Kenya’s Eurobonds has hit a staggering Sh1.368 trillion (equivalent to $10.61 billion). This follows the sale of the $2.25 billion dual-tranche Eurobond that was conducted in the month of February 2026. This sale is equivalent to Sh290.2 billion. It included a paper worth Sh116.1 billion ($900 million) that was priced at a rate of 7.875 percent. This paper will mature in three equal installments starting in 2032, then 2033, and 2034.
The sale also included a second paper worth Sh174.1 billion (equivalent to $1.35 billion) that was priced at a rate of 8.7 percent. This second paper will also mature in three equal instalments, but in the years 2037, 2038, and 2039.
Prior to this new sale, Kenya’s Eurobonds stood at Sh1.132 trillion which was equivalent to $8.78 billion.
According to releases from the National Treasury, the newly issued Eurobonds were used to repay Sh53.5 billion (equivalent to $415.35 million) in early redemptions. This included sovereign notes worth Sh11.6 billion and Sh41.9 billion which were maturing in the years 2028 and 2032 respectively.
Strikingly, Kenya was only requiring less than a fifth of the Sh290.2 billion that it raised from the new Eurobonds for the buyback. However, the National Treasury went into the market seeking to raise more than what was required, and stated that it would use the balance on other budgetary requirements.
Ironically, the buyback did not meet the target of Sh64.5 billion that the National Treasury was aiming for, managing to net Sh53.6 billion.
In its offer, Kenya had presented a price premium of up to 5.5 percent to buy back SH64.5 billion of the two Eurobonds.
“The Republic [of Kenya] will pay for the notes… a purchase price equal to: $1,055 per $1,000 in principal amount of 2032 notes and in the case of the 2028 notes, $1,035 per $1,000 in principal amount,” a notice that was published by the London Stock Exchange in regard to the bond buyback call stated. The bonds were listed at this stock exchange.
This was not the first time that the government of President William Ruto was seeking to buyback Eurobonds. In February 2024, the National Treasury conducted its first sovereign buyback of Sh193.5 billion (equivalent to $1.5 billion) to partially refinance the Sh258 billion (equivalent to $2 billion) 10-year tranche from 2014, which paid interest at a rate of 6.875 percent.
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To fund this buyback, the National Treasury issued a fresh six-year paper worth $1.5 billion at a rate of 9.75 percent. This paper will mature in February 2031.
