Kenya announces capped US$500m Eurobond buyback for 2028 and 2032 lines

On 24 May 2026 Kenya’s Treasury announced a capped US$500 million tender offer to repurchase portions of the outstanding 7.250% February 2028 and 8.000% May 2032 Eurobonds, part of a liability-management exercise following a February 2026 dual-tranche issuance.

A capped buyback that retires high-coupon lines reduces medium-term rollover risk and should compress spreads on repurchased issues. However, executing dollar buybacks increases near-term FX demand for the Treasury and can pressure reserves and the shilling unless external financing or reserve drawdowns fund the purchases. Secondary-market tightening will be concentrated on the specific repurchased lines rather than across all Kenyan curves.

Treasury to publish full tender terms, timetable and settlement date for the capped US$500m offer.