🇰🇪 Safaricom Leads Kenya’s Green Finance Charge
Kenya’s telecom giant, Safaricom PLC, has issued a KSh 15 billion tax-exempt green bond — the first tranche under a broader KSh 40 billion Medium-Term Note (MTN) programme approved by the Capital Markets Authority (CMA). The offer, which opens today and runs until 5 December 2025, carries a fixed interest rate of 10.40% p.a. and minimum subscription is set at KSh 50,000 (in multiples of KSh 10,000). Business Now+2Kenya Times+2
Safaricom said the proceeds will finance and/or refinance a portfolio of eligible green projects, reinforcing its sustainability agenda and commitment to embedding ESG considerations into its core strategy. Business Now+1
📈 What the Bond Means for Kenya’s Capital Markets
This bond marks one of the largest corporate green financing efforts in Kenya to date. Analysts view it as a signal of growth in the local corporate debt market — especially for issuers aligned with sustainability goals. Technext+1
Previously, corporate bond issuance in Kenya’s debt markets had been relatively muted. Safaricom’s move may help stimulate greater investor appetite for green and sustainability-linked instruments.
🧭 Why Investors Should Care
- Tax-exempt interest: Under Kenyan law, the interest on these green bonds is exempt from income tax — making them especially attractive to institutional and retail investors alike. Business Now+1
- Use of proceeds: Funds will support network infrastructure, digital inclusion, and other eligible green projects, aligning with Kenya’s sustainable development priorities.
- Credible issuer: Safaricom has strong financial and market standing, which bolsters investor confidence in the bond’s risk-profile and the potential for strong subscription.
🌐 Broader Implications & What’s Next
Safaricom’s green issuance reflects a broader shift in Kenya and across Africa — where companies are increasingly integrating sustainability into financing decisions. It also positions Kenya as a growing hub for green finance in East Africa.
Going forward, potential developments include:
- A second tranche under the same programme (up to additional KSh 5 billion via green-shoe option) depending on demand.
- Possible rating by local/international agencies to support transparency and investor evaluation.
- Expansion of green instruments into other sectors beyond telecoms — setting precedent for market diversification.