Based on a new debt framework approved by the Capital Markets Authority [CMA]. Safaricom has launched a major financing initiative with the goal of raising up to KES 40 billion through a domestic medium-term note [MTN] program.
On 25th November, 2025, the company launched the first tranche a KES 15 billion “Green Bond” with a “green-shoe” option to add another KES 5 billion if investor demand is high.
Safaricom’s entry into the bond market reflects its strategic shift from short-term borrowings and foreign-currency debt to long-term, shilling-denominated financing. Analysts note that this move converts costly short-term obligations into stable long-term debt, strengthening the company’s financial structure and improving predictability.
Safaricom has structured the bond as a “green” instrument, directing all proceeds exclusively to “eligible green projects” under its Sustainable Finance Framework. These projects include improving infrastructure, expanding connectivity, boosting energy efficiency, and powering network sites with renewable energy.
Milestone in Strategic Financing Plans
“This transaction marks a major milestone in our strategic financing plans. It enables Safaricom to diversify funding sources and tap into the local debt capital market.” Said Dilip Pal, Group Chief Finance Officer.
“As Kenya’s largest green bond issuance and the first to allow mobile-based subscriptions. It reinforces our commitment to innovation, accessibility, and sustainable growth. The new bond creates a flexible funding framework to support long-term investments in connectivity, fixed broadband, and financial services,” added Dilip.
The bond has a fixed annual interest rate of 10.40% and, crucially, interest earned is tax-exempt under Kenyan law. It allows investors to fully benefit from returns. The issuance is intended to be accessible via mobile [USSD], online portals, or licensed stockbrokers, with a minimum subscription fee of KES 50,000 and additional investments in multiples of KES 10,000. This is a significant step toward democratizing corporate debt investment for retail shareholders.
Why this Bond Matters
For Safaricom, the bond provides long-term capital that will support network expansion [including 4G/5G], broadband deployment, green energy investments, and infrastructure upgrades without over-relying on expensive short-term or foreign-currency debt. Additionally, the structure provides flexibility through potential future MTN program tranches.
The issuance, which is reportedly the biggest green corporate bond in Kenya to date. It could revitalize the country’s debt market by providing other businesses with a prominent benchmark. It might contribute to the expansion of investor participation beyond conventional government securities. This deepens of the domestic debt capital market.
As noted by its leadership and confirmed in the bond documents. The initiative is not just about raising funds it is a deliberate integration of sustainability, financial pragmatism, and inclusive investment.
