The International Monetary Fund (IMF) has urged Kenya to strengthen public finance management and ensure debt sustainability following a two-week mission to Nairobi. The discussions aimed to assess Kenya's economic outlook and explore policies for a new IMF program.

• Previous $3.6 billion Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programs, valued at about $800 million, stalled earlier this year.
• The IMF team was led by Mission Chief Haimanot Teferra.
• The visit emphasized credible fiscal policies, improved governance, and minimizing risks, coming months after the government withdrew tax hikes in the 2024 Finance Bill due to protests.

Kenya has returned to international markets, successfully raising US$1.5 billion through a dual-tranche Eurobond issuance to proactively manage its debt and refinance near-term obligations. This marks the country's second major liability management operation in under two years.

• The issuance consists of two equal tranches: US$750 million of 7.875% Amortising Notes due 2033 and US$750 million of 8.80% Amortising Notes due 2038.
• The bonds are admitted to the official list of the UK Financial Conduct Authority and trading on the London Stock Exchange.
• The net proceeds are primarily intended to finance the repurchase of Kenya’s US$1 billion 7.250% Notes due 2028.
• Citigroup Global Markets Limited and The Standard Bank of South Africa Limited acted as joint bookrunners.

Kenya has successfully bought back US$628.44 million (KSh 81.2 billion) of its 2028 Eurobond, following a new US$1.5 billion dual Eurobond issuance. This move aims to smooth debt maturities and reduce refinancing risk.

• Kenya accepted tenders worth US$628.44 million (KSh 81.2 billion) for repurchase at US$1,037.50 per US$1,000.
• The buyback was financed by proceeds from a new US$1.5 billion (KSh 193.9 billion) Eurobond sale.
• Citigroup Global Markets Limited and The Standard Bank of South Africa Limited acted as dealer managers for the transaction.