Safaricom Launches Ksh15B Green Bond to Support Climate Initiatives

Safaricom has launched the first tranche of Fixed Rate Green Notes under its Domestic Medium Term Note Programme, targeting up to Ksh 15 billion, with a Ksh 5 billion greenshoe option.

The notes carry a fixed interest rate of 10.40 per cent per annum over a five-year tenor. Allotment is scheduled for December 8, with listing on the Nairobi Securities Exchange on December 16, 2025.

Proceeds from the issuance will be used exclusively to finance or refinance eligible green projects under Safaricom’s Sustainable Finance Framework, reinforcing the company’s commitment to environmental stewardship and climate resilience.

Green bonds are increasingly used around the world to fund projects in renewable energy, clean transport, water management, and energy efficiency.

In Kenya, such instruments are critical for bridging funding gaps for climate-aligned development.

“We are proud to launch this first tranche of Fixed Rate Green Notes under our MTN programme,” the telco company stated.

Adding;

“This move aligns our long-term capital needs with our ambition to support sustainable development in Kenya. By directing all proceeds exclusively to green projects, we are sending a clear signal to the market that financial growth can go hand in hand with environmental responsibility.”

“Investors in this issuance are not just earning a competitive fixed return of 10.40 per cent, they are also supporting Kenya’s clean energy, climate resilience, and green infrastructure transformation. This is not just a financial instrument; it is a climate action vehicle.”

The issuance is expected to set a precedent for further green, social, and sustainability instruments in Kenya.

Listing on the NSE enhances transparency and provides liquidity, making the notes attractive to both institutional and retail investors.

Kenya’s green bond market began in 2019 when Acorn Holdings issued the first green bond, raising Ksh 4.3 billion for eco-friendly student housing.

The Kenya Green Bonds Programme, launched in 2017, has since supported the growth of sustainable finance in the country with backing from institutions like the International Finance Corporation.