Kenya Leads Sub-Saharan Africa's Sovereign Bond Issuance with $3.5 Billion

Kenya was the largest issuer of sovereign bonds in sub-Saharan Africa in 2025, raising $3.5 billion. This makes Kenya a leader in the region's bond issuance, according to the World Bank's International Debt Report. The report also shows that Côte d'Ivoire and Nigeria raised $2.5 billion and $2.3 billion, respectively. These figures demonstrate the significant borrowing activity in the region.

The total amount of sovereign bonds issued by sub-Saharan African countries increased by 36.2% in 2025 compared to 2024. Eight countries in the region raised a combined $11.8 billion through bond issuances by the end of 2025. However, market access remained costly, with IDA-eligible countries paying an average interest rate of 9.4% on new bonds in 2025. This rate is still steep for governments managing wide fiscal gaps.

Kenya's bond issuance in 2025 was partly driven by refinancing needs. In March 2025, Kenya issued a $1.5 billion Eurobond with a 9.5% coupon and a maturity date of 2036. This transaction helped extend the runway on debt falling due in 2027 and 2028. The Eurobond issuance demonstrates Kenya's efforts to manage its debt profile and take advantage of market conditions.

The terms of the bond market are tightening, with the weighted average coupon on public and publicly guaranteed bonds rising from 8% in 2025 to 8.8% through mid-August 2026. At the same time, the average maturity of bonds shortened from 10.4 years to 8.9 years over the same period. This combination of higher interest rates and shorter maturities raises rollover exposure for borrowers.

Investors receive higher income from these bond issuances but also carry greater fiscal and refinancing risk. Kenya's planned funding mix for the 2026-27 financial year will be closely watched by investors and market analysts. The government is targeting $2.2 billion in external commercial borrowing and plans to issue a $815 million Eurobond before the end of 2026.

In addition to the Eurobond, Kenya is considering other instruments, such as a $500 million Samurai bond, a $500 million Sukuk, and a $300 million Panda bond. These issuances will test investor appetite beyond the conventional Eurobond market. Other countries in the region, such as the Democratic Republic of Congo and Angola, have also increased their bond issuances in 2026.

The Democratic Republic of Congo issued $1.25 billion through two bonds in 2026, with coupons of 8.75% and 9.5%. Angola raised $4.75 billion by mid-August 2026, more than twice its 2025 total. The next signal for investors will be Kenya's approval timetable, pricing, and maturity choices for its planned 2026 borrowing programme.

Key points

• Kenya raised $3.5 billion in sovereign bonds in 2025, the largest amount in sub-Saharan Africa.
• IDA-eligible countries paid an average interest rate of 9.4% on new bonds in 2025.
• Kenya plans to issue a $815 million Eurobond before the end of 2026, subject to parliamentary approval.