The government has announced the successful pricing of a Sh 93.5 billion ($1.5 billion) Eurobond as part of its Liability Management Strategy.

Treasury Cabinet Secretary John Mbadi, in a statement, confirmed that the bond, which carries a 9.5 per cent coupon rate, will be repaid in three equal instalments in 2034, 2035, and 2036, with a weighted average life of 10 years.

According to Mbadi, investor demand for the bond was strong, with the order book exceeding Sh645 billion ($5 billion).

He stated that the proceeds would be used to refinance existing external debt, including the planned buyback of Kenya’s Sh116.1 billion ($900 million) Eurobond maturing in 2027.

The final amount for the buyback, he said, will be determined based on demand in the ongoing Tender Offer, with results expected on 3rd March 2025.

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“This transaction follows the successful issuance of the 2031 Eurobond in February 2024 and the full repayment of the 2024 Eurobond. It aligns with the Government’s strategy to smoothen the maturity profile of Kenya’s external debt and proactively manage public debt liabilities,” Mbadi stated.

He further emphasised that the issuance reflects continued investor confidence in Kenya’s economic policies and financial management.

“Kenya’s continued successes in the international capital markets underscores strong investor confidence in the country’s economic management. The Government appreciates the strong partnership with investors and remains committed to prudent and sound public debt management,” he added.

The latest development comes as Kenya continues to navigate its external debt obligations, with the government prioritising sustainable borrowing and strategic refinancing to ease future repayment pressures.