East African Breweries PLC (EABL) has announced the launch of a KES 20 billion Domestic Medium-Term Note Programme, marking one of the largest corporate bond issuances in Kenya’s recent history.
The notes will rank pari passu with EABL’s existing unsecured obligations. Investors can expect market-aligned returns through a regulated investment vehicle.
Proceeds will support general corporate purposes, reinforcing EABL’s operations and growth ambitions, while presenting an attractive fixed-income opportunity for both retail and institutional investors
The Nairobi-based brewer, part of the global beverage conglomerate Diageo, said the Capital Markets Authority (CMA) had approved the programme. The move underscores growing confidence in the country’s capital markets and reflects the brewer’s strategic focus on strengthening its balance sheet and supporting long-term business expansion.
The first tranche of the programme will raise up to KES 11 billion, with a tenor of five years and an interest rate of 11.80% per annum, a strong incentive for both institutional and retail investors amid tightening liquidity and rising interest rates across East Africa.
“East African Breweries PLC (“EABL”) hereby announces that the Capital Markets Authority in exercise of its powers under Section 30A of the Capital Markets Act (Chapter 485A of the Laws of Kenya), on 2 October 2025, granted approval to EABL to offer medium term notes in the aggregate principal amount of up to KES 20,000,000,000 (“Notes”) under its Domestic Medium Term Note Programme,” EABL said in a statement accompanying the announcement.
According to the issuance document, the notes will be denominated in Kenya Shillings, with a minimum subscription of KES 10,000 and incremental multiples of KES 10,000.
Investors will receive their interest and principal payments through Image Registrars Limited, the appointed paying agent. The payments will be disbursed using convenient and secure channels, including RTGS or EFT transfers, Mobile Money, PesaLink, or internal bank transfers.
Interest on the notes will be paid semi-annually, or as otherwise specified in the Pricing Supplement, ensuring regular and transparent returns for investors throughout the bond’s tenure.
EABL has appointed Absa Bank Kenya PLC as the arranger and placing agent, Bowmans as legal counsel, and PwC as the reporting accountants. Investors can participate through the Web Application portal (https:// eablmtn.e-offer.app), or Physical forms sent to a Placing Agents (Absa Securities / Absa Bank Kenya).
Key dates for the offer include:
Opening Date: 27 October 2025
Closing Date: 10 November 2025
Allotment Date: 12 November 2025
Notification Date: 13 November 2025
Payment Date: 18 November 2025
Issue Date: 18 November 2025
EABL, which produces popular brands such as Tusker, Guinness, and Johnnie Walker, has consistently maintained a strong market position in East Africa despite facing higher input costs and fluctuating currency exchange rates. By tapping into the domestic debt market, the company aims to reduce reliance on bank borrowing and enhance financial flexibility.
The notes will be listed on the Fixed Income Securities Market Segment (FISMS) of the Nairobi Securities Exchange (NSE). Once listed, the Notes can be traded through the CDSC like other securities.
The timing of the issuance is also seen as strategic, coming when the CMA and NSE have been working to restore investor confidence after several years of subdued activity. EABL’s strong brand reputation and transparent governance are expected to enhance market credibility and encourage greater participation from both local and foreign investors.
With Kenya’s economy projected to grow by about 5% in 2025, rising consumer demand and stable macroeconomic indicators could support the company’s performance and ensure robust returns for bondholders.
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