Nairobi, Kenya – Safaricom PLC has launched its first-ever Green Bond, marking the start of a massive KSh 40 billion Domestic Medium Term Note (MTN) Programme.
The leading telecommunication company said the programme is part of its strategy to raise funds for strategic investments.
Speaking during the launch, Safaricom CEO Peter Ndegwa said the first part is Tranche 1, which is in the form of a Green bond.
“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,” said Peter Ndegwa, CEO, Safaricom.
Here is what you need to know about the green bond by the Nairobi Securities Exchange (NSE)-listed firm.
What is a Green Bond?
A Bond is simply a debt instrument or a loan you give to a company. The company pays you a fixed interest rate and returns the principal amount at maturity.
Green Bond(s) are unique because the funds must be used to finance projects with a positive environmental impact, like climate change mitigation and renewable energy.
Ndegwa referred to the bond as the Use of Proceeds, and 100% of the net funds from this tranche will be allocated to Eligible Green Projects.
How to buy Safaricom Green Bond
Safaricom directed potential investors to buy the Green Bond via USSD (dialling *483*810#) or through the application portal.
Investors can also visit your licensed stockbroker. You will need to have a CDS Account number to participate. Here is a snapshot of the current offering:
- Total Amount to Raise: Up to KSh 15 billion (with an option for a KSh 5 billion “greenshoe,” or extra, if demand is high).
- Tenor (Maturity Period): 5 years.
- Fixed Interest Rate: 10.40% per annum.
This offers a stable, predictable return over the next five years!
Where will the money be spent?
Safaricom PLC emphasised its commitment to a sustainable future in all operations. The company said 100% of the net proceeds will be allocated to a portfolio of Eligible Green Projects.
These projects fall under the Green Project Categories set out in Safaricom’s Sustainable Finance Framework. This ensures the investment is tied to real environmental action
Who can invest, and what is the minimum amount?
The telco said the Green bond is accessible for many investors in Kenya, with a minimum subscription of KSh 50,000.
“You can invest in integral multiples of KSh 10,000 above the minimum (e.g., KES 60,000, KES 70,000, etc.),” the company noted.
What’s the tax benefit
In line with the Kenyan Government’s efforts to promote sustainable investment, interest income from certified Green Bonds is generally tax-exempt.
This, according to the company, can significantly enhance the net return on investment in the climate-friendly security
Important dates of the Green Bond
The Tranche 1 offer opens: 8:00 am, November 25, 2025
Offer Closes: 5:00 pm, December 5, 2025
Listing Date: 16th December 2025 (on the Nairobi Securities Exchange)
Where to find the official documents?
All detailed terms and conditions, including the Information Memorandum and Subscription Forms, are available for review on Safaricom’s Investor Relations website.
Who is supporting the bond issue?
The Safaricom Domestic Medium Term Note Programme has received approval from the Capital Markets Authority (CMA).
It is supported by a team of experienced financial and legal partners, including SBG Securities Limited, Stanbic Bank Kenya, and StanChart Bank Kenya.
Discussion about this post