Kenya has paid off the remaining $556.97 million (Sh71.5 billion) of its $2 billion (Sh257 billion) Eurobond ahead of the June 24, 2024, due date. According to the National Treasury’s Public Debt Management Office, this final payment was made on Friday, June 21, three days before maturity.
This repayment has boosted Kenya’s National Reserves, pushing them above the statutory four-month import cover requirement for the first time in five months.
The Central Bank of Kenya (CBK) reported in its weekly brief that as of June 20, the usable foreign exchange reserves stood at $8.32 billion, equivalent to 4.3 months of import cover. This marks an increase of $1.31 billion (Sh168 billion), bringing the reserves to $8.32 billion (Sh1.07 trillion).
In February, Kenya had partially retired this note and issued a new Eurobond. The government received tenders worth $1.48 billion and accepted $1.44 billion in valid tenders. The National Treasury had indicated that the outstanding amount would be settled through a combination of syndicated, multilateral, and domestic financing. The new Eurobond, intended to retire the maturing one, was divided into three installments with an average life of six years and is set to mature in 2031.
In December, Kenya paid $68.7 million (Sh8.8 billion) in interest for the $2 billion (Sh313 billion) Eurobond. The Parliamentary Budget Office (PBO) had previously stated that to fully repay the Eurobond, the government would need to secure new funding from external markets, whether through a buyback or using foreign exchange reserves. Possible funding sources included the IMF, World Bank, and syndicated loans via multilateral agencies.