Kenya Plans $815M Eurobond and $500M Samurai Bond in Next Fiscal Year

Kenya intends to tap international capital markets in the upcoming fiscal year, according to a Finance Ministry document released on Friday. The government plans to issue a Eurobond worth $815 million during the second quarter of the 2026/27 fiscal year, which runs from July to June. In the third quarter, it aims to raise an additional $500 million through Samurai bonds, which are yen-denominated instruments sold in Japan.

The borrowing plan is part of a broader effort to manage the country's heavy debt load and create fiscal space for development projects and infrastructure investment. Kenya has been actively seeking new financing sources as it faces significant repayment obligations.

The document also confirms that the government will proceed with a $1 billion debt-for-food security swap with the U.S. International Development Finance Corporation (DFC). This arrangement, first announced in December, is designed to redirect debt payments toward food security initiatives.

These moves reflect Kenya's ongoing strategy to diversify its funding base while addressing immediate financial pressures.