The Kenyan government announced on February 18, 2026, a tender offer for its US$1.2 billion Eurobond due 2032 and US$1 billion Eurobond due 2028, alongside plans to issue new dollar-denominated debt in one or more series, officials said.
Finance Minister John Mbadi said last week that the move is aimed at smoothing the country’s debt repayment schedule and paying off maturing obligations. Kenya previously issued two Eurobonds in February and October 2025 to buy back bonds coming due, after concerns over the government’s ability to service a June 2024 Eurobond triggered a spike in yields and pressure on the shilling.
The current tender offer, which expires on February 25, 2026, is part of a broader strategy to manage external debt maturities while maintaining market confidence. The government intends to issue new dollar-denominated bonds to replace maturing debt, ensuring orderly repayment and supporting fiscal and monetary stability.
By actively managing its Eurobond portfolio, Kenya seeks to reduce refinancing risk, extend debt maturities, and reassure investors, as it continues to navigate fiscal pressures in the East African region.
Kenya has relied on Eurobond issuances over the past decade to finance budget deficits and infrastructure development, supplementing domestic borrowing. External debt, including dollar-denominated Eurobonds, forms a significant portion of Kenya’s public debt, making debt management and refinancing critical to maintaining fiscal stability and investor confidence.
In 2024 and 2025, the government faced challenges in rolling over maturing Eurobonds. Concerns about its ability to repay the June 2024 Eurobond led to a spike in bond yields and depreciation of the Kenyan shilling. In response, Kenya conducted buyback operations in February and October 2025, issuing new Eurobonds to replace maturing obligations and smooth repayment schedules.
Eurobond tender offers, like the current one for the 2028 and 2032 bonds, allow Kenya to repurchase or exchange outstanding debt at market prices, reducing refinancing risk and managing interest costs. Such operations also help stabilize investor sentiment, as they signal proactive debt management and commitment to honoring obligations.
Kenya’s Eurobond programme forms part of broader debt management policies overseen by the Ministry of Finance of Kenya, which include monitoring currency exposure, balancing domestic and external borrowing, and ensuring debt sustainability. The country continues to explore options for new dollar-denominated issuances to replace maturing debt, support development financing, and maintain confidence among international creditors.
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These measures are particularly important for East Africa’s largest economies, where external debt markets provide access to long-term financing but also expose governments to global interest rate shifts, currency fluctuations, and investor risk perceptions. Kenya’s current tender offer reflects a strategy of active debt management, risk mitigation, and fiscal prudence in a challenging macroeconomic environment.
