March 3, 2025 – The Kenyan government has successfully priced a $1.5 billion Eurobond with a 9.5% coupon rate, marking a significant move in its financial strategy. The bond will be amortized in three equal installments in 2034, 2035, and 2036, with a weighted average life of 10 years. This issuance is part of the government’s broader liability management strategy aimed at refinancing existing debt and maintaining macroeconomic stability.
The issuance comes at a time when Kenya is seeking to balance its debt obligations while ensuring sustainable economic growth. According to the National Treasury, proceeds from the Eurobond will be used to manage maturing debts, enhance fiscal stability, and support key development projects.
Speaking about the issuance, Treasury officials highlighted that the pricing reflects investor confidence in Kenya’s economic outlook despite global financial uncertainties. The demand for the bond was robust, with significant interest from international investors, signaling continued trust in Kenya’s long-term economic prospects.
Financial analysts have noted that while the 9.5% coupon rate is relatively high, it remains competitive given the current global economic climate and Kenya’s sovereign risk profile. The government has assured that its debt management strategy will focus on reducing debt servicing costs and optimizing the country’s debt portfolio.
The Eurobond issuance aligns with Kenya’s broader fiscal policies, which include increased revenue collection efforts, expenditure rationalization, and policies aimed at boosting economic productivity. Market experts suggest that prudent utilization of the proceeds will be key to ensuring the country maintains a sustainable debt trajectory.
Kenya’s successful entry into the international bond market underscores its commitment to fiscal responsibility and economic resilience. Moving forward, stakeholders will be closely monitoring the impact of this move on the country’s debt sustainability and overall economic performance.
