Kenya has launched a $500 million (Sh64.5 billion) Eurobond buyback programme in a move that underscores the country’s commitment to prudent debt management and financial stability. The liability management exercise, announced by the National Treasury, targets portions of the sovereign’s external bonds due in 2028 and 2032, reflecting a proactive strategy to ease repayment pressures and reinforce investor confidence in the economy.
Under the plan, the Government is offering to repurchase up to $350 million of its 8 percent amortizing notes due 2032 and up to $150 million of its 7.25 percent notes due 2028. The total cash outlay, inclusive of accrued interest payments, is capped at $500 million. Officials say the exercise is designed to actively manage Kenya’s external debt profile while lowering refinancing risks in the medium term.
The 2032 notes are being targeted at 105.5 percent of par value, while the 2028 notes are priced at 103.5 percent, each plus accrued interest. By offering a premium, the Treasury aims to incentivize bondholders to participate in the tender, allowing the Government to retire part of its obligations early and smoothen future repayment peaks.
The buyback has been launched alongside a planned issuance of new U.S. dollar-denominated notes, signaling a refinancing approach that replaces near-term pressure with longer-dated and potentially better-structured debt. According to the Treasury, all notes purchased under the offer will be cancelled and not re-issued, helping to reduce outstanding liabilities and improve the maturity structure of Kenya’s external borrowing.
The tender offer opened on February 18 and will close on February 25, with settlement expected on March 3, subject to the successful issuance of the new notes. Both the 2028 and 2032 securities are listed on the London Stock Exchange and Euronext Dublin, highlighting Kenya’s continued engagement with global capital markets.
This latest move follows Kenya’s 2024 partial repurchase of its $2 billion Eurobond, a transaction widely viewed as a turning point in easing market concerns over the country’s external repayment capacity. The current operation builds on that momentum and forms part of broader fiscal reforms under an ongoing programme with the International Monetary Fund focused on fiscal consolidation and debt sustainability.
The buyback signals Kenya’s growing resilience in meeting its debt and financial obligations, demonstrating the Government’s ability to mobilize resources, access markets, and actively restructure liabilities before they become a risk. Such pre-emptive steps help stabilize the shilling outlook, reduce borrowing costs over time, and strengthen the country’s creditworthiness among international investors.
More broadly, the initiative reflects a shift toward disciplined public finance management, where debt servicing is approached through forward planning rather than crisis response. If sustained, this strategy could enhance macroeconomic stability, improve fiscal space for development priorities, and reaffirm Kenya’s standing as a reliable borrower in international markets while safeguarding long-term economic growth.
