Citigroup is set to arrange a $1 billion US-backed debt swap for Kenya, according to a report published by Bloomberg on September 28, 2026. The transaction comes as Kenya continues efforts to manage its debt obligations and reduce pressure from financing costs.
A debt swap generally involves replacing or restructuring existing debt with new financing arrangements. The objective can include extending repayment periods, changing financing terms or reducing refinancing pressures. However, details of the proposed Kenyan transaction, including the specific debt to be covered and its final terms, have not yet been publicly disclosed in the available reporting.
The reported involvement of the United States could provide additional backing to the transaction as Kenya seeks to access financing on potentially more favourable terms. The deal would also add to Citigroup’s role in Kenya’s sovereign debt-management activities.
Citigroup has previously participated in Kenya’s debt transactions. In February 2026, Citigroup Global Markets Limited acted as one of the dealer managers for Kenya’s tender offer covering $1 billion of notes due in 2028 and $1.2 billion of amortising notes due in 2032.
The proposed swap comes at a time when Kenya is pursuing alternative financing mechanisms. The country has also been developing sustainability-linked financing instruments aimed at accessing potentially cheaper funding tied to environmental and development targets.
If completed, the $1 billion transaction could form part of Kenya’s broader strategy to manage refinancing risks and improve the structure of its public debt. Its ultimate impact will depend on the final terms, costs and obligations attached to the swap.
