Safaricom wins CMA approval for a KSh40bn sustainability bond programme to fund green energy, digital expansion and social-impact projects.

Safaricom Wins Approval to Raise KSh40bn Through Green and Social Bonds

NAIROBI, Kenya —Safaricom PLC has secured approval from the Capital Markets Authority (CMA) to establish a KSh40 billion Medium Term Note (MTN) Programme, paving the way for the telco to issue green, social and sustainability-linked bonds in one of Kenya’s largest corporate fundraising plans this year.

The approval allows Safaricom to raise the funds in phases as it continues its shift from a mobile operator into a regional technology and digital-finance company. The programme gives the company room to issue up to KSh40 billion (USD 260 million) in bonds to institutional and retail investors.

Safaricom said proceeds from the green and social notes will fund projects that reduce emissions, expand digital connectivity and support community programmes — aligning the issuance with global sustainability-finance trends.

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What the Approval Allows

The CMA approval gives Safaricom flexibility to issue tranches over multiple years based on market conditions. The regulator has also directed the telco to comply with Kenya’s Sustainable Finance Guidelines, ensuring transparent reporting on environmental and social outcomes.

Safaricom said it will launch the first tranche soon and publish an Information Memorandum on its investor relations page.

“This programme is a significant step in our journey as a purpose-led technology company,” the company said. “It reinforces our commitment to not only growing our business but doing so in a way that positively impacts our environment and community.”

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Boost for Kenya’s Sustainable-Finance Market

The issuance is expected to strengthen Kenya’s fast-growing sustainable-finance landscape, which has recently seen strong uptake of corporate debt from issuers like EABL and Centum Real Estate.

Regional sustainable-finance champion FSD Africa has repeatedly highlighted Kenya’s improving transparency and maturing capital markets, positioning it as a rising ESG investment destination.

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Why Safaricom Needs the Funding

Safaricom is investing in several priority areas, including:

• Rolling out 5G and modernising its network
• Expanding solar and renewable-energy installations
• Scaling operations in Ethiopia
• Upgrading M-Pesa’s cloud-based payments infrastructure
• Deepening financial-inclusion initiatives across East Africa

The MTN structure provides access to long-term capital at potentially lower cost than bank borrowing, while attracting global ESG-focused investors.

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Understanding the Green, Social and Sustainability Notes

Under CMA rules:

• Green bonds support renewable-energy, energy-efficient or climate-resilience projects
• Social bonds fund digital learning, health initiatives, SME support and financial inclusion
• Sustainability bonds combine both categories

Safaricom — which has committed to reaching net-zero emissions by 2050 — expects strong interest from international asset managers seeking high-quality ESG instruments from Africa.

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Strong Investor Demand Expected

Analysts say Safaricom’s robust fundamentals and predictable cash flows make its MTN programme likely to be oversubscribed.

The company maintains a market capitalisation of KSh560 billion (USD 3.6 billion) on the Nairobi Securities Exchange.

“Safaricom meets the hallmarks of a successful sustainable-bond issuer — strong governance, transparency and credible ESG reporting,” said a Nairobi-based fixed-income strategist.

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How the MTN Structure Works

Under the CMA-approved programme:

• Safaricom may issue multiple tranches up to KSh40 billion
• Each tranche may have its own tenor and interest rate
• Funds must be ring-fenced for eligible green or social projects
• Annual impact reports must be published
• Independent auditors must verify performance
• CMA will monitor compliance

This mirrors MTN structures widely used globally to match financing needs with market conditions.

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Broader Impact on Kenya’s Capital Markets

Safaricom’s entry into sustainability-linked debt is expected to spur similar issuances by Kenyan banks, utilities and infrastructure firms. Kenya’s sovereign green-finance strategy has already set the stage for increased ESG-oriented capital inflows.

“This approval positions Kenya as East Africa’s emerging green-finance hub,” said a Nairobi analyst. “Safaricom’s participation significantly elevates the market.”

