Kenya has successfully raised USD 1.5 billion (Ksh193.8 billion) from international markets to pay off part of the 2028 Eurobond ahead of schedule, easing concerns over debt repayment and providing taxpayers with some relief.

National Treasury Principal Secretary Chris Kiptoo confirmed the development in a statement posted on his X on Friday, October 3, 2025, describing the move as both timely and prudent.

“Kenya successfully raised USD 1.5 billion (Sh193.8 billion) at a lower cost from international markets to pay off part of the 2028 Eurobond ahead of schedule,” Kiptoo said, adding that the move will reduce taxpayers’ burden. “This prudent move eases pressure on taxpayers, boosts investor confidence, and creates fiscal space to fund key development priorities such as roads, health, and education,” Kiptoo Said.

The money was raised through two tranches: a 7-year loan at an interest rate of 7.875 per cent and a 12-year loan at 8.8 per cent. Combined, this resulted in Kenya achieving a better rate of 8.7 per cent, which is one percentage point lower than the country would have paid at the beginning of the year.

Breathing space

By securing this deal, Treasury noted that Kenya has not only lowered its borrowing costs but also restructured repayments, giving the economy more breathing space to manage its finances.

Investor appetite for the bond was strong, with the government seeking USD 1.5 billion but receiving offers worth over USD 7.5 billion, five times the required amount. Most of this support came from international fund managers in the United States and the United Kingdom, signalling renewed global confidence in Kenya’s economy.

This is the third successful Eurobond-related transaction since 2024, showing what the Treasury terms as the government’s commitment to managing debt more wisely, paying loans on time, and shielding Kenyans from sudden repayment shocks.

The National Treasury emphasised that this move will allow Kenya to spend less on interest, keep the economy stable, and at the same time create room to invest in critical sectors.

“This prudent move eases pressure on taxpayers, boosts investor confidence, and creates fiscal space to fund key development priorities such as roads, health, and education,” Kiptoo reiterated.

For ordinary Kenyans, the development means less risk of abrupt tax increases to cover urgent debt obligations and more hope that critical services such as hospitals, schools, and infrastructure will get better financing.

Kenya has faced mounting debt obligations in recent years, with concerns that Eurobond repayments could expose the economy to pressure. Treasury now hopes that early repayment of the 2028 Eurobond will calm markets, strengthen investor confidence, and free up resources for development.