Nairobi — Kenya has secured a USD 1.5 billion (Ksh193.8 billion) loan from international markets, using part of the proceeds to retire USD 1 billion (Ksh129.2 billion) of the 2028 Eurobond ahead of schedule. The transaction, announced on Friday, October 3, marks a significant step in the country’s debt management strategy.
Treasury Principal Secretary Dr. Chris Kiptoo hailed the deal as a demonstration of the government’s resolve to manage public 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 said.
The financing was raised through a two-part issuance: a 7-year loan at 7.875% interest and a 12-year loan at 8.8%, resulting in a blended rate of 8.7%. This is about one percentage point lower than what Kenya would have paid earlier in the year, a development Kiptoo said would “smoothen and lengthen loan repayments, giving Kenya more breathing space in managing its finances.”
Investor appetite proved strong, with the issuance attracting over USD 7.5 billion (Ksh969 billion) in bids—five times the amount sought. According to Kiptoo, the overwhelming demand was driven by robust support from international fund managers, particularly in the United States and the United Kingdom. “It signals renewed global confidence in Kenya’s economy,” he noted.
The move is expected to ease pressure on Kenya’s external obligations by restructuring maturities falling due in 2027, while also allowing the government to balance development financing needs with sustainable borrowing.
Analysts say the transaction underscores Kenya’s determination to stabilize its debt portfolio, a critical step as the country navigates fiscal pressures and works to safeguard long-term economic growth.
