National Treasury Ready To Launch New Payment System For External Debt
In an effort to update the nation’s public financial management systems, the National Treasury plans to introduce a new external debt payment platform next month.
The system will function under the Treasury Single Account framework and is set to start on Monday, February 2, according to a statement released by Treasury Principal Secretary Chris Kiptoo on Tuesday, January 27.
Kiptoo is confident that the new approach will play a significant role in improving the effectiveness, accountability, transparency, and governance of the nation’s foreign debt management.
The Meridian Debt Management System will be integrated with the Central Bank of Kenya exchange rate system, IFMIS, Exchequer requisition, and the Office of the Controller of Budget approval procedure, according to the PS.
Automation of external debt payment marks a major milestone in the modernisation of Kenya’s public financial management systems.
— Dr Chris Kiptoo, CBS (@Kiptoock) January 27, 2026
We are fully automating the external debt payment platform, which is now ready for deployment under the Treasury Single Account framework. This reform… pic.twitter.com/51cb60ITnr
“I was briefed by the project team on the implementation progress, with the automation scheduled to go live on 2nd February 2026,” Kiptoo said.
“A parallel run for one month will be undertaken to ensure a smooth, controlled, and risk-mitigated transition.”
“The system will enable seamless generation, approval, and execution of debt payment instructions, while transitioning fully from manual, paper-based processes to secure digital workflows,” he added.
As of late 2025, the nation’s external debt amounted to about Ksh 5.5 trillion, or 47% of its overall public debt of more than Ksh 11 trillion.
The credit rating firm Fitch said a few days ago that the nation’s capacity to settle international obligations had improved.
This comprises the repurchase of a Ksh115 million Eurobond due in 2027 and the issuing of a portion of a Ksh129 billion Eurobond due in 2028.
ALSO READ:
- “Don’t Attack Public Infrastructure!” – IG Kanja Asks Kenyans, Issues Orders To Police
- “NO MORE NIL TAX RETURNS!” – KRA Tells Kenyans, Introduces New Changes
- Eliud Owalo Blasts Ruto Gov’t, Demands EACC & DCI Investigations Into Fake Sugar Scandal
- President’s Office Releases 2026 National Holidays Calendar, Names Host Counties
- Kenya Goes After British Oil Giant Over Hundreds Of Deaths In The North
In a report on Friday, January 23, the rating agency also noted that the government’s move to change some loans from US dollars to Chinese yuan had slightly reduced the country’s annual debt cost.
The agency noted that even with a fairly positive economic outlook, the country faces substantial financing needs to service its foreign debt, with external borrowing projected to increase sharply in 2026.
“Government external debt service, including amortisation plus interest, after the buybacks of Eurobonds, is expected to rise in the financial year ending June 2026,” the agency warned.
“Government external debt service will rise back above $5 billion in the 2028-2030 financial years, keeping gross external financing needs high,” it added.
National Treasury Ready To Launch New Payment System For External Debt
