CS Mbadi Explains Why Government Is Turning to Eurobond, Says It’s About Managing Debt, Not Adding More

Treasury Cabinet Secretary John Mbadi has defended the government’s plan to issue a new Eurobond, saying it is a strategic move to manage Kenya’s debt load rather than an attempt to accumulate new borrowing.

In an interview with Citizen TV on Saturday night, Mbadi said the decision was aimed at shielding the economy from pressure caused by maturing loans that are all falling due within a short period. 

He described the Eurobond as a refinancing tool meant to spread out repayments and prevent a possible cash crunch.

“We have several commercial debts maturing around the same time. The new Eurobond will help us smooth the repayment curve and deal with the $900 million bond maturing in 2027, which would otherwise strain our economy,” Mbadi said.

The Treasury boss dismissed claims that the move amounts to reckless borrowing, insisting it is part of a deliberate debt management strategy. 

“We’re not adding more debt to the economy. What we are doing is restructuring existing loans to make repayment timelines manageable,” he explained.

His comments come at a time when Kenya’s public debt has surpassed KSh 11 trillion, sparking debate over the sustainability of the country’s borrowing policy.

Mbadi emphasized that the Treasury is pursuing a balanced approach that combines debt restructuring with efforts to raise more domestic revenue and reduce dependence on expensive foreign loans.

“Our focus is on stability, investor confidence, and sustained growth. The Eurobond is simply a way to manage our obligations responsibly and avoid shocks that could disrupt the economy," he said.