Kenya is considering a $1.13 billion external bond sale as it addresses a budget deficit estimated at KSh1.146 trillion, equivalent to 5.5% of GDP. The planned financing comes as the government seeks to close a fiscal gap in the 2026/27 budget, with KSh116 billion expected from foreign lenders.

On June 15, the Central Bank of Kenya raised KSh8.45 billion in a tap sale of two long-term Treasury bonds. Separately, Kenya repaid the remaining $560 million of its 2014 Eurobond using part of a $1.2 billion World Bank loan.

The government is also moving to meet its revenue targets through tighter tax collection measures as it manages domestic and external financing needs.