Why Safaricom Is Tapping the Debt Market for Strategic Growth
Safaricom, Kenya’s leading telecommunications and digital services provider, is embarking on a significant financial strategy by actively engaging with the debt market. This move signals a deliberate effort to diversify its funding sources and fuel its ambitious growth plans, particularly through sustainable investments. The African tech giant recently secured approval to launch a substantial debt program, marking a new chapter in its financing endeavors and underscoring its commitment to leveraging various capital avenues.
Safaricom’s Landmark Domestic Medium Term Note Programme
The Capital Markets Authority (CMA) granted Safaricom permission on November 7 to establish a Domestic Medium Term Note (MTN) programme, an extensive debt framework valued at up to KSh 40 billion, equivalent to USD 310.08 million. This comprehensive MTN programme offers considerable flexibility, allowing Safaricom to issue various types of debt instruments, including green, social, or sustainability-linked bonds, disbursed in multiple tranches as needed. Following this pivotal approval, Safaricom officially announced, via its public channels on November 25, 2025, the issuance of the first tranche under this new framework. This initial offering will consist of fixed-rate Green Notes, aiming to raise KSh 15 billion (USD 116.28 million). Furthermore, to capitalize on robust investor interest, the offering includes a “greenshoe” option, potentially allowing Safaricom to secure an additional KSh 5 billion (USD 38.76 million) if demand proves strong. The bond comes with a fixed interest rate, providing certainty for investors.
This strategic entry into the debt market, particularly through a green bond, demonstrates Safaricom’s innovative approach to securing capital. It positions the company to fund critical infrastructure and expansion projects while aligning with global sustainability objectives, showcasing a forward-thinking financial model for a prominent player in the African telecom space.
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