Kenya successfully prices USD 2.25 billion dual-tranche Eurobond

Kenya successfully priced a new dual-tranche Eurobond totaling USD 2.25 billion, in a transaction that drew strong investor demand and underscored renewed confidence in the country’s economic outlook.

The issuance comprises USD 900 million 7.875 per cent notes due in 2034 and USD 1.35 billion 8.700 per cent notes due in 2039.

The 2034 notes will amortise in three equal instalments in 2032, 2033 and 2034, giving them a weighted average life of seven years. The 2039 notes will similarly amortise in three equal instalments in 2037, 2038 and 2039, resulting in a weighted average life of 12 years.

According to the Government, the order book significantly exceeded the amount on offer, reflecting high-quality demand from international investors.

Proceeds from the Eurobond will primarily be used to refinance existing public debt obligations, including a tender offer to purchase up to USD 150 million of the outstanding 7.250 per cent notes due February 2028 and up to USD 350 million of the outstanding 8.000 per cent notes due May 2032, inclusive of accrued interest.

Any remaining proceeds will support general budgetary needs. The results of the tender offer are expected to be announced on 26 February 2026.

Officials said the transaction forms part of Kenya’s broader strategy to smoothen its external debt maturity profile and proactively manage public debt liabilities, reducing refinancing pressures in the coming years.

The successful pricing follows a recent upgrade of Kenya’s sovereign credit rating by Moody’s, which raised the country’s rating to B3 from Caa1 and revised the outlook to stable. The agency cited reduced default risks, improved foreign-exchange reserves and a narrowing current account deficit.

The Government reaffirmed its commitment to prudent and transparent debt management, describing it as a key pillar of the Bottom-Up Economic Transformation Agenda (BETA) championed by President William Ruto.

Treasury Cabinet Secretary John Mbadi said Kenya values its continued partnership with global investors and remains focused on fiscal consolidation and sustainable economic growth.