Kenya Acquires Ksh194 Billion Loan to Repay 2027 Eurobond

The government, through the National Treasury, has announced the acquisition of a new KSh194 billion loan as part of its debt liability management strategy.

Addressing the press on Thursday, February 27, Treasury Cabinet Secretary John Mbadi disclosed that the multi-billion-shilling loan, which has a fixed interest rate of 9.5 per cent, would be repaid in three instalments in 2034, 2035, and 2036.

While making the announcement, the finance minister revealed that the loan, acquired through a Eurobond issuance, had received an oversubscription amounting to KSh646 billion from investors.

According to CS Mbadi, proceeds from the sale of the new Eurobond will be used to service the Ksh116 billion Eurobond which is set to mature in 2027.

“Proceeds from the 2036 Eurobond will be used to refinance existing external debt including the planned buyback of Kenya’s Ksh166 billion ($ 900 million) Eurobond maturing in 2027,” CS Mbadi revealed.

“The final amount for the buyback will be determined based on demand in the ongoing Tender Offer. Results are expected on March 3, 2025,” the finance minister added.