The National Treasury has announced the acquisition of a KSh 194 billion loan as part of its strategy to manage the country’s debt.
Speaking on Thursday, February 27, Treasury Cabinet Secretary John Mbadi stated that the loan, obtained through a Eurobond issuance, carries a fixed interest rate of 9.5 percent and will be repaid in three instalments between 2034 and 2036.
Mbadi further revealed that the bond attracted an oversubscription of KSh 646 billion from investors, signaling strong market confidence in Kenya’s economic policies.
According to the CS, proceeds from the new Eurobond will be used to refinance Kenya’s external debt, including a planned buyback of a KSh 166 billion Eurobond maturing in 2027. The final buyback amount will be determined based on the response to an ongoing Tender Offer, with results expected on March 3, 2025.
“The proceeds from the 2036 Eurobond will be directed towards refinancing existing external obligations, ensuring a smooth debt repayment schedule,” Mbadi noted.
He emphasized that this move aligns with the government’s plan to manage public debt sustainably and extend the repayment period of external loans.
Additionally, Mbadi highlighted that Kenya’s ability to access international capital markets demonstrates investor confidence in the country’s fiscal management.
“Prudent debt management remains a key pillar of the Bottom-Up Economic Transformation Agenda (BETA) championed by President William Ruto. This latest transaction is a step forward in advancing that agenda,” the CS stated.
This development comes months after Kenya successfully settled a Eurobond repayment ahead of schedule. The KSh 324 billion Eurobond, which matured in June 2024, was initially acquired in 2014 under former President Uhuru Kenyatta’s administration. Its early repayment boosted investor confidence and supported the local currency.
