Kenya says liability management pushed near-term default risk to US$1.5bn 2031 Eurobond

On 2 June 2026 Treasury CS John Mbadi told Parliament that Kenya’s liability-management operations have cleared immediate default risk by covering 2027, 2028 and 2032 maturities, leaving concentrated refinancing exposure in a US$1.5 billion 9.75% Eurobond maturing in 2031.

By reducing outstanding volumes in 2027, 2028 and 2032 via buybacks and refinancing, Kenya has shifted near-term rollover pressure onto a single longer-dated instrument. That concentrates refinancing risk around the 2031 bullet for sovereign Eurobond holders and could amplify long-end sovereign pricing sensitivity; corporate spreads may align if sovereign stress perceptions rise toward 2031.

Whether Treasury launches further liability management to address the 2031 bond or a formal plan to smooth its amortisation.