Safaricom Launches KSh 15 Billion Green Bond, Offering 10.4% Returns in Kenya’s Largest Sustainable Investment

Safaricom has opened subscriptions for its KSh 15 billion green notes. This is the first tranche of a KSh 40 billion Medium-Term Note Programme. Both retail and institutional investors can participate. The minimum investment is KSh 50,000. Investors can apply via USSD, an online portal, or licensed stockbrokers.

The company will use the funds to finance green projects. It also aims to diversify funding sources and strengthen its long-term financial position. The notes offer a fixed interest rate of 10.4 percent per year. Safaricom said interest income will be tax-exempt, subject to law. The offer runs from November 25 to December 5. Allotment results will be announced on December 9. The bonds will list on the Nairobi Securities Exchange on December 16. A greenshoe option of up to KSh 5 billion is available if demand exceeds the initial target.

Proceeds will fund energy efficiency projects, climate-aligned infrastructure, and long-term investments in connectivity, broadband, and financial services. CEO Peter Ndegwa said the bond shows Safaricom’s commitment to sustainability. It also aims to create long-term value for stakeholders. CFO Dilip Pal called the issuance a turning point for the company’s capital strategy. He said it will deepen Safaricom’s presence in the local debt market.

Investors can buy in multiples of KSh 10,000 above the minimum. Applications can be made via USSD 483810#, the online portal at safaricombond.e-offer.app, or through licensed stockbrokers. SBG Securities, Stanbic Bank Kenya, Standard Chartered Bank Kenya, and Dyer & Blair Investment Bank are the joint lead arrangers and placing agents.

The issuance follows other domestic note programmes in Kenya. East African Breweries PLC (EABL) received CMA approval to raise up to KSh 20 billion. EABL issued KSh 11 billion at 11.8 percent for five years. Its offer, which ran from October 27 to November 10, was oversubscribed. Safaricom’s green bond is now among the largest sustainable investments in Kenya. It provides funding for growth while supporting environmentally responsible projects.