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Conclusion

Safaricom’s KSh40 billion MTN Programme marks a major milestone for the country’s corporate-debt market and its broader ESG ecosystem. With CMA approval, the telco can now issue sustainability-linked bonds funding renewable energy, digital systems and community initiatives — offering investors a strong gateway into East Africa’s expanding sustainable-finance market.

Safaricom posts 52% rise in H1 2025 net income to KSh 42.8 billion, boosted by Kenya growth and narrowing Ethiopian losses.

Safaricom Plc (NSE: SCOM) reported a 52.1% increase in group net income to KSh 42.8 billion (~US$293 million) for the six months ended September 30, 2025. The strong results reflect growth in Kenya and an improved performance in Ethiopia, which hit 10 million users this May.

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Kenyan Operations Lead the Charge

In Kenya, net income grew 22.6% to KSh 58.2 billion, service revenue increased 9.3% to KSh 194 billion, and EBIT rose 13.1% to KSh 89.5 billion. The gains were driven by M‑PESA and higher mobile-data usage.

Group-wide service revenue reached KSh 199.9 billion, up 11.1%, highlighting continued domestic momentum. Analysts attribute this growth to an expanded customer base and higher one-month active users.

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Ethiopia: Losses Narrow

Safaricom’s Ethiopian subsidiary reduced losses by 20.1% to KSh (15.5 billion) despite currency and pricing challenges. (Safaricom Ethiopia) The improved performance signals progress in one of Africa’s fastest-growing but complex telecom markets.

Three-month active users in Ethiopia jumped 83.7% to 11.2 million, and one-month active users rose 90% to 8.51 million. Mobile data accounted for 66.7% of revenue, followed by voice at 22.1% and messaging at 11.2%.

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Digital Services Driving Growth

M‑PESA remains the largest revenue contributor. The platform’s earnings grew 14% to KSh 88.06 billion (~US$681 million). Growth was supported by increased transaction frequency and a broader merchant network. (Nation Africa)

Mobile-data revenue in Kenya rose 13.4% to KSh 40.3 billion due to higher 4G/5G usage and new time-based bundles. Fixed services and IoT revenue grew 9.5% to KSh 9.8 billion, raising Safaricom’s fixed-internet market share to 34.3%.

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Leadership Commentary & Strategy

Group CEO Peter Ndegwa said:

“This is a strong set of results and a solid start to our Vision 2030 strategy cycle. We are focused on segment-led execution and integrated solutions.”

The company also emphasized investments in communities. Its Citizens of the Future program will benefit 500 schools, provide 10,000 scholarships, and support over 56,000 digital literacy beneficiaries over five years.

In Ethiopia, the Safaricom Ethiopia Foundation invested ETB 650 million in education, youth, and economic empowerment projects.

“We have transformed the lives of over 22 million Kenyans through the Safaricom and M‑PESA Foundations. Purpose drives our growth,” Ndegwa added.

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Market Value and Investor Perspective

Safaricom remains the most valuable stock on the Nairobi Securities Exchange, with a market capitalization of KSh 1.2 trillion (~US$9.3 billion). This represents nearly 40% of total NSE equity value.

The share price has risen 75.4% year-to-date, reflecting investor confidence. For global investors, Safaricom’s performance demonstrates how telecoms can combine a mature domestic market with frontier expansion in Africa.

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Strategic Significance for International Markets

Safaricom’s growth story highlights:

• How mobile money and data services can reshape telecom revenue models.
• The potential of African frontier markets, like Ethiopia, despite macroeconomic challenges.
• The importance of balancing domestic stability with strategic regional expansion.

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Outlook

Looking ahead, Safaricom aims to expand digital finance services and connectivity in Kenya while achieving sustainable profitability in Ethiopia. Analysts expect the company to leverage its integrated platforms to maintain strong growth, demonstrating that African telecoms can deliver scalable digital-first business models.

“Our journey over the past 25 years has been defined by purpose and innovation,” Ndegwa said. “We remain anchored in purpose, driving sustainable growth and positive change.”

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Safaricom’s 2025 Sustainability Report reveals $7.3 billion in total impact, setting a new ESG benchmark for African companies.

