The East African Breweries Ltd (EABL) has announced plans to pay back its KES11 billion debt early, with the firm saying that investors who held the notes as of 14th October 2025, will receive their payment.

The brewer plans to pay the principal as well as any accrued interest on 29th October 2025, and thereafter have the notes delisted from trading at the Nairobi Securities Exchange (NSE).

"Following the early redemption, the Notes will be delisted from the Fixed Income Securities Market Segment of the NSE and will mark the conclusion of the MTN programme," an update to the market signed by company secretary Angela Pearl Namwakira states in part.

According to EABL's Chief Financial Officer Risper Ohaga, the early redemption plan is part of a broad strategy by the regional brewer to ease financing costs for its operations while improve liquidity.

The KES11 billion bond was issued in October 2021 with a fixed interest rate of 12.25 percent and listed on the Nairobi bourse.

EABL’s total debt stock decreased by 15.96 percent to KES34.8 billion in the trading period ending June 2024, from KES41.4 billion the previous year, as the company moved to reduce its debt load amid high-interest rates and inflation pressures. 

The company’s repayment decision, reported by Business Daily, reflects its efforts to manage capital efficiently, strengthen liquidity, and improve financial flexibility in a challenging economic environment.

EABL issued the KES11 billion bond in 2021 during the COVID-19 economic fallout seeking fresh capital to pay off existing loans and get funds to refinance its short-term borrowings. 

During this period, the company was grappling with Covid-19-induced supply chain woes, and dip in consumption all of which triggered liquidity challenges.

Just before issuing the KES11 billion bond, EABL which operates in Kenya, Uganda and Tanzania settled a KES6 billion bond in early 2021.

In September last year, student accommodation focused developer, Acorn Holdings, successfully executed early redemption of its KES5.7 billion note.

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