The National Treasury says Kenya has successfully raised Ksh 193.8 billion ($1.5) through issuance of a new Eurobond.
Principal Secretary Dr Chris Kiptoo said part of the funds raised from international investors amounting to Ksh 129 billion($1b) has been used to pay the Eurobond which matures in 2028.
“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,” said Kiptoo.
Kiptoo said the new bond was issued in two parts with, one with seven year tenor at an interest rate of 7.875pc and the other 12 years tenor with 8.8pc interest. In total the bond attracts an interest of 8.7pc.
The amount which was raised from fund managers in the United States and the United Kingdom is expected to ease pressure on government’s loan repayment spending.
“The 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,” he added.
Treasury said it received bids totaling $7.5 billion which is five times the amount needed further signaling strong investor confidence.
