NAIROBI, Kenya, Oct 11 – Kenya’s latest Eurobond prospectus has sparked confusion after appearing to contradict official records regarding the country’s engagement with the International Monetary Fund (IMF).
The National Treasury recently issued Sh98.6 billion ($750 million) in 7.875 percent amortising notes due 2033 and an additional Sh98.6 billion ($750 million) in 8.80 percent notes due 2038, both listed on the London Stock Exchange.
However, analysts have raised concerns over sections of the bond document that claim Kenya’s ninth review under the IMF’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF) was completed on July 10, 2025, resulting in a $976 million disbursement.
According to the prospectus, total disbursements under the 38-month program launched in 2021 stood at $3.8 billion.
The statements appear inconsistent with IMF records showing that the ninth review was aborted on March 17, 2025, after what the Fund described as a “mutual agreement” with Kenyan authorities. At the time, the IMF confirmed that Nairobi had requested to begin discussions on a new lending arrangement, effectively marking the end of the existing ECF/EFF program.
The discrepancy comes as Kenya seeks to rebuild investor confidence amid rising debt obligations and heightened scrutiny of its fiscal disclosures.
Analysts warn that the reference to an unverified IMF review in an official bond document could raise concerns about transparency and accuracy in government reporting to international investors.
Kenya’s public debt-to-GDP ratio currently hovers around 70 percent, well above the 55 percent ceiling set under the country’s fiscal framework.
To ease repayment pressure, the Treasury has been restructuring debt and issuing new Eurobonds, including a US$1.5 billion note earlier this year — to refinance maturing obligations.
Meanwhile, an IMF mission team is in Nairobi for consultations with the Treasury and the Central Bank to design a new financing program. The talks are expected to pave the way for a staff-level agreement before the end of the year.
