Kenya is preparing to introduce a fully automated platform for settling external debt under the Treasury Single Account framework, signalling a notable change in how the government processes and oversees its foreign debt obligations.
The new system will enable debt payment instructions to be created, approved and executed electronically, replacing the step-by-step manual coordination that previously took place across multiple institutions. While the reform does not change the size or structure of Kenya’s debt, it fundamentally alters the administrative and governance processes that support debt servicing.
Its effectiveness will be judged by whether it results in faster payments, clearer lines of accountability among public institutions, and closer coordination between debt management, budgeting and cash management functions.
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Treasury officials say the platform brings together several key public finance systems, including the Meridian Debt Management System, the Central Bank of Kenya’s exchange rate platform, the Integrated Financial Management Information System, the exchequer requisition process, and approval workflows at the Office of the Controller of Budget.
By connecting debt records, budget controls, exchange rate data and statutory approvals within a single workflow, the system is designed to minimise fragmentation and reduce delays in servicing external debt. It operates within the Treasury Single Account structure, which centralises government cash management to strengthen oversight of public funds.
As external debt continues to take up a substantial share of public spending, automating payment processes marks a technical but significant shift in how the state manages its financial obligations.
