Kenya has successfully concluded a tender offer for its 2028 Eurobond, repurchasing US$628.44 million (Ksh. 81.2 billion) of the notes. This liability management exercise was financed using proceeds from the country’s recent US$1.5 billion (Ksh 193.9 billion) dual-tranche Eurobond issuance on the international markets.
The buyback effort, which was launched on October 2, 2025, and closed on October 9, saw the government accept tenders for more than 60% of the US1,037.50 per US$1,000 of the bond’s principal amount, plus accrued interest. All valid tenders received were accepted in full, with no proration applied.
The repurchase is a key component of Kenya’s broader debt management plan designed to smooth its Eurobond maturity profile and mitigate refinancing risks associated with upcoming large debt redemptions. By retiring a significant portion of the 7.25% Notes due 2028, the National Treasury has eased near-term external debt pressures.
This strategy aligns with the government’s fiscal consolidation efforts supported by the International Monetary Fund (IMF) and follows similar liability management operations executed earlier on Kenya’s 2027 and 2032 Eurobonds.
The repurchased notes will be officially cancelled and permanently retired, reducing Kenya’s outstanding debt. Following this transaction, a remaining principal amount of US$371.6 million (Ksh. 48.1 billion) of the 2028 notes will stay outstanding until their original maturity date.
Citigroup Global Markets Limited and The Standard Bank of South Africa Limited served as the dealer managers for the tender offer, with Citibank N.A., London Branch acting as the tender agent. Settlement for the accepted notes is scheduled for October 14, 2025, according to an official Treasury notice.