The Government of Kenya, through the National Treasury and Economic Planning, has successfully raised USD 1.5 billion (Sh193.8 billion) from international investors while simultaneously settling USD 1 billion of the 2028 Eurobond ahead of schedule.
This marks the third successful Eurobond transaction since 2024, underlining the government’s strategy to proactively manage public debt, reduce repayment risks, and safeguard Kenyans from sudden fiscal shocks.
Lower Borrowing Costs, Longer Repayment Periods
The new financing was structured into two tranches:
- A 7-year note priced at 8.8%, and
- A 12-year note priced at 8.375%,
bringing the blended cost to 8.7%, nearly 1% lower than the rate Kenya would have faced earlier in the year.
According to the Treasury, this approach not only reduced borrowing costs but also extended repayment timelines, giving the country greater financial flexibility.
Strong Investor Confidence
Investor demand was robust, with bids exceeding USD 7.5 billion, more than five times the amount sought. The bulk of participation came from leading international fund managers in the United States and the United Kingdom, signaling renewed confidence in Kenya’s economic outlook.
Dr. Chris Kiptoo, CBS, Principal Secretary at the National Treasury, said:
“This success means Kenya will spend less on interest, ease pressure on taxpayers, and keep the economy stable while creating room to fund development priorities such as roads, health, and education.”
Debt Management Strategy
By retiring part of the 2028 Eurobond early, Kenya has smoothed its repayment profile, reducing future refinancing risks. This move builds on the government’s recent efforts to restructure debt on more favorable terms and maintain macroeconomic stability.
The Treasury emphasized that the successful issuance reflects renewed global investor confidence in Kenya’s fiscal discipline, growth potential, and ongoing reforms.
