Kenya secures Ksh.193B loan, pays off Ksh.129B Eurobond early

Kenya has secured USD 1.5 billion (Ksh.193.8 billion) from international markets, a transaction that has also enabled the country to retire USD 1 billion (Ksh.129.2 million) of the 2028 Eurobond ahead of schedule.

In a statement issued on Friday, Treasury Principal Secretary Chris Kiptoo said this marks the third such successful transaction since 2024, underscoring the government’s commitment to prudent debt management.

“This is the third such transaction since 2024, and it shows the Government's firm commitment to managing debt more wisely, paying off loans on time, and protecting Kenyans from sudden repayment shocks,” Kiptoo said.

The USD 1.5 billion was raised in two parts: a 7-year loan at an interest rate of 7.875 percent and a 12-year loan at 8.8 percent.

Combined, this translates into a blended rate of 8.7 percent—one percentage point lower than what the country would have paid earlier in the year, according to PS Kiptoo.

“By securing this deal, the Government has also smoothened and lengthened loan repayments, giving Kenya more breathing space in managing its finances,” he stated.

The PS further noted that investor response to the issuance was strong, with bids amounting to over USD 7.5 billion (Ksh.969 million), five times more than the amount sought.

“Most of this support came from trusted international fund managers in the United States and the United Kingdom, showing that the world has renewed confidence in Kenya's economy,” he said.

“This success means Kenya will spend less on interest, ease pressure on taxpayers, and keep the economy stable while creating room to fund development priorities such as roads, health, and education.”