Ksh 194B New Eurobond, SACCOs Risk Losing Billions and Bamburi Cement Shareholders Warned

Hello and welcome to today’s edition of The Business Roundup, where we bring you the latest updates on Kenya’s dynamic business landscape. In this edition, we dive into the government’s successful securing of a multi-billion Eurobond and explore the key economic trends shaping the nation’s financial future.

Treasury Cabinet Secretary John Mbadi announced that Kenya has secured a new Ksh194 billion (US$1.5 billion) Eurobond with a 10-year maturity, aimed at refinancing its existing debt.

Mbadi stated that the proceeds from this bond will be used to refinance existing external debt, including a planned buyback of a US$900 million (Ksh116.3 billion) Eurobond set to mature in 2027.

The bond, which carries a 9.5 percent coupon rate, will be amortized in three equal installments in 2034, 2035, and 2036.

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Kenya raises Kh194bn in New Eurobond Sale

The issuance attracted significant interest from international investors, with the order book exceeding US$5 billion (Ksh646.2 billion).

“Proceeds from the 2036 Eurobond will be used to refinance existing external debt, including the planned buyback of Kenya’s US$900 million Eurobond maturing in 2027,” Treasury said in a statement.

“The final amount for the buyback will be determined based on demand in the ongoing Tender Offer. Results are expected on March 3, 2025.”

In 2024, Kenya issued a US$1.5 billion Eurobond due in 2031, which CS John Mbadi says “aligns with the government’s strategy to smoothen the maturity profile of Kenya’s external debt and proactively manage public debt liabilities.”

Kenya has reduced its chances of defaulting on the $2 billion debt, easing investors’ concerns about the settlement of the Eurobond, with some projecting a liquidity and debt crisis.

Tanzanian Tycoon Gives Bamburi Cement Shareholders an Ultimatum

Tanzanian cement company, Amsons Industries, on Friday, September 28, issued an ultimatum to non-assenting shareholders of Bamburi Cement as it pushes to acquire full ownership of the company.

Amsons stated that it intends to acquire 100% of Bamburi Cement Plc shares at Ksh 65 per share by purchasing the remaining 3.46% held by shareholders who opposed the takeover.

The company also noted that it has met the necessary conditions within the timeframe specified under Section 612(2) of the Companies Act CAP 486.

“The Offeror hereby gives notice that the Offeror now intends to exercise its right under Section 611 of the Companies Act CAP 486 to acquire shares held by you in the Company,” the statement read.

Amsons announced that shareholders now have six weeks from the date of the notice to indicate their preferred choice of consideration in writing.

At the same time, the company mentioned that shareholders wishing to oppose the acquisition must file a court application within six weeks.

SACCOs at Risk of Losing Billions After KUSCCO Heist

Several Savings and Credit Cooperative Organizations (SACCOs) under the Kenya Union of Savings & Credit Co-operatives (KUSCCO) are set to lose billions of shillings following illegal withdrawals at the union.

An internal audit conducted in November 2024 revealed that KUSCCO had lost at least Ksh 12.5 billion due to illegal withdrawals and widespread mismanagement. The scandal has led to multiple arrests and placed financial strain on member SACCOs.

According to recent financial results, Mhasibu SACCO risks losing over Ksh 480.6 million after KUSCCO failed to release a matured fixed deposit amounting to Ksh 480.6 million.

Other SACCOs at risk include Kimisitu SACCO, which will lose Ksh 353.95 million, and the Law Society of Kenya SACCO, which will lose at least Ksh 19 million despite efforts to terminate their investments with KUSCCO.

Additionally, KENPIPE SACCO reported Ksh 149.18 million in fixed deposits and Ksh 698,113 under KUSCCO’s Jungu Kuu savings.

On its part, Stima Deposit Taking Sacco has written off Ksh 108 million in deposits, while Balozi SACCO has written off Ksh 437.5 million. 

Other SACCOs like AMREF and Qona (formerly Safaricom SACCO) also reported substantial investments at KUSCCO. AMREF SACCO has Ksh 90 million, while Qona SACCO has Ksh 134.7 million.

Of this, Ksh 104 million is in interest-earning deposits and Ksh 30.7 million in shares.

ALSO BIG THIS WEEK

• President Donald Trump’s administration terminated thousands of foreign assistance grants awarded through the U.S. Agency for International Development (USAID) as part of a broader effort to reduce the size of the federal government.
• The prices of food items, including onions, mutton and beef, increased in February by 1.0, 0.2 and 0.2 percent, respectively (per Kilogram) compared to the prices in January as the inflation rate hit 3.5%.
• Bamburi Cement Board of Directors announced the suspension of trading of shares at the Nairobi Securities Exchange (NSE).
• The Hustler Fund is facing a major repayment crisis as 64% of the Fund’s total loan portfolio—equivalent to Ksh 8.74 billion — remains unpaid for over a year, according to the Auditor General.
• Kenya’s 11 banks listed in the Nairobi Securities Exchange (NSE) have outperformed their unlisted counterparts over the past two decades, benefiting from improved access to capital, enhanced corporate governance, and greater investor confidence. 
• The High Court of Kenya ordered seven banks, including Kenya Commercial Bank (KCB), National bank, Equity Bank and Co-operative Bank, to pay over Ksh1.1 billion to a contractor owed by Moi University.

Currency Trends

The Kenya Shilling remained stable against major international and regional currencies during the week ending February 27. It exchanged at Ksh 129.31 per US dollar on February 27, compared to Ksh 129.45 per US dollar on February 20.

Tenders

The Ministry for Agriculture and Livestock Development invited bids from interested and eligible firms for the leasing of Nzoia Sugar and Chemelil Sugar companies.

Coast Water Works Development Agency invited sealed tenders for the construction of Water Supply to The Creek Village Affordable Housing Units in Kisauni Constituency, Mombasa County.

Kenya Power has invited tenders from interested bidders for the provision of four tenders, including the procurement of tools and test equipment for transformers. 

The Ministry of Foreign Affairs advertised tenders for provision of cleaning, garbage collection and sanitary services at Upper Hill 316 Chambers and provision of outside catering services.

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