Safaricom has opened the first KES 15 billion tranche of its KES 40 billion Domestic Medium-Term Note Programme. It has the option to raise an additional KES 5 billion if demand calls for it. The move positions the telco not just as a borrower. It is also a key player shaping Kenya’s debt market as it transitions toward green finance.
The offer, classified as a Green Bond, will fund and refinance projects that meet environmental criteria. These include network efficiency upgrades, renewable energy use, and other sustainability-linked investments. Investors will earn tax-free interest an important incentive in a tightening economy where yield and risk are under renewed scrutiny.
KES 40 B Green Bond Targets Sustainable Network Upgrades
Safaricom is using this bond to widen its funding base at a time when infrastructure needs are rising and traditional financing channels face pressure. The bond also gives the company room to strengthen its balance sheet as it pursues long-term ambitions to become a regional technology leader by 2030.
CEO Peter Ndegwa framed the issuance as part of Safaricom’s broader shift from a telecom operator to a purpose-led tech company. His emphasis on “innovative financing solutions” signals a corporate direction where sustainability and capital strategy are tightly linked.
The offer is open from 25th November to 5th December at a tax-free rate of 10.4%, accessible with a minimum investment of KES 50,000. Subscriptions can be made via mobile via USSD *483*810#, online platforms, or licensed brokers.
Group CFO Dilip Pal highlighted the transaction as a diversification strategy. His comments point to the company’s intention to reduce reliance on short-term borrowings. They are supporting future investment in connectivity, fibre rollout, and financial services.
SBG Securities, Stanbic Bank Kenya, and Standard Chartered Bank Kenya are the lead arrangers. They are joined by Dyer & Blair as placing agents. Their involvement underlines growing institutional confidence in green debt instruments locally.
