Government Defends Debt Strategy as It Steps Up Drought Relief and Security Operations

Kenya has raised 2.25 billion US dollars through a dual tranche Eurobond, the largest transaction in over a decade.
Speaking during a press briefing in Nairobi, Government Spokesperson Isaac Mwaura said the recent Eurobond issuance was part of a broader plan to stabilize public finances while maintaining investor confidence.
“The bond attracted strong interest from international investors, a signal that confidence in the country’s economic reforms is holding,” he said.
He noted that the funds will be used to refinance existing debt, especially obligations falling due in 2028 and 2032, easing pressure on near term repayments.
“This is not new borrowing for consumption. It is a deliberate move to manage our debt profile and create breathing room as we grow the economy,” Mwaura added.
The spokesperson linked the positive reception to recent improvements in Kenya’s credit outlook and stronger foreign exchange reserves.
On the drought affecting large parts of the country, Mwaura said more than three million Kenyans remain in need of assistance following the failure of the short rains late last year.
“Since September, the government has spent over six billion shillings on food aid, livestock support and other emergency measures across 23 counties. Through the Hunger Safety Net Programme, over 130,000 vulnerable households have received direct cash support. Counties in the north including Mandera, Turkana, Wajir and Marsabit remain the hardest hit” Mwaura underscored.
At the same time, the government is looking to the recent rains in parts of the country as a chance to rebuild. Farmers are receiving certified seeds and subsidized fertilizer, while efforts to rehabilitate boreholes and expand irrigation are ongoing.
Mwaura said irrigation remains central to long term food security, with plans to expand acreage under irrigation significantly by the end of the decade, including through large scale projects such as Galana Kulalu.
On security, the government confirmed that agencies had disrupted a planned terror attack in Nairobi during the Ramadan period. The operation, led by specialized police units and intelligence officers, led to arrests and the recovery of weapons and explosives.
Mwaura said the operation reflects improved coordination among security agencies and urged the public to remain vigilant.
“Our security teams are working around the clock. Public cooperation remains critical in keeping the country safe,” he affirmed.
The briefing also highlighted progress in the fight against drug trafficking. Authorities have seized narcotics valued at more than 8 billion shillings in recent months, targeting both local and international networks.
The government has increased the number of specialized anti narcotics officers and introduced new forensic tools to strengthen investigations. It has also moved to shut down illegal online drug distribution channels and unlicensed pharmaceutical outlets.
Mwaura added that treatment for substance use disorders is now being integrated into public health financing, with rehabilitation centres planned across all counties.
Youth programmes also featured prominently in the update. The government is investing in sports infrastructure, including football academies and new stadiums, to support talent development and offer alternatives to crime and drug use.
He pointed to recent support for young athletes, including financial backing for emerging talents, as part of efforts to grow the sports sector.
On regional trade, Kenya is set to host the East African Business and Investment Summit in Nairobi, bringing together policymakers and investors to deepen economic ties. The meeting is expected to focus on expanding trade under continental frameworks and strengthening partnerships within the region.
Mwaura said Kenya’s foreign policy is increasingly centred on economic diplomacy, aimed at opening markets and attracting investment.
He also pointed to signs of recovery in the broader economy. Lending to businesses and households has picked up, supported by lower interest rates, while private sector activity has returned to growth.
The government has also released billions of shillings in pending payments to suppliers and contractors, a move expected to inject liquidity into the economy.
Sectors such as manufacturing, real estate and trade are beginning to show improvement, while exports are being redirected to new markets in Europe and Central Asia.
Mwaura maintained that while challenges remain, the combined measures on debt management, food security, security operations and economic reform are beginning to stabilize the country.
“We are focused on practical steps that protect livelihoods, support growth and keep the country secure,” he concluded.