The Kenya has announced a $500 million bond buyback, marking its return to international capital markets to manage external debt and improve its maturity profile, according to Reuters.
Under the liability management plan, holders of the 8 percent Eurobonds maturing in 2032 are invited to tender up to $350 million of principal, while holders of 7.25 percent notes due 2028 may tender up to $150 million, with total participation capped at roughly $500 million, including accrued interest, Business Today Kenya noted.
To fund the buyback, Nairobi plans to issue new U.S. dollar‑denominated bonds in two tranches with average maturities of approximately seven and 12 years. Proceeds from these new issuances will support the tender offer, helping to extend debt maturities and reduce near-term repayment pressures.
The tender offer is scheduled to close on February 25, 2026, with settlement expected by March 3, 2026. All repurchased notes will be cancelled, which Nairobi said will help optimise its external debt profile and lower refinancing risks.
Kenya’s move reflects a broader trend among African sovereigns taking advantage of favourable global borrowing conditions to restructure debt more sustainably, improve fiscal stability, and strengthen investor confidence, as highlighted by Business Day Africa.
