Safaricom PLC has officially launched the first tranche of its ambitious Ksh. 40 billion Domestic Medium-Term Note Program (corporate bond). They have announced an inaugural offering of a Ksh. 15 billion Green Bond.
The launch marks Kenya’s largest green bond issuance to date, and uniquely, the first to allow mobile-based subscriptions. The offer runs from November 25th to December 5th and is designed to attract a wide range of investors:
| Feature | Details |
| Tranche Amount | Ksh. 15 Billion (with KSh5 Billion ‘Greenshoe’ option) |
| Interest Rate | 10.4% (Tax-Free) |
| Tax Status | Tax-Exempt under Kenyan law for interest earned, maximizing investor returns. |
| Minimum Investment | Ksh. 50,000, with top-ups in multiples of Ksh. 10,000. |
With interest rates on instruments like Treasury Bills experiencing volatility, the fixed, tax-free nature of the 10.4% return makes this bond a compelling opportunity for risk-averse investors.
The proceeds from the Green Bond will be channeled directly to finance and/or refinance a dedicated portfolio of eligible green projects.
Beyond the environmental impact, the funds serve a broader corporate purpose: to broaden Safaricom’s funding base, strengthen financial resilience, and fuel strategic investments aligned with its vision to become Africa’s leading purpose-led technology company by 2030. This includes long-term investments in:
- Connectivity: Expanding the 4G/5G network infrastructure.
- Fixed Broadband: Accelerating the delivery of fixed home and enterprise connections.
- Financial Services: Scaling FinTech solutions beyond M-PESA, including wealth, credit, and insurance.
Safaricom Group Chief Finance Officer, Dilip Pal, underscored the dual benefit of the issuance: “This transaction marks a major milestone in our strategic financing plans, enabling Safaricom to diversify funding sources and tap into the local debt capital market. 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.”
Peter Ndegwa, CEO of Safaricom, highlighted how the green bond model integrates financial strategy with social and environmental impact: “This Green Bond underscores our commitment to embedding sustainability at the heart of our business. By adopting innovative financing solutions, we create long-term value for our stakeholders while delivering positive environmental and social impact. This approach will continue to guide our growth, ensuring that every step forward is both purposeful and sustainable.”
The public can buy the Safaricom corporate bond through the following channels:
- USSD *483*810#
- Online at safaricombond.e-offer.app
- Licensed stockbrokers in Kenya
The green bond has been arranged by SBG Securities Limited, Stanbic Bank Kenya Limited, and Standard Chartered Bank Kenya Limited. These three, alongside Dyer and Blair Investment Bank, are also serving as the official placing agents.