East African Breweries Limited (EABL) has launched a KES 20 billion Domestic Medium-Term Note (MTN) Program following approval from the Capital Markets Authority (CMA) on October 2, 2025.
Under the program, EABL has issued the first tranche offering KES 11 billion, with a tenor of five years and an interest rate of 11.80% per annum. According to EABL, the offer opens on October 27, 2025, and closes on November 10, 2025, with a minimum subscription of KES 10,000 and integral multiples thereof.
Read: EABL’s Strategic KES 11B Bond Redemption Underscores Strong Liquidity
The notes under the firm’s program lack security, and investors in the bond will be treated equally with investors in other unsecured bonds issued by EABL in the event of default or liquidation of assets. The corporate bond will be listed on the Nairobi Securities Exchange (NSE) on the Fixed Income Securities Market Segment (FIMS) after subscription and allotment. The regional brewer seeks to direct the proceeds of the issue of the notes to general corporate purposes or as otherwise specifically set out in the applicable pricing supplement.
The move by the NSE-listed company reflects management’s strategy to take advantage of lower interest rates. Currently, the Central Bank Rate (CBR) stands at 9.25% following the eighth consecutive cut by the Monetary Policy Committee (MPC) of the Central Bank of Kenya from 13.00% in August 2024.
EABL’s MTN Redemption
The launch of the new medium-term note comes shortly after the brewer announced the early redemption of its KES 11 billion medium-term note issued in October 2021 under its KES 45 billion Domestic Medium-Term Note Program, internally dubbed “Project Kifaru”. EABL is set to effect the buyback on October 29, 2025, settling the bond one year before its maturity.
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