NAIROBI, Kenya, Oct 3 – The government has raised $1.5 billion (Sh193.8 billion) in international capital markets, using part of the proceeds to redeem $1 billion of its 2028 Eurobond ahead of schedule.
Treasury Principal Secretary Chris Kiptoo said the issuance comprised a 7-year tranche at 7.875 percent and a 12-year tranche at 8.8 percent, with an overall cost of 8.7 percent, nearly a full percentage point lower than earlier in the year.
“This is the third such transaction since 2024, and it shows the Government’s firm commitment to managing debt more wisely, paying off loans on time, and protecting Kenyans from sudden repayment shock,” Kiptoo said.
Most subscriptions came from institutional investors in the U.S. and the U.K., which the Treasury says signals renewed confidence in Kenya’s debt management.
By refinancing at lower rates and spreading out maturities, the government hopes to ease pressure on taxpayers, free up fiscal space for infrastructure, healthcare, and education, and smooth future repayment obligations.
The move is part of Kenya’s broader liability-management strategy, which also includes buybacks and new note issuances.
However, analysts caution that long-term sustainability will still depend on strong growth, prudent fiscal policy, and continued access to concessional financing.
The successful sale comes as the IMF conducts review talks in Nairobi, potentially strengthening the country’s negotiating hand.
