NAIROBI, Kenya – Kenya has raised $1.5 billion (about Sh193.8 billion) from international lenders in a fresh deal that the government says will reduce borrowing costs, ease pressure on taxpayers, and give the economy greater stability.
The National Treasury on Friday confirmed that the financing was secured through two tranches — a seven-year facility at 7.875 percent interest and a 12-year facility at 8.8 percent — averaging 8.7 percent.
Officials said this was one percentage point lower than the rate Kenya would have paid earlier in the year.
Part of the funds has already been used to retire $1 billion of the country’s 2028 Eurobond ahead of schedule, a move aimed at curbing future interest costs and spreading repayments over a longer period.
“This transaction shows the Government’s firm commitment to managing debt more wisely, paying off loans on time, and protecting Kenyans from sudden repayment shocks,” said Treasury Principal Secretary Chris Kiptoo.
The deal attracted overwhelming interest from global investors, with offers exceeding $7.5 billion — five times what Kenya sought.
Most of the bids came from fund managers in the United States and the United Kingdom, signaling renewed confidence in Kenya’s economy.
By refinancing earlier debt at lower rates, Treasury officials say the country will save on interest payments, ease the tax burden, and create fiscal space for development in key sectors such as roads, healthcare, and education.
“This success means Kenya will spend less on interest, ease pressure on taxpayers, and keep the economy stable while creating room to fund development priorities,” Dr. Kiptoo added.
The operation marks the third major debt management transaction under President William Ruto’s administration since 2024, part of a broader effort to restructure public debt and reduce the risks of large repayments falling due at once.
