The National Treasury has officially announced the successful pricing of a new USD 2.25 billion Eurobond.
The issuance was structured into two distinct tranches designed to smoothen the country’s maturity profile:
- 7-Year Note: USD 900.0 million priced at 7.875%. This note matures in 2034, with amortized payments scheduled in three equal installments across 2032, 2033, and 2034.
- 12-Year Note: USD 1.35 billion priced at 8.700%. This note matures in 2039, also amortizing in three equal installments in 2037, 2038, and 2039.
A primary objective of this fresh capital injection is the management of upcoming liabilities. The government has confirmed that proceeds will be deployed toward a USD 500.0 million buyback of two existing notes: the 8.0% 2032 and the 7.25% 2028. By coupling this buyback with the new issuance, the Treasury aims to refinance older debt while extending the weighted average life of its portfolio.
Beyond debt servicing, the remaining USD 1.75 billion is slated for general budget support, providing the government with the liquidity necessary to fund its Bottom-Up Economic Transformation Agenda (BETA).
The issuance comes on the heels of a credit rating upgrade by Moody’s, which moved Kenya’s sovereign rating to B3 from Caa1 with a stable outlook. This upgrade—driven by narrowing current account deficits and stronger foreign-exchange reserves—likely played a role in the “high-quality demand” reported by the Treasury.
However, the cost of this return to market remains a point of discussion. With coupons at 7.875% and 8.7%, this represents a relatively pricey refinancing in the current global environment. While it secures immediate liquidity and addresses near-term default risks, the long-term interest burden will be a key metric for analysts to watch.