Kenya has launched a tender offer to repurchase its entire USD 1 billion (Ksh 129,240,000,000) 7.25% Eurobond due 2028, in a move aimed at easing pressure on its external debt profile.  

In a press release published on Wednesday, October 2, the government stated that it is offering to buy the notes at a purchase price of $1,037.50 per $1,000 principal amount, representing 103.75% of the aggregate principal amount, plus accrued interest.

Under the offer, bondholders are invited to tender their notes at $1,037.50 per $1,000 principal amount, together with accrued interest.

“The Republic of Kenya (the “Issuer” or the “Republic”) today announces its invitation to eligible holders (subject to the offer restrictions referred to below) of its outstanding U.S.$1,000,000,000 7.250 per cent. Notes due 2028 (the “Notes”) to tender Notes for purchase by the Issuer for cash (the “Offer”),” read part of the offer notice.

“The Offer is made on the terms and subject to the conditions set out in the Tender Offer Memorandum dated 2 October 2025 (the “Tender Offer Memorandum”), including the invitation and distributions restrictions set out therein.”

The offer opened on October 2 and will close on October 9, 2025. Results are expected on October 10, with settlement scheduled for October 14.

However, the timeline may be extended, reopened, amended, or terminated by Kenya at its sole discretion, as provided in the Tender Offer Memorandum.

The transaction is conditional on Kenya successfully issuing new dollar-denominated bonds to fund the buyback.

Officials say the move is part of a proactive debt management strategy aimed at smoothing the country’s external debt maturities and reducing refinancing risks.

Citigroup Global Markets Limited and Standard Bank of South Africa are acting as Dealer Managers, while Citibank N.A., London Branch, is serving as Tender Agent.

The 2028 notes are currently admitted to trading on the Main Market of the London Stock Exchange and on the Main Securities Market of Euronext Dublin.

The Accrued Interest Payment will be paid in addition to the Purchase Price. Copies of the Tender Offer Memorandum are available from the Tender Agent.

Capitalised terms used but not otherwise defined in this announcement shall have the meanings given to them in the Tender Offer Memorandum.

Deadlines set by any intermediary or clearing system may be earlier than the official expiration date.

Noteholders should contact the intermediary through which they hold their Notes as soon as possible to ensure proper and timely delivery of Tender Instructions.

New Financing Condition

Kenya is expected to announce on 2 October 2025 its intention to issue new U.S. dollar-denominated notes in one or more series (the “New Notes”).

Acceptance and settlement of any Notes validly tendered under the Offer are conditional, unless waived at Kenya’s sole discretion, on the successful completion of the issue of the New Notes or any other financing deemed acceptable by Kenya.

Even if this condition is met, Kenya is not obliged to purchase any tendered Notes.

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