NAIROBI, Kenya, Oct 4 — The government has announced that it successfully raised USD 1.5 billion (Sh193.8 billion) from international capital markets and used part of the proceeds to redeem USD 1 billion of its Eurobond maturing in 2028 ahead of schedule.
In a statement on Thursday, Treasury Principal Secretary Chris Kiptoo said the new funding comprises a seven-year tranche priced at 7.875 percent and a twelve-year tranche at 8.8 percent, yielding an overall cost of 8.7 percent — about one percentage point lower than what Kenya would have paid.
“This is the third such transaction since 2024 and it demonstrates the government’s firm commitment to prudent debt management — paying off loans on time and shielding Kenyans from sudden repayment shocks,” he said.
Most of the subscriptions came from institutional investors in the US and the UK, which the government says reflects renewed investor confidence in Kenya’s debt management strategy.
By lowering borrowing costs and easing near-term repayment pressures, the Treasury expects to reduce the fiscal burden on taxpayers and free up resources for infrastructure, healthcare, and education.
The transaction also complements Kenya’s ongoing liability management programme, which includes bond buybacks and the issuance of new notes to smooth out future maturities.
While the deal helps the country avoid a large bullet repayment in 2028, analysts note that maintaining debt sustainability will still require strong economic growth, disciplined fiscal management, and continued access to concessional financing.
The successful issuance is also expected to strengthen Kenya’s position in ongoing negotiations with the International Monetary Fund (IMF), whose mission team is currently in Nairobi for program discussions.
