Safaricom has announced the issuance of up to KES 15 billion in fixed-rate green notes, marking the first tranche under its KES 40 billion Domestic Medium Term Note Programme approved by the Capital Markets Authority on November 7, 2025.
The five-year senior unsecured notes carry a fixed coupon of 10.40 percent per annum, payable semi-annually, with an additional KES 5 billion greenshoe option in case of oversubscription. The issuance opened on November 25, 2025, with allotment scheduled for December 8 and listing on the Nairobi Securities Exchange fixed-income segment on December 16, 2025.
Proceeds from the green notes will be used exclusively for eligible projects under Safaricom’s Sustainable Finance Framework, which has received a Second Party Opinion from an independent reviewer. Key focus areas include achieving net-zero carbon emissions by 2030, expanding renewable energy use across network infrastructure, scaling e-waste and plastic recycling programmes, restoring degraded land, and advancing gender diversity and financial inclusion initiatives.
Speaking at the launch, Safaricom Group Chief Executive Officer Dr Peter Ndegwa said the issuance demonstrates the company’s commitment to integrating sustainability into core business operations. “These green notes enable us to channel capital directly into projects that deliver measurable environmental and social impact while offering investors an attractive, sustainable investment opportunity,” Ndegwa stated.
The transaction is arranged by Standard Chartered Bank Kenya, KCB Bank Kenya, Stanbic Bank Kenya, and Absa Bank Kenya as joint lead arrangers and green structuring advisers.
Safaricom’s Sustainable Finance Framework aligns with the International Capital Market Association Green Bond Principles and the Loan Market Association Sustainability-Linked Loan Principles. An independent external reviewer has confirmed that all funded projects meet strict eligibility criteria for carbon reduction, resource efficiency, and social inclusion.
The company has already deployed renewable energy solutions at over 1,000 network sites and aims to transition its entire base station portfolio to low-carbon sources by 2030. Additional projects include expanding the M-PESA Green Points recycling network and restoring 694 hectares of degraded land in partnership with local communities.
Investor participation is open to qualified institutional investors, high-net-worth individuals, and retail investors through licensed stockbrokers and placing agents. Minimum subscription is KES 100,000, with increments of KES 10,000 thereafter.
The issuance follows Safaricom’s 2025 Sustainable Business Report, which recorded a total economic contribution of KES 983 billion and supported 1.28 million jobs across its ecosystem. The green notes are expected to attract both conventional and impact-focused investors seeking exposure to Kenya’s growing sustainable finance market.
