Kenya Raises $1.5B in Oversubscribed Bonds to Retire 2028 Debt Early

Kenya has successfully raised $1.5 billion through a dual-tranche Eurobond issuance, with strong investor demand exceeding $7.5 billion, primarily from fund managers in the US and UK. The bonds include a seven-year instrument at 7.875% and a 12-year instrument at 8.8%, resulting in a blended interest rate of 8.7%, which is one percentage point lower than earlier this year. Part of these funds, totaling $1 billion, has been used to retire the 2028 Eurobond ahead of schedule, marking the third such early repayment since 2024 and underscoring the government's commitment to prudent debt management. This strategy helps to reduce borrowing costs, ease pressure on taxpayers, smooth and extend loan repayments, and improve fiscal flexibility. Treasury Principal Secretary Chris Kiptoo emphasized that this move signals renewed investor confidence in Kenya's economy and creates room for funding development priorities such as roads, health, and education. The successful bond sale also reflects Kenya's efforts to stabilize its economy following previous political and economic turbulence.