Safaricom PLC has received regulatory approval from the Capital Markets Authority (CMA) to launch a KES 40 billion Medium-Term Note (MTN) programme, marking one of the largest corporate debt issuances in Kenya’s telecom sector to date.
The programme will enable Safaricom to issue multiple tranches of notes, including green, social, and sustainability-linked instruments, to support infrastructure upgrades in Kenya and Ethiopia, as well as fund innovation and long-term sustainability initiatives.
“The Board of Directors of Safaricom PLC are pleased to announce that the Capital Markets Authority has on November 7, 2025, granted approval for the Company to establish a Medium Term Note programme pursuant to which the Company will issue notes in an aggregate principal amount of up to Kenya Shillings Forty Billion,” said Company Secretary Linda Mesa Wambani.
Strategic Timing and Market Context
Safaricom’s entry into the bond market comes just days after East African Breweries PLC (EABL) closed Tranche 1 of its KES 20 billion MTN with a 152.4% oversubscription, attracting KES 16.76 billion in bids against a KES 11 billion target. CMA later approved the full allocation at an 11.80% coupon, signalling strong investor appetite for high-grade corporate paper.
The timing of Safaricom’s move is also aligned with its evolving debt strategy. According to its unaudited half-year results, short-term borrowings surged by KES 13.1 billion to KES 55.8 billion as of September 2025, prompting a shift toward longer-term capital instruments.
What to Expect from Tranche 1
Safaricom confirmed it will initiate the programme with the release of an information memorandum and pricing supplement for Tranche 1. These documents will detail the offer’s terms, including pricing, tenor, and investor eligibility.
“The Company intends to launch the MTN Programme with an information memorandum and a pricing supplement for the issuance of the first tranche of notes,” the announcement read.
The first issuance remains subject to final commercial terms and CMA’s approval of the pricing supplement. Safaricom will issue further updates as preparations advance.
Market Confidence and Capital Markets Impact
The Nairobi Securities Exchange (NSE) welcomed the move, with CEO Frank Mwiti stating:
“Safaricom PLC’s approval to raise KES 40 billion ($310 million) via the NSE is a massive vote of confidence in our local capital markets. It demonstrates that NSE is the premier platform for serious, long-term funding at scale.”
The MTN programme positions Safaricom as a key player in Kenya’s corporate bond market, offering institutional and retail investors access to diversified instruments aligned with ESG goals.
About Corporate Bonds
Corporate bonds are debt instruments issued by companies to raise capital from investors, who receive regular interest payments and principal at maturity. Unlike government bonds, they carry varying levels of credit risk based on the issuer’s financial strength. Safaricom’s offering includes sustainability-linked options, reflecting global trends in responsible investing.
