- Kenya announced plans to repurchase up to $500 million of its existing bonds to ease financing pressures.
- Buy-back tenders include $350 million of the 2032 bond and $150 million of the 2028 bond.
- The government will issue new dollar-denominated bonds with maturities of seven and 12 years to fund the operation.
- The initiative follows past market stress, a credit rating downgrade, and pressure on the shilling.
On Wednesday, Kenya moved to manage its debt obligations by offering to buy back a total of $500 million of existing government bonds. Finance Minister John Mbadi said the strategy would help smooth the country’s borrowing curve, building on earlier measures to handle maturing debt.
The buy-back includes $350 million of the 8% bond due in 2032 and $150 million of the 7.25% bond maturing in 2028. The offer, which covers accrued interest, will remain open until February 25.
To fund the buy-back, Kenya plans to issue new dollar-denominated bonds in a dual-tranche structure, with weighted-average maturities of seven and 12 years. The government aims to extend its debt profile and reduce short-term repayment pressures.
Mbadi noted that such proactive measures are essential after last year’s market turbulence, which saw investor concerns trigger a credit rating downgrade and weaken the shilling.
Kenya is not alone in leveraging favourable investor appetite for high-yield emerging market debt. Earlier this month, the Republic of Congo executed a similar bond buy-back, while the Ivory Coast issued a 14-year dollar bond on Wednesday.
Analysts view these moves as part of a broader trend where African governments are refinancing maturing debt while taking advantage of strong global demand for high-yield bonds.
With the market closely watching, Kenya’s buy-back and new bond issuance aim to stabilise debt servicing costs and restore investor confidence. Officials hope the strategy will help manage both domestic and external obligations efficiently while reducing future refinancing risks.
