SAFARICOM CLEARED BY CMA TO LAUNCH KSh 40 BILLION FUNDRAISING BOND PROGRAM
Safaricom Plc has received approval from the Capital Markets Authority (CMA) to establish a Medium-Term Note (MTN) program aimed at raising up to KSh 40 billion.
The authorization for this fundraising initiative was granted by the CMA on November 7, 2025, enabling Safaricom to issue corporate bonds in multiple tranches rather than a single issuance.
The company’s Board of Directors conveyed their satisfaction with the CMA’s green light, noting that the bond program could include various types of bonds such as green, social, or sustainability bonds.
“The Board of Directors of Safaricom PLC (the Company) is pleased to announce that the Capital Markets Authority, in exercise of its powers under Section 30A of the Capital Markets Act (Chapter 485A of the Laws of Kenya), has on 7 November 2025, approved for the Company to establish a Medium-Term Note programme,” said Safaricom’s Board of Directors.
These bonds are designed to support environmental and community projects, aligning with Safaricom’s commitment to sustainable development.
Safaricom plans to kick off the program by releasing a detailed information memorandum and pricing supplement for the first tranche of bonds, known as Tranche 1.
The issuance will proceed once the terms are finalised and receive further CMA clearance.
“This announcement has been issued with the approval of the Capital Markets Authority pursuant to the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2023 as amended from time to time.
As a matter of policy, the Capital Markets Authority assumes no responsibility for the correctness of the statements appearing in this announcement,” said the telecommunications company.
This approach allows investors to participate in phases, spreading risk and potentially enhancing accessibility.
This move by Safaricom comes in the context of its strategic debt management and expansion efforts.
After clearing a significant US$400 million loan used for its Ethiopia expansion in 2023, Safaricom has reduced foreign currency exposure and is now turning to local capital markets to secure shilling denominated funding.
The funds raised are expected to support ongoing operations, technology upgrades, and growth plans, including enhancing 4G and 5G infrastructure and expanding commercial activities in Kenya and Ethiopia.
The bond issuance follows the successful oversubscription of a KSh 16.7 billion bond by East African Breweries Ltd (EABL), signaling strong investor appetite for well structured corporate bonds in Kenya’s markets.
The introduction of the Safaricom bond program is expected to further deepen the country’s capital markets and provide diversified funding sources for one of Kenya’s leading telecommunications firms.
Safaricom will continue to update the public on this program in the coming days