Kenya Secures Ksh290 Billion Eurobond to Refinance Debt
Treasury CS John Mbadi. [Photo/@KeTreasury/X]
The Government of Kenya has successfully priced a USD 2.25 billion (Ksh290.76 billion) dual-tranche Eurobond, marking a significant step in its strategy to strengthen debt management and smooth the country’s external debt maturity profile.
In a press release issued by the National Treasury on February 20, 2026, the government announced that the issuance attracted strong investor demand, with orders significantly exceeding the amount offered.
The bond comprises two tranches:
- USD 900 million at 7.875 percent, due in 2034, amortizing in equal instalments in 2032, 2033 and 2034, with a weighted average life of seven years; and
- USD 1.35 billion at 8.700 percent, due in 2039, amortizing in 2037, 2038 and 2039, with a weighted average life of 12 years.
According to the Treasury, the proceeds will primarily be used to refinance existing public debt. This includes a tender offer to purchase up to USD 150 million of the outstanding 7.250 percent notes due February 2028 and up to USD 350 million of the outstanding 8.000 percent notes due May 2032, inclusive of accrued interest. Any remaining funds will support general budgetary needs.
The government said the transaction aligns with its broader strategy to proactively manage public debt and reduce refinancing risks by spreading out maturities.
Treasury further noted that the successful issuance reflects improved investor confidence, following Moody’s recent upgrade of Kenya’s sovereign rating to B3 from Caa1 and revision of the outlook to stable. The rating action cited reduced default risks, stronger foreign exchange reserves and a narrower current account deficit.
Cabinet Secretary for the National Treasury John Mbadi reaffirmed the government’s commitment to prudent, transparent and effective debt management, describing it as a key pillar of the Bottom-Up Economic Transformation Agenda (BETA) championed by President William Ruto.
The results of the tender offer are expected to be announced on February 26, 2026.
