The Government of Kenya has successfully priced a $1.5 billion Eurobond as part of its Liability Management Strategy, attracting strong investor demand and reinforcing confidence in the country’s economic outlook.
According to the National Treasury and Economic Planning, the 10-year bond carries a 9.5% coupon rate and will be amortized in three equal installments between 2034 and 2036. The issuance saw a high-quality order book exceeding $5 billion, signaling robust investor confidence in Kenya’s financial management.
“The Government of Kenya is pleased to announce the successful pricing of a new US$1.5 billion Eurobond,” the statement read, adding that proceeds will be used to refinance external debt, including the planned buyback of Kenya’s $900 million Eurobond due in 2027. The final buyback amount will be determined based on demand, with results expected on March 3, 2025.
The issuance follows Kenya’s successful $1 billion Eurobond in February 2024 and the full repayment of the 2024 Eurobond, aligning with the government’s strategy to smoothen debt maturity profiles and proactively manage public debt liabilities.
“This pricing marks another significant step in advancing the Bottom-Up Economic Transformation Agenda (BETA) spearheaded by President William Ruto,” stated the Treasury.
Kenya’s continued ability to tap international capital markets underscores strong investor confidence. The government reaffirmed its commitment to prudent and sound public debt management, ensuring long-term financial sustainability.
With the new Eurobond in place, Kenya aims to reduce short-term debt pressures while maintaining a sustainable economic trajectory.
