NAIROBI, Kenya, Feb 20 – The Kenyan government has raised Sh290.3 billion ($2.25 billion) from the international bond market to refinance maturing Eurobonds and support budgetary needs.
In a statement, National Treasury Cabinet Secretary John Mbadi said the dual-tranche issuance comprises a Sh116 billion ($900 million) note priced at a yield of 7.875 percent with maturities in 2032, 2033 and 2034, and a Sh174.5 billion ($1.35 billion) bond carrying an 8.7 percent yield with maturities in 2037, 2038 and 2039.
The successful issuance follows the Treasury’s announcement of plans to retire portions of its 2028 and 2032 Eurobonds through a Sh64.5 billion ($500 million) tender offer.
Under the liability management exercise announced on Tuesday, the Government offered to buy back up to $350 million of its 8 percent amortizing notes due in 2032 and up to $150 million of its 7.25 percent notes due in 2028.
“The Eurobond issuance attracted strong, high-quality demand, with the order book significantly exceeding the offered amount,” Mbadi said.
“The proceeds will be used to refinance existing public debt obligations, including the Government’s tender offer to purchase up to USD 150 million of the outstanding 7.250 per cent Notes due in February 2028 and up to USD 350 million of the outstanding 8.000 per cent Notes due in May 2032 (in both cases inclusive of accrued interest),” he added.
“Any remaining proceeds will support general budgetary needs. Tender offer results will be announced on 26th February 2026.”
The return to the international capital markets comes after Moody’s Ratings upgraded Kenya’s sovereign credit rating last month, citing reduced near-term default risks supported by stronger external liquidity and improved access to global financing.
Moody’s said the upgrade reflects strengthened foreign-exchange reserves, a narrower current account deficit and more stable exchange rate developments that have eased balance-of-payments pressures and expanded the government’s funding options.
“This issuance aligns with the Government’s strategy to smoothen the maturity profile of Kenya’s external debt and proactively manage public debt liabilities,” Mbadi said.
“It also reflects improving investor confidence, following Moody’s recent upgrade of Kenya’s sovereign rating and revision of the outlook to stable, on account of reduced default risks, stronger foreign-exchange reserves and a narrower current account deficit.”
