Kenya’s attempt to buy back a portion of its 2019 Eurobond, valued at Ksh.116.2 billion ($900 million), was met with a lukewarm response from investors.
The government offered to repurchase the debt early using proceeds from a new $725 million (Ksh.93.7 billion) Eurobond issued the previous week at a 9.5% interest rate.
However, investors tendered only 64.4% of the targeted amount, or $579.6 million (Ksh.74.9 billion), leaving an unsold balance of approximately Ksh.41 billion ($320 million).
Also Read: Kenya to Borrow $1.5 Billion in New Debt While Buying Back $900 Million
This undersubscription means Kenya will need to continue servicing the remaining debt until its maturity in 2027, at the original 7% coupon rate.
The lack of enthusiasm from investors has raised concerns about Kenya’s creditworthiness, particularly as the country faces a heavier debt burden in 2025, with $1.85 billion in Eurobond repayments due.
Analysts suggest this could signal challenges in Kenya’s debt management strategy, potentially increasing refinancing pressures and complicating fiscal planning amid a tight economic environment.
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