Kenya is considering issuing more Eurobonds to pay off maturing debt and smooth its ‌repayment schedule, the East African country's finance minister said on Wednesday.

The government issued two Eurobonds in February and October last year to buy back bonds ​that were coming due, after concerns about Kenya's ability to pay off a June 2024 bond sent yields sharply higher and hit the ​shilling currency.

"Whereas ​the redemption profile currently looks smooth, there is still room for additional liability management operations," finance minister John Mbadi told a news briefing.

Kenyan media outlets have reported in recent weeks that the government is considering issuing another ⁠Eurobond during this financial year, which runs to the end of June.

"It might be an ideal time to go to the market," Mbadi said, but added that a decision had not been made. Sales of emerging market debt hit record highs in January amid intense demand.

Kenya's government is also pressing ahead with a $1 billion debt-for-food swap, backed by the U.S. International ​Development Finance Corporation, which ‌will allow it ⁠to replace expensive commercial debt ⁠with credit on concessional terms.

Mbadi said the ministry would release details in the coming months, but the debts to be retired could ​include expensive syndicated loans.

NEW IMF PROGRAMME?

President William Ruto, who faces re-election next year, has faced difficult ‌choices after inheriting a heavily-indebted economy, despite 4.9% GDP growth in the ⁠third quarter of 2025.

A series of taxes sparked deadly, youth-led protests in 2024, forcing Ruto to try to chart a path without the International Monetary Fund, which was partly blamed for the pressure to increase revenue through taxes.

But talks for a new programme began in September after the April expiry of the previous one for $3.6 billion. Talks are set to continue in Nairobi before the end of this month, Mbadi said.

"We are making progress with the new IMF programme," he said, adding the government had formally requested a deal.

Nairobi was open to a programme that includes lending or one without a financial component, he said, adding the government had not factored IMF funding into this fiscal year or ‌the next.

PRESSURE ON PUBLIC FINANCES

Ruto's government is also selling stakes in profitable ⁠state firms to bankroll infrastructure construction.

It also converted three loans from China for railway construction ​into the Chinese yuan currency from dollars, to save $215 million annually due to lower interest rates and maturity extensions.

Kenya's central bank had assured the government that enough Chinese currency would be available to pay off the railway loans from China, Mbadi said.

The government plans ​to invite bids ‌for a strategic investor into Kenya Airways, Mbadi said, to inject $1.2-$2 billion into the national airline, ⁠which has been plagued by high debts and other ​challenges in recent years.

(Reporting by Duncan Miriri; Additional reporting by Elias Biryabarema; Editing by Alexander Smith)