Kenya has secured Ksh290 billion to settle two significant Eurobonds scheduled for maturity in 2028 and 2032, alleviating strain on the nation’s debt obligations.
Treasury Cabinet Secretary John Mbadi announced on Friday, February 20, that the funds were obtained from international markets through a new bond offering.
“I am pleased to report the successful pricing of a dual-tranche Eurobond totaling $2.25 billion by the government of Kenya,” stated Mbadi.
The allocated funds will be used to settle existing debts and address the budget deficit prior to the 2026/2027 fiscal year.
Kenya joins several African nations, including Ivory Coast and Congo, in returning to international markets as borrowing conditions have improved in recent weeks.
According to Mbadi, the government issued Ksh116 billion ($900 million) in seven-year bonds and Ksh168 billion ($1.35 billion) in 12-year bonds, demonstrating substantial investor interest.
“The Eurobond offering received strong, high-quality demand, with the order book substantially surpassing the available amount,” the Cabinet Secretary disclosed.
Mbadi emphasized that the issuance aligns with the government’s approach to stabilize Kenya’s external debt maturity timeline and prudently manage public financial obligations.
Kenya’s action coincides with favorable global conditions, making international financing more accessible and affordable than in previous years.
Notably, credit rating agencies like Moody’s have responded positively recently, acknowledging that Kenya’s default risk in the short term has decreased despite the country’s substantial debt burden.
In January, Moody’s Ratings elevated Kenya’s rating to B3 from Caa1, citing reduced near-term default risk while adjusting the outlook to stable. Concurrently, Fitch Ratings maintained its B- rating with a stable outlook.
“This also signifies growing investor confidence, following Moody’s recent elevation of Kenya’s sovereign rating to B3 from Caa1 and adjustment of the outlook to stable,” Mbadi confirmed.