NAIROBI, Feb 18 – Kenya has launched a $500 million debt buyback programme alongside plans to issue new longer-term dollar bonds, as the government moves to ease refinancing pressures and improve its sovereign debt maturity profile.
The buyback includes tenders of up to $350 million for Kenya’s 8% Eurobond due in 2032 and up to $150 million for its 7.25% bond maturing in 2028, according to a regulatory filing. The offer, which includes accrued interest, is scheduled to close on February 25.
The transaction will be financed through the issuance of new dual-tranche dollar-denominated bonds with weighted average maturities of approximately seven and 12 years. The move reflects a broader strategy to extend Kenya’s debt maturity timeline and reduce near-term repayment risks.
National Treasury of Kenya has increasingly adopted proactive liability management to stabilize the country’s debt profile. Finance Minister John Mbadi previously indicated that Kenya had room to further smooth its borrowing curve following successful market transactions last year aimed at refinancing maturing obligations.
The latest operation comes after a period of heightened financial stress in 2024, when concerns over Kenya’s debt sustainability triggered sovereign credit rating downgrades and placed pressure on the Kenyan shilling. Since then, authorities have taken steps to strengthen investor confidence and secure more sustainable financing conditions.
Kenya is now benefiting from renewed investor appetite for higher-yield emerging market debt, as global investors seek stronger returns amid shifting monetary conditions. Several African sovereigns have returned to international markets in recent months, reflecting improving sentiment toward frontier economies.
By repurchasing existing bonds and replacing them with longer-term instruments, Kenya aims to reduce refinancing risks, manage debt service costs more efficiently, and enhance long-term fiscal sustainability.
The move signals Kenya’s continued effort to restore financial stability, rebuild market confidence, and strengthen its position in global capital markets as it navigates evolving macroeconomic conditions.
