Amidst Debt crisis: Kenya secures another Sh193.8 billion Eurobond

Kenya has raised $1.5 billion (Sh193.8 billion) from international investors in a new Eurobond issue aimed at reducing borrowing costs and stabilizing the economy amid mounting debt challenges.

According to the National Treasury, the funds were secured through two tranches, a seven-year loan at 7.875% interest and a 12-year facility at 8.8%, averaging an 8.7% borrowing cost, which is one percentage point lower than initial projections.

Treasury Principal Secretary Chris Kiptoo said the move underscores the government’s commitment to prudent debt management and protecting citizens from repayment shocks.

Part of the proceeds has already been used to retire $1 billion (Sh129 billion) of Kenya’s 2028 Eurobond ahead of schedule, a step aimed at reducing future interest obligations and spreading repayment timelines for better fiscal flexibility.

The bond issue drew strong investor interest, with bids exceeding $7.5 billion, or five times the amount sought — signaling renewed global confidence in Kenya’s economic outlook.