•  Kenya is considering issuing new eurobonds to refinance maturing debt and improve its repayment profile, Finance Minister John Mbadi said.
•  Public debt rose 11.7% year-on-year to 11.81 trillion shillings ($91.55 billion) at end-June 2025, close to 70% of GDP.
•  The government has refinanced multiple eurobonds and is in talks with the IMF for a new support program after the previous one expired in April 2025.

Kenya is considering a return to international bond markets to refinance upcoming maturities and improve its overall debt repayment profile, Finance Minister John Mbadi said on Wednesday, Feb. 11.

Mbadi said the government may issue new eurobonds to repay existing obligations and optimize its liability structure. “Although the repayment profile currently appears satisfactory, there remains room for additional liability management operations,” he told a press conference.

Responding to media speculation that the government could issue a new eurobond during the current fiscal year ending in June 2026, Mbadi said the period “could be an ideal time to go to the market,” but he stressed that authorities have not taken a final decision.

The potential return to markets comes as Kenya faces rising public debt levels. Public debt stood at 11.81 trillion Kenyan shillings ($91.55 billion) at end-June 2025, up from 10.58 trillion shillings ($82.01 billion) a year earlier, according to National Treasury data. The figures reflect an 11.7% increase during the 2024/2025 fiscal year.

Toward a new IMF program

President William Ruto’s government adopted what it calls a “proactive global debt management strategy” to contain debt, which stands at about 70% of GDP. The strategy aims to lengthen maturities and increase the share of concessional borrowing to ease pressure on public finances.

Under this framework, the government has already refinanced three eurobonds to extend maturities. In October 2025, Kenya raised $1.5 billion on international debt markets to buy back $1 billion in eurobonds maturing in February 2028. In February 2025, the government repurchased $900 million of eurobonds due in 2027 through the issuance of a new eurobond. In February 2024, Nairobi bought back $1.44 billion of eurobonds maturing in June 2024 after raising $1.5 billion through a fresh issuance.

Kenya also converted three Chinese loans linked to a railway project from U.S. dollars into yuan. Authorities expect the restructuring to generate annual savings of $215 million through lower interest rates and extended maturities.

In parallel, Kenya opened discussions with the International Monetary Fund in September 2025 on a new support program after the previous arrangement expired in April 2025.

This article was initially published in French by Walid Kéfi

Adapted in English by Ange J.A de Berry Quenum