Kenya has pulled off a major win in the global debt markets, raising USD 1.5 billion (Ksh 193.8 billion) from international investors at cheaper rates and using part of the funds to pay off USD 1 billion (Ksh 129 billion) of its 2028 Eurobond ahead of schedule.
The National Treasury said the move will cut interest costs, ease the pressure on taxpayers, and help stabilise the economy at a time when many African nations are grappling with rising repayment bills.
“This transaction demonstrates the government’s firm commitment to managing debt more wisely, paying off loans on time, and protecting Kenyans from sudden repayment shocks,” Chris Kiptoo, Principal Secretary at the National Treasury, stated.
The deal is the third since 2024 aimed at restructuring Kenya’s debt. The government tapped the markets with two loans: a 7-year facility at 7.875 per cent interest and a 12-year facility at 8.8 per cent, blending to an overall cost of 8.7 per cent. That is one percentage point lower than what the country would have had to pay at the start of the year.
“By securing this deal, the government has also smoothened and lengthened loan repayments, giving Kenya more breathing space in managing its finances,” Kiptoo said.
Investor demand was strong, with the government’s USD 1.5 billion offer oversubscribed five times. Global fund managers, especially those in the United States and the United Kingdom, led the charge.
Officials say this level of interest reflects renewed confidence in Kenya’s economy and the country’s commitment to meeting its obligations.
“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 such as roads, health, and education,” Kiptoo added.
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