Foreign Investors Oversubscribe Kenya’s New Eurobond by 400% to $7.5 Billion in Debt Buyback Plan

Kenya has successfully raised $1.5 billion (Ksh.193.8 billion) through a new Eurobond issuance, and this will pave way for the government to pay off older, higher-cost debt earlier than planned.

Investor response to the issuance was overwhelmingly positive, inclined to a renewed global confidence in Kenya’s economy.

The Kenyan government had sought $1.5 billion but was oversubscribed at 400% to $7.5 billion.

Much of this support came from trusted international fund managers based in the United States and the United Kingdom, signaling that Kenya is viewed as a stable and attractive destination for investment despite broader geopolitical risks and trade tensions.

“It reflects the world’s restored faith in Kenya’s economic trajectory,” said the National Treasury in a statement.

Also Read: Yields on Kenya’s Eurobond up 12.6%, Highest Since November 2023

What Does it Mean

Kenya will since focus on national development priorities with reduced pressure from debt obligations, and more resources will be allocated toward key sectors such as infrastructure, including roads, healthcare, and education.

It is the third such proactive debt management initiative since 2024, positioning Kenya to continue building a resilient economy capable of weathering external challenges. The funds were sourced at a time when the country is seeking to manage borrowing more efficiently amid global economic uncertainties.

The Bond was issued ahead of the original schedule for the 2028 Eurobond, pointing to President William Ruto’s administration’s interest in handling fiscal responsibilities wisely.

It is a clever move by the Treasury Cabinet Secretary John Mbadi, to ease the burden on taxpayers, extend loan repayment periods, and create more fiscal breathing room for the government to manage its finances effectively.

The new financing was structured in two tranches to optimize costs and terms. A seven-year portion was issued at an interest rate of 7.875%, while a 12-year segment carried a rate of 8.8%.

Treasury CS John Mbadi