Safaricom to Channel Green Bond Proceeds into Clean Energy Network Upgrades

Safaricom has announced that proceeds from the first tranche of its Sh40 billion bond will be invested in projects aimed at cutting down the company’s reliance on diesel to run its network operations.

Energy costs make up a significant portion of Safaricom’s operating expenses. Nearly half of the company’s total costs are tied to running the network, and about half of that amount goes toward powering infrastructure across the country.

According to Group Chief Finance Officer Dilip Pal, the initial Sh15 billion raised will be directed toward expanding the use of solar energy at more base transmission sites. The investment will also support systems designed to reduce dependence on electricity from the national grid and diesel-powered generators.

Pal emphasized that the use of the funds will be subject to strict oversight. Independent third-party auditors will verify and validate the projects, and Safaricom will publish regular reports detailing how the bond proceeds are deployed.

He further clarified that none of the funds will be allocated to Safaricom’s operations in Ethiopia. The Ethiopian venture, which is still in its early stages and recording start-up losses, is being financed separately through a mix of local and international borrowing, as well as vendor financing supported by shareholders.