East African Breweries PLC (EABL), one of Kenya’s largest listed companies and a leading regional brewer, has announced plans to redeem its KSh11 billion Medium Term Note (MTN) ahead of schedule, a move that analysts say reflects the company’s strong financial standing and prudent debt management strategy.
In a notice, EABL said it would carry out the early redemption of the KSh11 billion notes on 29 October 2025, effectively bringing to a close the five-year bond programme launched in 2021. The bond was part of EABL’s Medium Term Note Programme, which aimed to raise long-term funding from investors for expansion and operational needs.
The brewer stated that the redemption will cover the principal amount of KSh11 billion, along with accrued but unpaid interest up to the last interest payment date. The total sum to be paid to investors, referred to as the Early Redemption Amount, will be distributed to bondholders registered with the Central Depository and Settlement Corporation (CDSC) as of 14 October 2025, the official record date.
EABL’s Company Secretary, Angela Pearl Namwakira, who signed the notice, confirmed that the notes will be delisted from the Nairobi Securities Exchange (NSE) following the early redemption. “The redemption will mark the conclusion of the Medium Term Note Programme,” the statement read.
The decision to redeem the bond ahead of maturity is being viewed as a strong indicator of EABL’s financial health. In Kenya’s capital markets, early bond redemption typically reflects a company’s capacity to settle debt obligations ahead of time — often due to improved cash flows or refinancing through cheaper capital sources.
Financial analysts say this move underscores EABL’s steady recovery from recent economic challenges, including currency volatility and increased excise taxes that have affected the alcohol industry. Over the past two years, the brewer has implemented cost-cutting measures and diversified its product portfolio, strengthening its balance sheet.
EABL launched the KSh11 billion Medium Term Note Programme in October 2021 as part of a broader financing plan to support business growth across East Africa. The funds were raised in tranches through the Fixed Income Securities Market Segment of the NSE, attracting both institutional and retail investors.
The issuance was well-received at the time, reflecting investor confidence in EABL’s creditworthiness and leadership position within the region’s beverage sector. The proceeds were used to strengthen operations, expand distribution channels, and invest in production efficiency.
The Capital Markets Authority (CMA) approved the note programme under Kenya’s Public Offers, Listings and Disclosures Regulations, 2023. The regulator also approved the latest announcement of early redemption, which the company said had been issued in compliance with all relevant disclosure standards.
EABL’s move comes at a time when several Kenyan firms are reassessing their financing structures amid tighter global credit conditions and rising interest rates. While some companies are struggling with high debt servicing costs, others like EABL are opting for early redemptions or debt restructuring to safeguard profitability.
Kenya’s corporate bond market has been relatively subdued in recent years, but successful redemptions such as EABL’s could encourage renewed investor interest. The brewer’s action may also serve as a benchmark for other blue-chip firms seeking to demonstrate credit discipline and resilience.
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