Kenya’s Treasury Goes For New Ksh145 Billion Eurobond
The National Treasury is considering issuing Ksh145.6 billion in Eurobonds, equivalent to USD1.12 billion, as part of its external borrowing strategy for the fiscal year 2026/27.
The sovereign bond, one of several instruments used by Treasury Cabinet Secretary John Mbadi to close a growing budgetary shortfall, serves as the foundation for an ambitious financing plan for the upcoming budget cycle.
Kenya is planning to sell a foreign bond of $1.13 billion to help plug of its budget financing gap for the fiscal period beginning July https://t.co/Ic4UKt8fyJ— Bloomberg (@business) June 15, 2026
Kenya’s total borrowing mix for 2026/27 includes a variety of instruments, ranging from Eurobonds and Samurai Bonds to Development Policy Operations and project loans from multilateral lenders.
The Eurobond takes center stage largely since the Treasury views it as a way of refinancing the existing Ksh194 billion, roughly USD1.5 billion note maturing in 2031, which carries an expensive interest rate of 9.75 percent.
That 2031 date was floated in February 2024 to manage a Ksh259 billion or USD2.0 billion maturity deadline, with gradual repayments of the loan set to begin in 2029, leaving Treasury little room to delay a fresh refinancing move.
UPDATE: The updated 2026/27 Borrowing Plan factors in a Kes 145.628 billion Sovereign Bond issuance (US$1.12 billion).
· I suggests to us that National Treasury is keen on refinancing the 2031 US$1.5 billion 9.75% Note. The Note, which was floated in February 2024 as part of… https://t.co/uithlUqUoT pic.twitter.com/4b8w8RICXe— Julians Amboko (@AmbokoJH) June 15, 2026
In the current financial year, Kenya also tapped a Samurai Bond, a yen-denominated instrument popular in Japanese capital markets, raising Ksh62.5 billion under the supplementary estimates for 2025/26.
The Samurai Bond does not feature in the 2026/27 borrowing plan, suggesting it served as a one-off refinancing tool rather than a permanent fixture in Kenya’s debt management plan.
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On the multilateral front, Treasury has budgeted Ksh170.5 billion through a World Bank Development Policy Operation and Ksh21.3 billion via a similar facility from the African Development Bank (ADB) for 2026/27.
The World Bank’s Days Payable Outstanding (DPO) alone combines Ksh44 billion, or USD340 million from the International Bank for Reconstruction and Development (IBRD)and Ksh53 billion or USD410 million from the International Development Association (IDA), with board approval expected this month.
Project loans remain a significant part of the mix, with Project Loans Appropriations in Aid (Project Loans A-I-A) contributing Ksh75.3 billion and Project Loans Revenue adding Ksh116.3 billion to the 2026/27 external financing plan.
Taken together, net foreign financing for 2026/27 is projected at Ksh116.2 billion, a sharp decline from the Ksh225.8 billion recorded in last year’s supplementary budget, pointing to tighter external conditions.
Domestically, Treasury plans to raise Ksh1.03 trillion through government securities, even as total public debt obligations through the Consolidated Fund Services (CFS) hit Ksh2.56 trillion, piling pressure on an already stretched fiscal framework.
Kenya’s Treasury Goes For New Ksh145 Billion Eurobond
