Kenya’s leading telco, Safaricom PLC, has obtained approval from the Capital Markets Authority (CMA) to launch a new debt‑raising initiative worth up to Ksh 40 billion.
In an announcement, published on 20 November 2025, the company says the CMA gave its approval on November 7, 2025 under Section 30A of the Capital Markets Act.
“The Board of Directors of Safaricom PLC … are pleased to announce that the Capital Markets Authority … has on 7 November 2025, approved for the Company to establish a Medium‑Term Note programme … pursuant to which the Company will issue notes in an aggregate principal amount of up to Kenya Shillings Forty Billion (KES 40,000,000,000),” the board stated.
This new framework, known as a Medium‑Term Note (MTN) programme, allows Safaricom to issue a range of debt instruments in multiple tranches, rather than a single large issuance.
In particular, the company emphasises that the notes may take the form of green bonds, social bonds, or sustainability‑linked notes, reflecting a growing trend of linking investment capital to environmental and social outcomes.
Safaricom says the first tranche (Tranche 1) will be launched once it publishes an information memorandum and a pricing supplement.
These documents will provide details such as the interest rate, maturity (tenor), and investor eligibility. However, the company notes that the actual issuance remains subject to final commercial terms being agreed and CMA approval of the pricing supplement.
From a strategic perspective, the timing and structure of this move make sense. Safaricom has signalled increased capital expenditure needs, especially as it expands its network operations in Kenya and neighbouring Ethiopia.
Observers note that the company is shifting away from short‑term borrowings and seeking to lock in longer‑term, shilling‑denominated funding thereby reducing foreign exchange risk and aligning debt servicing with its core operations.
The Kenyan corporate debt market is also waking up after a period of relative dormancy.
Scattered alongside this was the recent quoted success of East African Breweries Limited (EABL), which raised Ksh 16.76 billion in a bond issuance that was significantly oversubscribed. Safaricom’s large‑scale move is being seen as a sign of growing investor appetite for high‑quality corporate paper in Kenya.
The approval by the CMA sets the stage for Safaricom’s ambitious fundraising plan—combining traditional capital raising with modern sustainability‑linked options.
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