Kenya is considering buying back as much as $500 million of its outstanding Eurobonds as part of a broader strategy to smooth debt repayments, reduce refinancing risks and take advantage of improving investor appetite for African sovereign debt, according to Bloomberg.
Under the proposal, East Africa’s largest economy would repurchase part of its outstanding international bonds during the 2026/27 fiscal year while simultaneously issuing a new US dollar-denominated bond to finance the transaction. The final amount repurchased will depend on investor demand, with any excess proceeds expected to be used for budget financing.
If completed, the transaction would mark Kenya’s fourth external debt buyback in two years, according to Nairobi-based financial services firm Mwango Capital, highlighting the government’s increasingly active approach to managing its external debt obligations.
The proposed transaction would involve repurchasing outstanding Eurobonds while issuing new dollar-denominated debt to extend maturities and reduce near-term refinancing pressure, a strategy that has become more attractive as borrowing costs ease and investor appetite for African sovereign debt improves.
The move also reflects a broader trend among African sovereigns seeking to actively manage their debt portfolios. Angola announced plans in May to repurchase Eurobonds maturing in 2028 and 2029, while the Republic of Congo earlier bought back part of the bonds it issued in November at what was then the world’s highest sovereign borrowing cost. Related News World Cup: England, Argentina renew rivalry 40 years after Maradona's 'Hand of God' Lagos leads continental growth, reclaims spot on Africa’s top 10 busiest airports list AFRICA FINANCE IN BRIEF: Financial map shifts as growth meets new risks
