Kenya rushes to repay US loans after Washington policy change

Kenya’s debt payments to the US soared 51-fold to Sh18.4 billion in 2025 as Washington shifted from direct loans to agency financing.

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Kenya’s debt service to the United States surged in the year to June 2025 to Sh18.4 billion, up from just Sh357 million in 2024, as the government accelerated repayments amid a policy shift by Washington to end direct lending to countries.

The 51.6 times jump pushed Kenya’s US debt repayments of both principal and interest to record levels, reflecting efforts to clear sovereign debt owed to one of its key bilateral lenders.

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