The government has successfully raised USD 1.5 billion (Ksh193.8 billion) from international investors and used part of the funds to pay off a portion of its Eurobond ahead of schedule.
In a statement on Friday, October 3, National Treasury Principal Secretary Chris Kiptoo confirmed the move, describing it as a milestone in managing Kenya’s debt.
He explained that the financing round was part of a strategy to reduce risks associated with debt repayments and improve investor confidence in Kenya.
“The Government is pleased to announce that it has successfully raised USD 1.5 billion (Ksh193.8 billion) from international investors and at the same time paid off USD 1 billion of the 2028 Eurobond ahead of schedule.
“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.
Kiptoo disclosed that the funds were secured through two parts, a 7-year loan at 7.875% interest and a 12-year loan at 8.8%.
According to the PS, combined, the terms gave Kenya an average borrowing rate of 8.7%, lower than what the country would have paid earlier this year.
“The money was raised in two parts; a 7-year loan at an interest rate of 7.875%, and a 12-year loan at 8.8%, together giving Kenya a better rate of 8.7%, which is 1% lower than what the country would have paid at the start of the year,” he added.
Kiptoo noted that the arrangement provides Kenya with much-needed flexibility in handling repayments.
“By securing this deal, the Government has also smoothened and lengthened loan repayments, giving Kenya more breathing space in managing its finances,” he further said.
Kiptoo further explained that investor demand for the bond exceeded expectations, signaling renewed global confidence in Kenya’s economic prospects.
“The response from investors was very strong. The Government asked for USD 1.5 billion, but investors offered more than USD 7.5 billion, five times the amount needed.
“Most of this support came from trusted international fund managers in the United States and the United Kingdom, showing that the world has renewed confidence in Kenya’s economy,” he stated.
Kiptoo said the benefits of the transaction go beyond immediate debt repayment, as it is expected to ease the burden on taxpayers.
“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,” the statement concluded.
This comes a month after President William Ruto said he intends to develop Kenya’s economy and make it self-reliant away from external lenders.
Speaking in Siaya County on Sunday, August 31, while gracing an interdenominational service, he observed that Kenya has the potential to develop its economy to compete with the other known ones across the globe.
He likened Kenya to Asian countries like Korea, China and Singapore which have grown to perform world economies in a short period of time.
According to Ruto, such successes can only be realised with political stability, thanking ODM leader Raila Odinga for embracing the Kenya Kwanza regime to create an enabling environment for growth.
“We are citizens of a great nation called Kenya, and it is our responsbility and up to us to change the destiny of this nation. What we have done to bring together people and assemble the broad-based government, is because it is necessary for the unity of this nation so that we can prosecute the important agenda of developing this nation and its transformation,” he said.
Ruto explained that Kenya’s undoing is the lack of goodwill to implement transformation.
He noted that the country has the resources and viable plans but fail at the implementation level due to unpatriotic holders of power and positions of influence.
“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. I am confident about the future of this country.
“Like the Korean, Chinese and Singapore transformed their countries, we can also change this Kenya in our lifetime and make it go to the first world. Singapore was on same level as Kenya 60 years ago, today they are in the first world as we still struggle in the third world,” he said.
Ruto noted that there were indicators for a transformed economy under his regime, adding that in less than 20 years, Kenya will undertake development projects without having to rely on external debts.
He explained that Kenya has the resources and minds to effect change, citing the apparent success of the National Social Security Fund (NSSF), which he noted avails a pool of funds for investiment at the expense of external loans.
Ruto stated that reducing importation of basic commodities is also an indication of a thriving economy.
“Look at what we have done with the NSSF. In three years, we have double our savings. We had Ksh 320 billion, now we have Ksh 640 billion. What is going to happen in five, or ten or 20 years? We will not be borrowing money from outside but locally because we will be having enough savings.
“Look at what we have done in agriculture; we have cut down the importation of sugar by 70%, cut the importation of maize by 70%, because we have invested resources in production,” he further said.
