Kenya has raised $2.25 billion from international bond markets to finance a debt buyback, joining a growing wave of African governments returning to global capital markets as borrowing costs ease and investor appetite improves.
East Africa’s largest economy issued $900 million in seven-year notes at a yield of 8.1 percent and $1.35 billion in 12-year bonds at 8.95 percent, according to a person familiar with the transaction cited by Bloomberg. The person asked not to be identified because the details are private.
The deal underscores how African issuers are moving earlier than expected in 2026 to lock in cheaper external financing as emerging-market spreads narrow against US Treasuries.
The country had already tested the Eurobond market twice last year, signalling a steady reopening of access after a prolonged period of tight global financial conditions.
Across the continent, countries including Benin, Ivory Coast, Cameroon and the Republic of Congo have also returned to the dollar bond market, marking what analysts see as a decisive reopening of the Eurobond window after nearly two years of elevated borrowing costs.
Kenya plans to deploy the proceeds for budget support and liability management, including buyback offers of up to $350 million — plus accrued interest — on its eight percent amortising notes due 2032 and up to $150 million on its 7.25 percent bonds maturing in 2028.
Secondary market movements were mixed following the announcement. According to Bloomberg data, the yield on Kenya’s 2028 notes rose six basis points to 6.04 percent on Thursday, while the 2032 securities climbed six basis points to 7.15 percent.
Ratings agencies have recently struck a cautiously improving tone on African sovereign credit. S&P Global Ratings said this month that the average African sovereign rating is at its strongest level since late 2020, supported by reforms and firmer growth, although it warned that improvements in credit metrics will take time to materialise.
Moody’s in January upgraded Kenya to B3 from Caa1, citing reduced near-term default risk, while maintaining a stable outlook. Fitch Ratings similarly affirmed Kenya at B- with a stable outlook.
Still, risks remain. Ebury Partners UK said Kenya’s relative economic resilience and continued access to international funding could provide short-term support for the shilling. However, it cautioned that weak tax mobilisation and a heavy public debt burden continue to cloud the medium-term outlook, underscoring the need for sustained fiscal discipline.
