Kenya has opened a tender offer to repurchase its entire US$ 1.0Billion (KSh 129.3Billion) Eurobond due 2028, offering holders US$ 1,037.50 (KSh 134,090) per US$ 1,000 in principal plus accrued interest.
- •The buyback is part of the Treasury’s plan to smooth external debt maturities and reduce refinancing risk.
- •The 7.25% notes, listed in London and Dublin, mature on 28 February 2028.
- •By targeting the 2028 issue now, the Treasury is moving early to spread out repayment obligations that would otherwise fall as a single US$ 1.0Billion bullet payment in three years.
Liability Management Strategy
The operation mirrors Kenya’s debt switch in early 2025, when part of the US$ 2.0Billion Eurobond maturing that year was refinanced.
Kenya has about US$7.8Billion (KSh 1.01Trillion) in outstanding Eurobonds across maturities from 2027 to 2048. The government faces domestic bond redemptions of KSh 495Billion this year, rising to KSh 822Billion in 2026.
Authorities have also tapped alternative markets, raising ¥25Billion (US$ 169Million, KSh 21.8Billion) in Samurai bonds in August 2025, and are weighing Panda and sustainability-linked bonds to diversify external funding.
Fiscal Pressures and Debt Targets
Treasury has pledged to bring down the debt-to-GDP ratio from 58.1% in FY2023/24 to 52.8% by FY2027/28. Servicing costs remain elevated, keeping pressure on liquidity and reserves.
Citigroup Global Markets and Standard Bank are joint dealer managers for the buyback, with Citibank London acting as tender agent. Kenya has signaled that investors who tender notes may receive priority in allocations of the new issue, though the Treasury retains full discretion over final decisions.
- •The offer runs until 5:00 p.m. New York time on 9 October, with results due on 10 October and settlement scheduled for 14 October 2025.
- •The transaction is conditional on the successful issuance of new U.S. dollar bonds, which will finance the repurchase.
