Kenya has successfully priced a USD 2.25 billion (Sh290.76 billion) dual-tranche Eurobond, comprising USD 900 million (Sh116.3 billion) due in 2034 and USD 1.35 billion (Sh174.45 billion) due in 2039, in a move aimed at strengthening its debt management strategy.
The National Treasury said the proceeds will refinance existing obligations, including a tender offer for the country’s 2028 and 2032 notes, while supporting general budgetary needs.
In a press release issued on February 20, 2026, the Government announced the “successful pricing of a new dual-tranche Eurobond issuance totalling USD 2.25 billion.”
The first tranche consists of USD 900 million (Sh116.3 billion) 7.875 per cent notes due in 2034, amortising in three equal instalments in 2032, 2033, and 2034, resulting in a weighted average life of seven years.
The second tranche comprises USD 1.35 billion (Sh174.45 billion) 8.700 per cent notes due in 2039, amortising in three equal instalments in 2037, 2038, and 2039, with a weighted average life of 12 years.
The Treasury said the Eurobond issuance attracted “strong, high-quality demand, with the order book significantly exceeding the offered amount,” signalling renewed investor appetite for Kenya’s sovereign paper.
According to the statement, the proceeds will be used to refinance existing public debt obligations, including the Government’s tender offer to purchase up to USD 150 million (Sh19.38 billion) of the outstanding 7.250 per cent Notes due in February 2028 and up to USD 350 million (Sh45.23 billion) of the outstanding 8.000 per cent Notes due in May 2032, inclusive of accrued interest.
“Any remaining proceeds will support general budgetary needs,” the statement noted, adding that tender offer results will be announced on February 26, 2026.
The issuance, the Government said, aligns with its strategy “to smoothen the maturity profile of Kenya’s external debt and proactively manage public debt liabilities.”
It also reflects improving investor confidence following Moody’s recent upgrade of Kenya’s sovereign rating to B3 from Caa1 and revision of the outlook to stable, citing reduced default risks, stronger foreign-exchange reserves, and a narrower current account deficit.
The National Treasury reaffirmed its commitment to “prudent, transparent, and effective debt management,” describing it as “an essential pillar of the Bottom-Up Economic Transformation Agenda (BETA)” championed by President William Ruto.