NAIROBI, Kenya – Kenya’s largest telecom, Safaricom Plc, on Tuesday released its 2025 Sustainable Business Report, reporting a total impact of KES 1.1 trillion ($7.3 billion) across social, environmental, and economic spheres. The figure far exceeds its financial profit and highlights the company’s commitment to linking business performance with societal benefits.

The report, published on October 8, was launched in Nairobi during Safaricom’s 25th anniversary celebrations. It frames sustainability as a central part of the company’s strategy.

“Sustainability is not an obligation for us; it is a business imperative,” Safaricom CEO Peter Ndegwa said at the launch. “Every shilling we earn should generate positive impact for people and the planet.”

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Economic and Social Contributions

Safaricom said it contributed KES 809 billion to Kenya’s GDP through operations and value chain effects. The company also supports roughly 1.3 million jobs through agents, suppliers, and service providers.

“Foreign investors watch Safaricom as closely as South African banks,” said Aly-Khan Satchu, a Nairobi-based market analyst. “Its sustainability reporting sets a regional benchmark.”

The company highlighted how its digital financial services have helped expand economic inclusion. The Lipa Mdogo Mdogo plan has increased smartphone penetration from 44% to 50%, allowing more Kenyans access to mobile banking, e-learning, and health services.

Meanwhile, its DigiFarm platform issued KES 945 million in loans to 169,000 farmers, with 36% going to women and 17% to youth.

“Digital inclusion is a development accelerator,” Ndegwa said. “Every connected farmer or student becomes part of a new digital economy.”

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Environmental Initiatives

The company reported planting 830,000 trees and restoring 694 hectares of degraded land in eight counties. These efforts bring the cumulative total to 2.3 million trees toward a 2030 goal of 5 million.

Through its M-PESA Green Points program, Safaricom collected 190 tonnes of e-waste and 62 tonnes of plastic, achieving a 99% recycling rate. It also fenced 15 kilometers of Kakamega Forest to prevent illegal logging.

“We need the private sector to treat climate action as an economic opportunity,” said Festus Ng’eno, Kenya’s Principal Secretary for Environment. “Safaricom shows how companies can lead by example.”

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Governance and Risk Management

Safaricom achieved ISO 27701 certification for privacy management and reported cutting fraud cases by 87% using AI. It also tightened supplier due diligence and governance practices to align with the UN Sustainable Development Goals.

However, analysts say independent verification is vital for global investors.

“Impact numbers are impressive, but markets will demand third-party audits,” said Lisa Wentworth, ESG strategist at Ashbourne Advisory, London.

The company also disclosed a KES 30 billion sustainability-linked loan to finance green projects, including solar network sites and community initiatives.

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Challenges Ahead

Despite progress, Safaricom acknowledged obstacles. Converting remote network sites from diesel to solar or hybrid energy is costly and will take years. Currency fluctuations and supply-chain issues could also slow progress toward net-zero emissions by 2050.

“Balancing profitability with sustainability in Kenya and across East Africa will define Safaricom’s next decade,” said Satchu.

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Regional and Global Implications

Safaricom’s disclosure sets a template for African companies seeking to combine profits with social impact. Transparency International Kenya praised the report and urged similar accountability from other corporations.

“Corporate sustainability is no longer just a Western concern,” said Sheila Masinde, executive director of Transparency International Kenya. “Safaricom demonstrates that African firms can lead the conversation.”

The report will feed into Kenya’s Nairobi Securities Exchange ESG ratings for 2025–26. Analysts expect investors to study the data closely for independent verification, green financing potential, and risk assessments.

“The next growth phase for Kenya’s capital markets depends on ESG-linked investments,” said Kennedy Mburu, senior economist at KCB Capital. “Safaricom provides credibility to that shift.”

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Outlook

Safaricom’s 2025 Sustainable Business Report illustrates how a major African company can measure and communicate its total societal value. If verified, its initiatives in renewable energy, digital inclusion, and environmental restoration could attract more international ESG-focused investors to Africa’s tech and telecom sectors.