Kenya has re-entered the international capital markets to finance a $500 million (KSh 64.5 billion) Eurobond buyback, in a move aimed at easing near-term repayment pressure and restructuring its public debt.
According to a notice published on the London Stock Exchange, the government is targeting two outstanding bonds:
Up to $350 million of the 8% Eurobond maturing in 2032
Up to $150 million of the 7.25% Eurobond due in 2028
💰 What Investors Are Being Offered
To encourage participation, Kenya is offering:
5.5% premium for the 2032 bond
3.5% premium for the 2028 bond
Plus accrued interest
The buyback closes on February 25, 2026.
🔄 How Kenya Will Finance the Buyback
The repurchase will be funded through a new dual-tranche dollar Eurobond, structured as:
7-year maturity
12-year maturity
This strategy allows Kenya to:
Replace shorter-term debt
Spread out repayment obligations
Reduce the risk of large lump-sum repayments in a single year
This marks Kenya’s fourth Eurobond buyback in just over two years, reflecting an active debt management strategy by the National Treasury of Kenya.
📈 Why Now?
The move comes amid improving investor confidence, helped by:
A recent credit rating upgrade from Moody’s Investors Service
Stronger foreign exchange reserves
Lower short-term default risk
Kenya now joins other African nations such as:
Republic of the Congo
Ivory Coast
Both countries have recently tapped global markets amid renewed appetite for emerging market debt.
🎯 What This Means for Kenya
If successful, the buyback will:
Smooth out Kenya’s debt repayment schedule
Reduce refinancing risk
Signal improved market access
Potentially lower long-term borrowing costs
However, it also increases total external debt exposure in the near term through the issuance of new bonds — meaning continued fiscal discipline will remain critical.
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