Safaricom has entered a new phase in its fundraising strategy with the launch of its first bond under the Sh40 billion Domestic Medium Term Note Programme. The inaugural issuance is a Green Bond valued at up to Sh15 billion, offering Kenyans an opportunity to invest in environmentally focused projects while earning a predictable return.

Understanding What You Are Investing In

A bond operates on a simple principle: you lend money to a company for a set period, and in return, the company pays you a fixed interest rate until the bond matures. When the maturity date arrives, you receive your full principal amount back.

A Green Bond follows the same model, but the funds raised are committed exclusively to projects that support environmental sustainability.

Safaricom has confirmed that all proceeds from this first tranche will be directed into initiatives outlined under its Eligible Green Projects portfolio.

Inside the First Tranche Offer

The debut tranche is designed with accessibility in mind, making it open to the general public. Safaricom intends to raise up to Sh15 billion, with a Sh5 billion greenshoe option available if investor demand exceeds the initial target.

The bond carries a five-year tenor and offers an annual interest rate of 10.40%, allowing investors to enjoy a stable and transparent return throughout the investment term.

How to Participate in the Offer

Investing in the bond is straightforward for anyone with a CDS account. Applications can be made through any of the following channels:

• Dial *483*810# on your mobile phone

• Use the dedicated online e-offer portal

• Visit a licensed stockbroker for assistance

The minimum investment amount is Sh50,000, with any additional investments made in increments of Sh10,000.

How Safaricom Will Use the Funds

All capital raised from this bond will go towards approved green initiatives outlined in Safaricom’s Sustainable Finance Framework. These include projects related to:

• Clean and renewable energy

• Climate resilience

• Environmental conservation

• Other sustainability-focused ventures

Investors seeking more details can access the full framework through the investor relations section on Safaricom’s website.

A Tax Benefit for Investors

One notable advantage is that interest earned from certified green bonds in Kenya is generally exempt from tax. This means investors will receive the full 10.40% interest annually without any withholding tax deductions, improving their overall return.

Important Dates to Note

The offer is open from November 25, 2025, and will close on the evening of December 5, 2025. Once subscriptions are completed and allocations finalized, the bond will be listed on the Nairobi Securities Exchange (NSE) on December 16, 2025, allowing investors to trade it on the secondary market.

Where to Find the Official Documents

Investors who wish to review the full details—including the Information Memorandum and subscription forms—can find all documents on Safaricom’s Investor Relations website. These documents outline the legal and financial terms governing the bond.

Key Institutions Involved

The bond programme has been approved by the Capital Markets Authority (CMA).
The issuance is being facilitated by:

• SBG Securities

• Stanbic Bank Kenya

• Standard Chartered Bank Kenya

These institutions are acting as joint lead arrangers and advisers, supported by legal and financial experts.

What Comes Next for the Programme

While this first tranche focuses on environmental projects, Safaricom’s broader Sh40 billion note programme gives the company flexibility to issue other forms of sustainable instruments in future. Depending on funding requirements, subsequent tranches may include Social Bonds or Sustainability Bonds, enabling Safaricom to support an even wider range of impact-driven projects.

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