SAFARICOM LAUNCHES KSH15 BILLION GREEN BOND TO FUND SUSTAINABLE PROJECTS

Safaricom has launched KSh15 billion green bond, which represents the first segment of its larger KSh40 billion Domestic Medium-Term Note Programme. The offering includes a greenshoe option to raise an additional KSh5 billion in case of high investor demand.

Designated as a green bond, the capital raised will be exclusively allocated to financing or refinancing environmentally sustainable projects. A key feature for investors is that the interest earned is exempt from tax under Kenyan law, allowing them to retain the full value of their returns.

The initiative serves a dual purpose: it advances Safaricom’s environmental agenda while also diversifying its funding sources. This strengthens the company’s financial foundation as it pursues its strategic goal of becoming Africa’s premier purpose-led technology company by 2030.

CEO Peter Ndegwa stated that the bond reflects the company’s core principle of integrating sustainability into its business model. The bond offer, which carries a tax-free interest rate of 10.4%, is open for subscription from November 25th to December 5th. 

Retail investors can participate with a minimum of KSh50,000, with the option to top up in increments of KSh10,000. Applications are facilitated through mobile USSD (*483*810#), a dedicated online portal, or licensed stockbrokers.

According to Group CFO Dilip Pal, this issuance is Kenya’s largest green bond and the first to enable mobile-based subscriptions. The funds will support long-term investments in the company’s connectivity, broadband, and financial services divisions. The bond issuance is arranged by a consortium including SBG Securities Limited, Stanbic Bank Kenya Limited, and Standard Chartered Bank Kenya Limited.