Govt Raises Ksh290 Billion in Move to Clear 2028, 2032 Eurobonds

Govt Raises Ksh290 Billion in Move to Clear 2028, 2032 Eurobonds

Nairobi, Kenya – The Government of Kenya has successfully raised Ksh290 billion ($2.25 billion) from international markets in a dual-tranche Eurobond issuance, a move aimed at easing pressure on debt repayments by refinancing two major Eurobonds maturing in 2028 and 2032.

Treasury Cabinet Secretary John Mbadi announced the development on Friday, February 20, noting that the proceeds will be used to partly refinance existing debt obligations and bridge the budget deficit ahead of the 2026/2027 fiscal cycle.

“The Government of Kenya is pleased to announce the successful pricing of a new dual-tranche Eurobond issuance totalling $2.25 billion,” Mbadi said.

Details of the Issuance

According to Mbadi, the government issued Ksh116 billion ($900 million) in seven-year bonds and Ksh168 billion ($1.35 billion) in 12-year bonds. The issuance attracted strong investor interest, with demand significantly exceeding the offered amount.

“The Eurobond issuance attracted strong, high-quality demand, with the order book significantly exceeding the offered amount,” Mbadi revealed.

He explained that the issuance aligns with the government’s debt management strategy, which seeks to smooth the maturity profile of external debt and proactively manage public liabilities.

Improved Borrowing Conditions

Kenya’s return to the international markets comes at a time when borrowing conditions have slightly improved globally, making it easier and cheaper for countries to access financing compared to previous years. Other African nations, including Ivory Coast and Congo, have also tapped into international markets in recent weeks.

Credit rating agencies have responded positively to Kenya’s debt management efforts. In January, Moody’s upgraded Kenya’s sovereign rating from Caa1 to B3, citing reduced near-term default risk, while revising the outlook to stable. Fitch Ratings also affirmed its B- rating with a stable outlook.

“It also reflects improving investor confidence, following Moody’s recent upgrade of Kenya’s sovereign rating to B3 from Caa1 and revision of the outlook to stable,” Mbadi affirmed.

Debt Management Strategy

Kenya has faced mounting debt obligations in recent years, with Eurobond repayments forming a significant portion of external liabilities. Analysts note that the latest issuance provides breathing space for the government by refinancing upcoming maturities while ensuring continued access to international capital markets.

The Treasury has emphasized that the funds will not only address debt repayments but also support fiscal stability as the country prepares for the 2026/2027 budget cycle.

Broader Implications

Economists argue that while the successful issuance demonstrates investor confidence, Kenya must continue implementing fiscal reforms to reduce reliance on external borrowing. The government’s ability to manage debt sustainably will remain under close scrutiny, particularly as global interest rates fluctuate and domestic revenue collection faces challenges.

Conclusion

The Ksh290 billion Eurobond issuance marks a significant step in Kenya’s debt management strategy, providing relief from looming repayments in 2028 and 2032 while reinforcing investor confidence in the country’s financial outlook. As the government navigates fiscal pressures, the move underscores the importance of balancing external borrowing with long-term economic reforms to ensure stability and growth.

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Govt Raises Ksh290 Billion in Move to Clear 2028, 2032 Eurobonds