Treasury set to automate external debt payments from February 2026
By Cy Muganda, January 27, 2026The National Treasury has announced plans to fully automate Kenya’s external debt payment process from February 2026, a move it says will mark a major milestone in the modernisation of public financial management systems.
In a statement posted on his X account on Tuesday, January 27, 2026, Treasury Principal Secretary Chris Kiptoo said the automation of external debt payments would significantly improve efficiency, transparency and accountability in the management of the country’s debt obligations.
“Automation of external debt payment marks a major milestone in the modernisation of Kenya’s public financial management systems,” Kiptoo said.
System integration
He noted that the external debt payment platform is now ready for deployment under the Treasury Single Account (TSA) framework, adding that the reform will strengthen governance while eliminating inefficiencies associated with manual processes.
“We are fully automating the external debt payment platform, which is now ready for deployment under the Treasury Single Account framework. This reform will significantly enhance efficiency, transparency, accountability, and governance in the management of Kenya’s external debt obligations,” Kiptoo stated.
According to the Treasury PS, the new system brings together several key government platforms, enabling seamless and secure processing of debt payments from initiation to execution.
“The system integrates the Meridian Debt Management System with the Central Bank of Kenya exchange rates system, IFMIS, Exchequer requisition and the Office of the Controller of Budget approval process, enabling seamless generation, approval, and execution of debt payment instructions, while transitioning fully from manual, paper-based processes to secure digital workflows,” he said.
Implementation timeline
Kiptoo disclosed that the automation is scheduled to go live on February 2, 2026, following briefings from the project implementation team on the system’s readiness.
“I was briefed by the project team on the implementation progress, with the automation scheduled to go live on 2nd February 2026,” he said.
To minimise risks during the transition, Kiptoo said the Treasury will run the automated system alongside existing processes for a limited period.
“A parallel run for one month will be undertaken to ensure a smooth, controlled, and risk-mitigated transition,” he added.