Kenya has taken a bold step toward easing its mounting debt burden and improving the lives of its citizens, thanks to a series of landmark agreements with the United States—deals that could reshape the country’s financial and public health landscape for years to come. On December 4, 2025, President William Ruto announced the signing of a USD 1.6 billion (KSh 207 billion) debt-for-food security swap with the U.S. International Finance Corporation, a move designed to replace expensive loans with lower-cost financing and to channel the savings directly into vital food security programs.
This innovative arrangement, as reported by Reuters and Bloomberg, mirrors the debt-for-nature swaps seen in countries like Ecuador, Belize, and Gabon, where lower interest rates are offered in exchange for social or environmental commitments. For Kenya, this means freeing up resources currently tied to costly debt repayments and instead investing those funds into boosting the nation’s food security—a pressing concern as the country grapples with high public debt and rising repayment obligations.
But the financial deal is only one part of a broader, deepening relationship between Kenya and the United States. In a significant parallel development, the two countries signed the Health Cooperation Framework, a bilateral agreement that commits USD 1.6 billion to Kenya’s health sector over five years. This framework, signed by U.S. Secretary of State Marco Rubio and Kenya’s Prime Cabinet Secretary Musalia Mudavadi in Washington, D.C., was witnessed by President Ruto himself. The agreement marks a new phase in a partnership that has already seen over USD 7 billion (KSh 905 billion) invested in Kenya’s health sector since 2003.
President Ruto, in a statement posted on X, expressed gratitude for the U.S. choosing Kenya as the first nation to sign such a framework, noting, “This decision reflects growing confidence in the strength, sustainability, and reform momentum of our healthcare systems.” The framework is designed to prioritize the supply of modern medical equipment to hospitals, ensure the efficient and timely delivery of essential health commodities, upscale the health workforce, and expand health insurance coverage to protect every Kenyan.
One of the most notable aspects of the new health deal is its focus on gradually reducing Kenya’s long-term dependence on foreign aid. According to Bloomberg, Kenya will assume responsibility for health worker salaries and the procurement of medical supplies that were previously financed by the U.S. Additionally, the funding will support disease surveillance efforts for HIV/AIDS, tuberculosis, and malaria, as well as the rollout of a national electronic medical records system. Kenya, for its part, has committed to increasing its own health budget by KSh 110 billion (USD 850 million), signaling a move toward greater self-reliance in the sector.
Secretary of State Marco Rubio emphasized the importance of this shift, stating, “The partnership promotes long-term self-reliance.” The deal is aligned with the America First Global Health Strategy, released in September, which encourages recipient countries to take on more responsibility for their own health outcomes.
The agreements were announced as President Ruto attended a U.S.-brokered accord signing between the Democratic Republic of the Congo and Rwanda in Washington. During his visit, Ruto also revealed that the U.S. Development Finance Corporation (DFC) would deepen its engagement with Kenya by posting a representative in Nairobi starting in 2026. The DFC, America’s development finance institution, is expected to play a key role in implementing the debt-for-food swap and supporting Kenya’s broader development agenda.
Debt swap agreements that focus on social or environmental benefits have become increasingly popular financing tools in lower-income countries, particularly as traditional aid flows wane and governments seek innovative ways to create fiscal space for essential development spending. For Kenya, which has struggled under the weight of public debt, these deals offer a rare chance to redirect funds toward critical sectors like food security and health—areas that directly impact everyday life.
“We express our deep appreciation to the Government of the United States, under the leadership of President Donald J. Trump, for choosing Kenya as the first nation to sign such a framework,” Ruto said, highlighting the significance of the partnership and the trust it reflects in Kenya’s reform efforts.
Meanwhile, the U.S. is taking a markedly different approach with Kenya’s neighbor, Tanzania. Following the contested presidential elections on October 29, 2025, the U.S. State Department announced a comprehensive review of its relationship with Tanzania. The move comes in response to what the State Department described as “ongoing repression of religious freedom and free speech, the presence of persistent obstacles to U.S. investment, and disturbing violence against civilians in the days leading up to and following Tanzania’s October 29 election.”
United Nations human rights experts have estimated that hundreds of people were shot dead and many more detained in the aftermath of the Tanzanian elections. These events have raised alarms in Washington and elsewhere. State Department Principal Deputy Spokesperson Tommy Pigott stated, “The United States cannot overlook actions that jeopardize the safety of our citizens, or the security and stability of the region. The future of our bilateral relationship with the government of Tanzania will be based on its actions.”
American citizens, tourists, and business interests have all been put at risk by the violence and repression, the U.S. government says. The review of ties with Tanzania follows threats from the European Union to sanction the East African nation over similar concerns. The U.S. has not provided a timeline for the review, but the message is clear: future cooperation hinges on improvements in human rights and governance.
Adding to the controversy, Meta—the parent company of Facebook, Instagram, and WhatsApp—confirmed that it had disabled or restricted the social media accounts of two Tanzanian activists who had been sharing videos of post-election violence. Meta stated that Maria Sarungi-Tsehai’s Instagram account was locked following a legal order from the Tanzanian government, and that Mange Kimambi was banned from Instagram and WhatsApp for repeatedly violating its recidivism rules. These actions have sparked concerns about freedom of expression and the growing influence of digital platforms in political conflict zones.
Back in Kenya, the hope is that the new agreements with the U.S. will not only provide immediate relief from crushing debt but also lay the groundwork for sustainable development. The debt-for-food swap, in particular, is expected to serve as a model for other countries facing similar fiscal pressures, while the health cooperation framework could help Kenya build a more resilient and self-sufficient healthcare system.
As Kenya looks to the future, the success of these deals will depend on transparent implementation, strong oversight, and continued commitment from both sides. The stakes are high, but for many Kenyans, the prospect of better healthcare, improved food security, and a lighter debt load offers a glimmer of hope in challenging times.