Kenya will in December settle the first $300 million instalment of the $2 billion Eurobond debt that is due in June next year, President William Ruto said.
Due to its mounting debt repayments, depreciating currency and slow recovery after the Covid-19 pandemic, the country is being widely monitored by investors to see if it is at risk of a default.
Ruto said that various efforts undertaken by his government to stabilise the debt situation have yielded much progress.
"In December, we will be able to settle the first $300 million instalment of the $2 billion Eurobond debt that falls due next year," Ruto said in a speech in parliament.
"I can now confirm with confidence that we will and we shall pay the debt that has become a source of much concern to citizens, markets and our partners."
Government officials have said that the International Monetary Fund and the World Bank was assisting in reducing liquidity issues to help the East African country repay its debts.
As of June, the government was saddled with nearly $70 billion in public debt, or roughly 67% of its GDP.
The repayment costs have risen as the currency trades at record lows of around 150 shillings per dollar.
(Editing by Bindu Rai)