NAIROBI, Kenya — The Government of Kenya has successfully priced a USD 2.25 billion dual-tranche Eurobond, underscoring renewed investor confidence and strengthening its strategy to manage public debt and smooth its external repayment profile.
Treasury Cabinet Secretary John Mbadi announced Friday that the fresh sovereign bond transaction attracted strong demand from international investors, with the order book significantly exceeding the amount on offer.
The issuance comprised USD 900 million in seven-year notes and USD 1.35 billion in 12-year notes, reflecting continued access to global capital markets for Kenya’s external financing needs.
A key feature of the transaction is its support for a tender offer to buy back portions of two existing Eurobonds: up to USD 150 million of the 7.250 per cent notes due in February 2028, and up to USD 350 million of the 8.000 per cent notes due in May 2032, inclusive of accrued interest.
The tender process, launched alongside the new issuance, is scheduled to close later this month with results expected shortly after.
The refreshed Eurobond and the linked buyback exercise form part of the Treasury’s broader liability-management strategy to smooth the country’s external debt maturity profile and ease refinancing pressures from large bullet repayments in the coming years.
By extending maturities and prepaying shorter-dated obligations, Kenya aims to reduce the risk of refinancing shocks and spread repayment obligations more evenly over time.
Officials also noted that the successful pricing follows improvements in Kenya’s sovereign credit metrics.
Moody’s Investors Service recently upgraded Kenya’s sovereign rating to B3 with a stable outlook, citing reduced default risk, stronger foreign-exchange reserves and a narrowing current account deficit, while Fitch Ratings affirmed a B- rating with a stable outlook.
These developments have helped bolster investor demand for Kenyan sovereign paper.
The latest Eurobond move aligns with a series of proactive debt operations by the Treasury, including earlier buybacks and refinancing efforts designed to manage rollover risk and support fiscal stability.
As borrowing conditions improve globally and investor appetite for emerging-market debt strengthens, Kenya’s return to the international capital markets demonstrates its ongoing engagement with global investors to balance financing needs and sustainable debt management.
