By Wamuzi News Ke The Kenyan government has pulled off a jaw-dropping Eurobond deal worth a staggering Ksh193 billion (approx. $1.5 billion) — a bold maneuver that caught many by surprise!
Sources close to the National Treasury confirmed that two international banking giants orchestrated the high-stakes transaction, allowing Kenya not only to raise new capital but also to strategically wipe out Ksh74.8 billion ($579 million) of its older Eurobond debt — a bond that was due to mature in 2027!
This dramatic prepayment means Kenya has effectively ambushed the debt markets, seizing the chance to buy back a chunk of its looming obligations years in advance.
Financial experts are calling it a daring attempt to dodge future repayment stress and showcase fiscal discipline — but not without raising eyebrows.
The new Eurobond, which matures in 2036, will be repaid in equal slices over the last three years before maturity. With a 9.5% annual coupon and a 9.95% yield, the government seems to be playing a high-risk, high-reward game — aiming to keep its financial ship afloat amidst growing fears of a debt crisis.
Investor interest reportedly surged, giving the Treasury room to inflate the bond size beyond initial projections and score better terms than anticipated.
Still, this aggressive borrowing spree is bound to trigger debate — is this smart planning or just another layer in Kenya’s towering debt cake?Let’s not forget: Kenya’s past Eurobond journey is far from squeaky clean.
Since 2014, the country has issued a whopping Ksh1 trillion ($8.35 billion) in Eurobonds — but only one has been fully repaid so far. The rest hang like a shadow over the economy.
The original 2014 Eurobond — Kenya’s debut in the global bond market — brought in Ksh355 billion ($2.75 billion), but its legacy is marred by accusations of misuse, missing funds, and multiple investigations by Parliament and the Auditor General.
Even the 2019 Eurobond, split into a 7-year and 12-year bond worth a total of Ksh271 billion ($2.1 billion), was issued to refinance existing debts.
That’s right — debt being used to pay off old debt.As the numbers climb and concerns over debt sustainability mount, Kenyans are left asking: How deep into the rabbit hole is the Treasury willing to go?
Is this clever financial engineering — or a ticking time bomb?
Stay with Wamuzi News for real-time updates as we unravel this massive Eurobond gamble that could shape Kenya’s financial future.
Cha-cha