• Kenya launches $500 million Eurobond buyback maturing in 2028 and 2032.
• Operation financed through issuance of a new longer-dated Eurobond.
• Public debt stands at about 70% of GDP, with refinancing ongoing.

The Kenyan government on February 18 launched a process to repurchase $500 million of Eurobonds maturing in 2028 and 2032, financed through the issuance of a new Eurobond with a longer maturity.

The transaction, which runs through February 25, covers a maximum buyback of $350 million in 8% Eurobonds due in 2032 and $150 million in 7.25% Eurobonds due in 2028, according to a regulatory notice published on the London Stock Exchange website.

Investors holding the 2032 notes are being offered $1,055 for every $1,000 in principal. Holders of the 2028 bonds will receive $1,035 per $1,000. Accrued interest will be paid in addition to the purchase price. The buyback will be paired with the issuance of a new Eurobond structured in two tranches, with weighted average maturities of seven and twelve years.

Finance Minister John Mbadi (photo) had announced on February 11 that the Treasury was considering issuing a new Eurobond to refinance dollar-denominated obligations and improve the overall repayment profile of public debt. The move forms part of what authorities describe as a “proactive debt management strategy,” as Kenya’s public debt stands at nearly 70% of GDP.

As of end-June 2025, Kenya’s public debt totaled 11.81 trillion Kenyan shillings (about $91.55 billion), up from 10.58 trillion shillings a year earlier, marking an 11.7% increase during the 2024/2025 fiscal year, according to National Treasury data.

Extending Maturities

To contain debt levels and preserve repayment capacity, Nairobi has explored several measures, including extending maturities, increasing the share of concessional borrowing, and conducting currency swaps. Kenya’s international bond issuances are typically well subscribed by investors seeking higher yields, and the country has already refinanced three Eurobonds to spread out maturities.

The most recent refinancing took place in October 2025, when Kenya raised $1.5 billion on international markets to repay early $1 billion in Eurobonds due in February 2028. In February 2025, the government repurchased $900 million in Eurobonds maturing in 2027 using proceeds from a new Eurobond issuance. A year earlier, Nairobi bought back $1.44 billion in Eurobonds after raising $1.5 billion through another issuance.

The government has also converted three Chinese loans linked to a railway project from dollars to yuan, aiming to save $215 million annually through lower interest rates and extended maturities. In September 2025, discussions were opened with the International Monetary Fund (IMF) on a new assistance program after the previous arrangement expired in April 2025.

Walid Kéfi