East African Breweries PLC (EABL) has raised KSh16.76 billion in the first tranche of its KSh20 billion Medium-Term Note (MTN) Programme, following an oversubscription rate of 52 percent. The company marked the successful listing of the corporate bond at the Nairobi Securities Exchange (NSE) during an official bell-ringing ceremony held in Nairobi.
The offering, which is one of the largest corporate debt issuances seen in Kenya this year, attracted strong interest from institutional and retail investors. The response reflects renewed appetite for high-quality corporate bonds as Kenya’s macroeconomic environment shows signs of stabilisation, easing concerns around inflation, interest rate uncertainty, and market liquidity.
EABL intends to deploy the funds raised from the first tranche to support strategic investments across its regional operations. This includes improving operational efficiencies, strengthening supply chains, and expanding capacity in Kenya, Uganda, and Tanzania. The broader KSh20 billion programme is designed to bolster the brewer’s long-term capital structure and enhance funding predictability.
Investor Confidence Rebounds
EABL Group Managing Director and CEO, Jane Karuku, said the robust investor response demonstrated strong confidence in the company’s financial resilience and long-term growth strategy.
“Today’s milestone reflects the confidence that investors continue to place in EABL’s performance, resilience, and strategic direction. The success of this first tranche is a major endorsement of our growth agenda and the disciplined execution of our long-term strategy. It also illustrates a maturing capital market, where investors are increasingly willing to back long-term corporate instruments from stable and reputable issuers,” Karuku said during the ceremony.
Investor appetite for corporate bonds in the past decade has fluctuated, largely influenced by the performance of previous issuers, defaults in certain sectors, and volatility in interest rates. The strong uptake of EABL’s note signals renewed optimism in the corporate debt market, driven by recent policy and regulatory actions aimed at boosting transparency and investor protection.
Government Backs Corporate Bond Market
Representing the National Treasury, Lawrence Kibet, the Director General for Public Investments and Portfolio Management, said the issuance supports the government’s goal of strengthening Kenya’s capital markets as a primary driver of investment and economic transformation.
“I congratulate the Board and Management of EABL for buttressing our bond issuers’ confidence in our domestic market through today’s listing of the first tranche of its KSh20 billion Medium-Term Note Programme on the NSE. As a Government, we are keen on consistently demonstrating that capital markets lie at the heart of our economic transformation agenda,” he said.
Kenya’s economic reform path has emphasised mobilising long-term local capital for both corporate and public sector investment. Reviving the corporate bond market is seen as essential to widening access to private financing, reducing overreliance on bank loans, and encouraging private sector-led growth.
Lead Arrangers Highlight Market Strength
Absa Bank Kenya, which served as the lead arranger for the corporate bond, noted that the success of the issuance demonstrated the strength and sophistication of Kenya’s financial ecosystem.
James Agin, Absa Kenya’s Managing Executive for Corporate and Investment Banking, said the bank was proud to support EABL’s financing strategy.
“We are delighted to have played the leading role in this transaction, which not only supports EABL’s strategic objectives but also contributes to the development of Kenya’s capital markets. This issuance is a testament to the strength of Kenya’s financial ecosystem and the increasing sophistication of our investor base,” he said.
Market analysts note that the performance of EABL’s note could help restore confidence in long-dated corporate paper, encouraging other companies to consider similar capital-raising strategies in 2026.
Inside the First Tranche of the MTN Programme
The table below summarises the key details of the Medium-Term Note’s first tranche as publicly announced.
Dataset: EABL Medium-Term Note (Tranche 1) Overview
| Metric | Value |
|---|---|
| Total MTN Programme Size | KSh20 billion |
| Amount Raised in Tranche 1 | KSh16.76 billion |
| Subscription Rate | 152 percent (52 percent oversubscription) |
| Use of Proceeds | Operational efficiencies, regional expansion, strategic investments |
| Listing Venue | Nairobi Securities Exchange |
| Lead Arranger | Absa Bank Kenya |
| Issuer | East African Breweries PLC |
| Investor Profile | Institutional and retail investors |
| Timing | January 2026 listing window |
Analysts note that EABL’s strong brand equity, regional footprint, and diversified portfolio contributed to the positive investor reception. The brewer has maintained robust cashflows supported by recovery in consumer demand, expansion of premium beer categories, and resilient performance in spirits.
Market Implications
The uptake of the EABL bond reinforces the position of local capital markets as an alternative source of affordable long-term financing. Kenya’s bond market has seen increased attention as companies seek to hedge against rising borrowing costs in the banking sector. The Medium-Term Note also provides investors with an alternative to government securities, which have dominated the fixed-income landscape.
For the NSE, the successful listing revitalises its fixed-income securities segment, which in recent years has experienced limited corporate activity. Improved investor confidence, combined with regulatory adjustments and stronger issuer disclosures, could usher in a fresh cycle of corporate bond issuances in sectors such as manufacturing, utilities, and telecommunications.
With the first tranche complete, attention now turns to the timing and structuring of the second tranche of the KSh20 billion programme. The schedule is expected to align with market conditions and the company’s ongoing capital needs across its East African markets.
The bell-ringing ceremony symbolises both a major corporate milestone for EABL and renewed momentum for Kenya’s debt capital markets. As stabilising macroeconomic indicators boost investor appetite, companies with strong balance sheets and credible strategies may increasingly turn to the public markets for long-term funding.
