Safaricom Gets Regulatory Nod to Launch Sh40 Billion Medium-Term Note Programme
Safaricom CEO Peter Ndegwa. [COURTESY X]
Safaricom PLC has secured approval from the Capital Markets Authority (CMA) to establish a Sh40 billion Medium Term Note (MTN) Programme, positioning the telco for long-term, diversified fundraising as it deepens investment in network expansion, digital services, and sustainability-linked initiatives.
The approval, granted on November 7, 2025, allows Safaricom to issue various notes—including green, social, and sustainability bonds—in several tranches. This marks the company’s most significant move into the domestic bond market since its landmark Sh12 billion corporate bond in 2009, which was heavily oversubscribed and remains one of the most successful issuances in Kenya’s capital markets history. Since then, Safaricom has largely relied on bank facilities, internal cash flows, and reinvested earnings to power its growth.
In recent years, however, the company has been ramping up capital expenditure to support its Ethiopia entry, 5G rollout, fintech infrastructure, and climate-aligned investments. Safaricom’s ongoing participation in the Joint Venture powering Safaricom Ethiopia, its acquisition of a mobile money licence in the same market, and rising regulatory compliance costs have increased the need for more flexible, medium-term financing options.
The MTN Programme therefore gives the telco a structured path to raise capital incrementally, while appealing to institutional investors seeking sustainable investment instruments—an area that has gained traction since the government’s debut Sh28 billion green bond framework and the growing issuance of sustainability-linked notes by corporates.
Safaricom says it will soon issue Tranche 1 once the information memorandum and pricing supplement are finalized. These documents will detail the offer structure, interest terms, and investor conditions for the public issuance. The tranche will only proceed after CMA approves the final pricing supplement.
Analysts say the move could help deepen Kenya’s corporate bond market, which has struggled with low activity following past failures such as the collapsed Chase Bank and Imperial Bank bonds. A successful Safaricom issuance—backed by the company’s strong balance sheet and strategic sustainability agenda—could restore investor confidence in the segment.
The public notice, signed by Company Secretary Linda Mesa Wambani, indicates that the company will make further disclosures on the timing and structure of the first tranche in the coming weeks.