Kenya has initiated a fresh Eurobond buyback, seeking to repurchase a Sh116.7 billion  (approximately $901.8 million) note from its 2019 bond issuance.

The National Treasury, in a statement issued on Tuesday, confirmed that proceeds from a new Eurobond would be used to offset part of the outstanding debt.

According to the Treasury, investors holding the 2019 note will be given the first opportunity to participate in the buyback.

“The Republic intends to give preference to those noteholders who, before such allocations, have tendered or indicated to a deal manager their firm intention to tender,” the Treasury stated.

The process, which opened on Monday, will run until Monday next week, with the funds raised expected to refinance the bond and avert a repayment scheduled for May 2025.

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The paper being targeted matures in 2036.

This marks Kenya’s second such move, following a similar buyback in February 2024, when the government raised $1.48 billion to settle a Eurobond ahead of its maturity.

Meanwhile, a recent Treasury report projects a gradual decline in the country’s public debt-to-GDP ratio, which currently stands at 64 per cent.

The figure is expected to drop below 60 per cent by 2028, with fiscal consolidation measures playing a key role in debt management.

As of the end of 2024, Kenya’s total public debt had reached Sh10.6 trillion (approximately $81.8 billion), a surge driven by increased borrowing and currency fluctuations.