The government has successfully raised USD1.5 billion (Ksh193.8 billion) from international investors, a move that has enabled it to pay off part of the 2028 Eurobond ahead of schedule.
Treasury Principal Secretary Chris Kiptoo on Friday confirmed that the funds were secured at a lower cost compared to earlier in the year, giving the country more room to manage its debt obligations.
Out of the money raised, USD1 billion (Ksh129.24 billion) was used to settle the Eurobond, easing the burden of future repayments.
''The Government is pleased to announce that it has successfully raised USD1.5 billion (Ksh193.8 billion) from international investors and, at the same time, paid off USD1 billion of the 2028 Eurobond ahead of schedule,'' read part of the statement by Kiptoo.
''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.''
According to the Treasury, the deal was structured into two parts: a seven-year loan at an interest rate of 7.875 per cent and a twelve-year loan at 8.8 per cent
In total, this translated to an effective rate of 8.7 per cent, which is one per cent lower than what Kenya would have paid earlier in the year.
Additionally, Kiptoo noted that the transaction marked the third such operation since 2024, demonstrating the government’s commitment to managing public debt more prudently while protecting Kenyan taxpayers from sudden repayment shocks.
Adding that: ''By securing this deal, the Government has also smoothed and lengthened loan repayments, giving Kenya more breathing space in managing its finances.''
Further, the PS revealed that the response from investors was overwhelming, with offers amounting to more than USD7.5 billion (Ksh969.3 billion), five times the targeted figure.
Most of the interest came from international fund managers in the United States and the United Kingdom, which the Treasury said reflected renewed global confidence in Kenya’s economy.
"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," the statement added.
The loan is expected to ease immediate pressure on the budget and create predictability in servicing loans, an area that has, in recent years, been a source of concern for the country’s economic managers, with Kenya's overall debt ballooning.
