Kenya secures USD 1.5B (Ksh193.8B) from global markets.
The Kenyan government has raised USD 1.5 billion (Ksh193.8 billion) from international investors and used part of the funds to retire USD 1 billion (Ksh129.2 billion) of the 2028 Eurobond ahead of schedule.
National Treasury Principal Secretary Dr Chris Kiptoo hailed the deal, calling it a milestone in prudent debt management.
“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 said.
The borrowing was split into: a 7-year loan at 7.875% interest and a 12-year loan at 8.8% interest,
giving an average rate of 8.7% about 1% lower than Kenya would have paid earlier this year. Kiptoo said this flexibility would “smooth and lengthen repayments, giving Kenya more breathing space in managing its finances.”
The issuance was five times oversubscribed, attracting over USD 7.5 billion (Ksh969 billion) in bids, mainly from U.S. and U.K. fund managers. Kiptoo said the response showed renewed confidence in Kenya’s economy.
“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,” he added.
The announcement comes a month after President William Ruto emphasised his ambition to make Kenya a self-reliant economy free from overdependence on foreign debt.
Speaking in Siaya County on August 31, Ruto likened Kenya to Asian nations such as Korea, China, and Singapore, which transformed their economies in a short period.
“There is no shortage of resources and plans in this country. What stands between the greatness of the country and the present is a focused, patriotic and courageous leadership,” Ruto said.
The President argued that with political stability and strong leadership, Kenya could join the ranks of developed nations within a generation.
Ruto pointed to progress under his administration, citing: NSSF savings doubling from Ksh 320B to Ksh 640B in three years. Reduced importation of sugar and maize by 70%, following investments in agriculture.
He added that in less than 20 years, Kenya should be able to finance development projects using domestic savings rather than external loans.
“Like the Koreans, Chinese and Singaporeans transformed their countries, we can also change Kenya in our lifetime and make it a first-world nation,” he said.
