Kenya has secured a new $1.5 billion (Sh193.8 billion) loan from international investors in a move the reduce borrowing costs and strengthen the country’s financial stability.
In a statement released by the National Treasury Principal Secretary, Chris Kiptoo on October 3, 2025, the funds were raised through two facilities, a seven-year loan at 7.875 percent interest and a twelve-year loan at 8.8 percent, giving the government a blended rate of 8.7 percent.
This is about 1% lower than what the country would have paid at the start of 2025.
The government has used part of the proceeds to pay off $1 billion of the 2028 Eurobond ahead of schedule, a step officials say will shield Kenyans from future repayment shocks.
“This is the third such transaction since 2024, and it shows the Government’s firm commitment to managing debt more wisely, paying off loans on time, and protecting Kenyans from sudden repayment shocks,” the statement read in part.
Investors' response to the facility was strong, with offers exceeding $7.5 billion (Sh990 billion), five times the amount sought.
According to the Treasury, most of the bids came from leading international fund managers based in the United States and the United Kingdom.
“This overwhelming response reflects renewed global confidence in Kenya’s economy,” the Treasury noted.
The Treasury says the deal will not only lower interest costs but also “smoothen and lengthen” Kenya’s debt repayment profile, giving the economy more breathing space.
“This success means Kenya will spend less on interest, ease pressure on taxpayers, and keep the economy stable while creating room to fund development priorities such as roads, health, and education,” the statement read
This is the third such transaction Kenya has undertaken since 2024, and it shows the Government's firm commitment to managing debt more wisely, paying off loans on time, and protecting Kenyans from sudden repayment shocks.
The government now hopes the move will reassure both domestic and international stakeholders of its resolve to maintain fiscal discipline while safeguarding growth.