WFP negotiates $1bn debt-for-food swap

Kenya is seeking to finalise by March 2026, a debt-for-food swap worth an estimated $1bn with the World Food Programme (WFP), according to a Finance Ministry document. Ecofin Agency reports that the mechanism would allow the country to convert part of its existing debt into food resources without taking on new loans. Negotiations with the WFP focus on transforming part of Kenya’s debt into investments in food security programmes. Funds freed up through the swap could be directed toward agricultural projects, irrigation systems, food storage facilities and nutrition programmes, helping ease food insecurity in the country. The UN Food and Agriculture Organisation estimates that more than 3.4m Kenyans face acute food insecurity, driven by climate change, population growth and limited access to modern farming practices. The deal could also help ease Kenya’s debt burden. The International Monetary Fund classifies the country as being at high risk of debt distress. This would not be Kenya’s first experience with debt swaps. In 2024, Germany supported a €60m debt conversion initiative in exchange for Kenyan Government investments in climate projects, the Ministry document noted.

Full report in Ecofin Agency