Kenya raises USD 1.5 billion (Ksh193.8B) from global markets.
Kenya has secured USD 1.5 billion (Ksh193.8 billion) from international markets, with a portion of the funds going to settle USD 1 billion (Ksh129.2 billion) of the 2028 Eurobond ahead of schedule. The move was announced on Friday, October 3, as part of the government’s wider plan to manage debt more responsibly.
Treasury Principal Secretary Dr Chris Kiptoo described the deal as proof of Kenya’s resolve to manage debt prudently.
“This is the third such transaction since 2024, and it shows the Government’s firm commitment to managing debt more wisely, paying off loans on time, and protecting Kenyans from sudden repayment shocks,” he stated.
The financing was split into two tranches: A 7-year loan at 7.875% interest. A 12-year loan at 8.8% interest.
This resulted in a blended rate of 8.7%, which is about 1% lower than what Kenya would have paid earlier in the year. Kiptoo said the arrangement would “smooth and lengthen loan repayments, giving Kenya more breathing space in managing its finances.”
The issuance attracted over USD 7.5 billion (Ksh969 billion) in bids, five times the amount Kenya was seeking. According to Kiptoo, most of the interest came from U.S. and U.K. fund managers, signalling a renewed vote of confidence in the country’s economy.
The early Eurobond repayment is expected to ease pressure on external debt and help restructure maturities due in 2027. Analysts say the move will allow Kenya to balance development financing with sustainable borrowing, while also strengthening its long-term fiscal stability.
