Kenya has successfully issued a new Eurobond valued at $1.5 billion (Sh238 billion) to refinance its initial Eurobond set to mature on June 24. The National Treasury disclosed that the new loan, split into three installments with a six-year weighted average life, is expected to mature in 2031, featuring a record-high interest rate of 10.37%, the highest rate ever offered by an African state.

The funds from the 2023 Eurobond will be used to buy back Kenya’s existing $2 billion Eurobonds due in 2024, with results of the tender offer expected on February 15. This move aligns with the government’s strategy to manage the maturity profile of the 2024 Eurobonds and handle debt liabilities.

To cover the rest of the 2024 Eurobond, Kenya plans to use a combination of its own money and support from various sources, like international organizations, banks, and other countries. This diverse approach is intended to keep the average interest rate on the country’s total debt relatively low, ensuring that the debt remains manageable over time.

Kenya has been actively seeking financial support from various sources, with the World Bank having pledged $4.5 billion. Out of this, they will receive $1.5 billion in March and April. In the past two months, Kenya has already received a little over $1 billion from the IMF and Trade Development Bank.

National Treasury PS Chris Kiptoo has expressed confidence in handling the Eurobond debt, stating that Kenya has secured its place in the international debt market.