On November 26, 2025, Safaricom sat down with members of the Fourth Estate to unpack its Domestic Medium-Term Note Programme. Throughout the session, executives emphasised transparency, disciplined debt management, and the central role of ESG commitments in shaping the company’s financing strategy.

Safaricom had launched its note the previous day, on November 25, 2025, upon approval by the Capital Markets Authority (CMA) on November 7. This is a KSh 40 billion debt issuance initiative. The Programme is designed to diversify the company’s funding sources, enhance financial flexibility, and support long-term investments as Safaricom advances its ambition to become Africa’s purpose-led technology company by 2030. Under this Programme, Safaricom may issue a range of notes, including green, social, and sustainability notes. The interest earned on these green bonds is tax-exempt, allowing investors to enjoy the full benefit of their returns and maximising value. 

SBG Securities Limited, Stanbic Bank Kenya Limited, and Standard Chartered Bank Kenya Limited jointly arranged the transaction. These three institutions also serve as Placing Agents, alongside Dyer & Blair Investment Bank, which joins them solely in the placement and distribution role. Bowmans Africa provides legal advisory, while the Capital Markets Authority regulates the notes, which will be listed on the Nairobi Securities Exchange.

The First Tranche amounts to KSh 15 billion, with a green shoe option of up to KSh 5 billion should demand exceed the initial target. This is in five-year green notes priced at a fixed rate of 10.40%. Investors can participate with a minimum of KSh 50,000 and multiples of KSh 10,000 thereafter.

On the composition of the financing package and the portion that may go toward debt, Safaricom noted that the exact amount is still under internal review. While the programme offers flexibility, full details will be communicated once all elements are finalised.

The company confirmed that all preliminary work for project allocation has already been undertaken, with a transparent and internationally compliant process guiding the use of proceeds. Allocation of the full KSh 15 billion will be approved by independent third-party verifiers, with Sustainalytics serving as Safaricom’s partner. The green financing framework, which is publicly available on the Safaricom website, outlines a comprehensive list of eligible projects, including solarisation of network sites, digital inclusion, fibre rollout, financial inclusion initiatives through M-Pesa, and sustainable procurement. Refinancing of qualifying projects is allowed for up to 36 months before issuance.

Safaricom explained that the decision to issue a green bond is strategic rather than comparative. While recent corporate issuances in the market demonstrate strong investor appetite, Safaricom’s focus is on a tech-centred, ESG-led instrument that offers the most effective cost of borrowing. The bond’s tax-exempt status and private-issue structure further strengthen its appeal. The company reiterated that its main priority is aligning financing with long-term sustainability goals and operational efficiency.

Safaricom outlined three key dynamics currently shaping its debt book. First, it is transitioning to fixed-rate instruments to enhance certainty, locking in rates for five years. Second, it is benchmarking its position against internal metrics and previous sustainability-linked facilities. Third, existing obligations will amortise over a five-year horizon, supported by a bullet repayment feature. After this process is complete, the company will reassess whether another tranche is necessary based on market conditions and strategic need. They also noted that, given the level of research and structuring undertaken, the company is well-positioned to manage and comfortably clear its current debt profile.

Safaricom reiterated that energy costs form nearly half of total network operating expenditure, making energy efficiency a critical business priority. The company currently serves approximately 7,000 base stations and is modernising them through solarisation, digitisation, and the installation of advanced lithium battery systems. Around 1,500 sites have already been solarised. The transition strategy prioritises solar as the first option, grid power second, and diesel generators only as a last resort.

Network resilience is a major focus, with upgrades designed to prevent power outages from resulting in service interruptions. Safaricom is also building the capability to remotely power down underutilised cells, for example, during low-traffic night periods, to reduce energy costs further. Annual, third-party-verified reports will be issued until the full proceeds of the bond are deployed. They noted that modernisation and development of the data centre come with significant energy costs, but the investments are justified by the long-term efficiencies they unlock. They confirmed that its dividend policy will remain unchanged.  

The bond is open to any investor with a Central Depository & Settlement Corporation (CDSC) account. Safaricom avoided direct comparisons with government securities but highlighted that corporate issuance reflects confidence in the economy rather than a withdrawal from the Treasury bonds.  If the offer is oversubscribed, the allotment policy will guide the next steps. Any necessary scale-backs will be applied proportionately, with refunds issued after final allocations. Safaricom noted that one of the challenges in the corporate bond market has historically been low liquidity due to buy-and-hold behaviour among investors, and the company seeks to diversify its noteholder base to address this.

The bond closes on 9th December, and is set to be listed on the NSE on 16th December 2025. This is a domestic bond and will exclusively fund eligible green projects within Kenya. Dilip Pal, Safaricom’s Group Chief Finance Officer, stressed that proceeds from the fund will not be channelled to Ethiopia, as it has its own independent funding framework.

Success over the five years will be measured primarily through tangible expansion of renewable energy use, reductions in reliance on diesel, improvements in network resilience, and the overall environmental impact of the funded projects. Ultimately, the green bond is expected to enhance operational efficiency, strengthen sustainability credentials, and support Safaricom’s evolution into a fully digital, energy-efficient technology company.