In a strategic financial move, the Kenyan government has successfully mobilized Ksh290 billion to address Eurobonds maturing in 2028 and 2032, thus alleviating pressure on the nation’s debt schedule.
On Friday, February 20, 2026, the Treasury announced that it raised funds from international markets through a new bond sale.
“The government of Kenya is pleased to announce the successful pricing of a new dual-tranche Eurobond issuance totaling $2.25 billion,” the statement indicated.
The funds will partially refinance existing debts due in 2028 and 2032 and help bridge the budget deficit as the country prepares for the 2026/2027 budget cycle.
Kenya joins several African nations, including Ivory Coast and Congo, in returning to international markets following recent improvements in borrowing conditions.
The Treasury reported issuing Ksh116 billion in seven-year bonds and Ksh168 billion in 12-year bonds, which drew significant investor interest.
“The Eurobond issuance attracted strong, high-quality demand, with the order book significantly exceeding the offered amount,” the Treasury noted.
This issuance aligns with the government’s strategy to streamline the maturity profile of Kenya’s external debt while proactively managing public debt liabilities.
The timing coincides with a slight improvement in global borrowing conditions, facilitating easier and more affordable access to international financing compared to previous years.
In related developments, credit rating agencies, including Moody’s, have expressed optimism in recent months, indicating a reduced near-term risk of default for Kenya despite its substantial debt levels.
Moody’s latest report highlighted improvements in Kenya’s external liquidity, a narrower current account deficit, and a more stable currency, which have collectively alleviated pressure on the country’s balance of payments and enhanced the government’s operational flexibility.
In January 2026, Moody’s upgraded Kenya’s rating to B3 from Caa1, citing diminished near-term default risk, while maintaining a stable outlook. Simultaneously, Fitch affirmed its B- rating with a stable outlook.
“This reflects an increase in investor confidence, following Moody’s recent upgrade of Kenya’s sovereign rating to B3 and the revision of the outlook to stable,” the statement confirmed.
The upgrade signifies a decline in near-term default risk, bolstered by stronger foreign reserves and improved access to international capital markets.
Although a Caa1 rating still indicates high credit risk, suggesting vulnerability to economic shocks and potential difficulties in meeting debt obligations during challenging periods, the upgrade to B3 marks a significant step toward reducing default risk, even as Kenya remains distant from investment-grade status.
Moody’s observed that Kenya’s re-entry into international bond markets has facilitated smoother debt repayment schedules and alleviated refinancing pressures.
By the end of 2025, foreign reserves had increased to Ksh1.57 trillion, or 5.3 months of import cover, up from Ksh1.2 trillion in 2024.
