• Kenya raised $1.5 billion through a dual-tranche eurobond issuance at an average rate of 8.7%.

• The government will use proceeds to prepay $1 billion of eurobonds due in February 2028.

• Investor demand reached $7.5 billion, five times the amount offered, led by U.S. and U.K. fund managers.

Kenya raised $1.5 billion on international debt markets to prepay $1 billion of eurobonds maturing in February 2028, Principal Secretary to the National Treasury Chris Kiptoo said in a statement on October 3.

The issuance is the country’s third eurobond buyback since February 2024 as Nairobi pursues debt restructuring to ease repayment pressures. Kenya’s public debt stands near 70% of gross domestic product.

The new issue consisted of two tranches: $750 million of seven-year notes at 7.875% and $750 million of 12-year notes at 8.8%. The blended rate of 8.7% is one percentage point lower than Kenya would have paid earlier this year, according to the Treasury.

Kiptoo highlighted the strong demand, saying the order book exceeded $7.5 billion. “Most of the demand came from trusted international fund managers in the U.S. and the U.K., showing the world has renewed confidence in the Kenyan economy,” he said.

Kiptoo said the issuance reduces pressure on taxpayers, strengthens investor confidence, and creates fiscal space for development priorities such as roads, health, and education.

Kenya redeemed $900 million of 2027 eurobonds in February 2025 and $1.44 billion of June 2024 maturities the year before, both funded by new eurobond issuances.

Beyond eurobond buybacks, Kenya is exploring innovative debt-relief instruments. In September, the Treasury said it was negotiating a $1 billion “debt-for-food” swap with the World Food Programme by March 2026. The agreement would convert part of the debt into investments in food security projects, including modern irrigation systems, agricultural programs, and food storage infrastructure.

Kenya’s international borrowing strategy remains central to managing its debt load, as eurobond maturities loom over the next decade. Officials continue to emphasize proactive management to sustain investor trust while securing fiscal room for growth investments.

This article was initially published in French by Walid Kéfi

Adapted in English by Ange Jason Quenum