Kenyan investors bet big on Safaricom’s sustainability strategy
Kenyan investors have cast a resounding vote of confidence in Safaricom’s green future, pouring billions into the telco’s sustainability strategy during the official listing of its first-ever Green Bond at the Nairobi Securities Exchange (NSE) today.
The listing of the Domestic Medium-Term Note (MTN) programme was defined by a massive oversubscription of 175 percent. While the telecommunications giant initially sought to raise KES 15 billion, the market responded with applications totaling KES 41.4 billion. Consequently, Safaricom has announced it will take up KES 20 billion, exercising a KES 5 billion “green-shoe” option, to accelerate its transition into an eco-friendly digital ecosystem.
Speaking during the bell-ringing ceremony at the NSE, Safaricom PLC Group Chief Finance Officer Dilip Pal termed the transaction a significant milestone for local capital engagement.
“This transaction demonstrates what is possible when local capital markets are deliberately and thoughtfully engaged. It is a clear vote of confidence in our fundamentals, strategy, and long-term outlook, and a strong signal of confidence in the depth and resilience of Kenya’s capital markets,” said Mr. Pal.
The “bet” on sustainability was notably driven by the grassroots market. In a striking show of retail support, 2,453 individual investors accounted for 96 percent of the total applications. Safaricom revealed that 59 percent of these applications were processed via USSD and paid for through M-PESA, signaling that ordinary Kenyans are increasingly using digital channels to access complex financial instruments previously dominated by institutional players.
Mr. Pal noted that the proceeds from the bond are ring-fenced for specific investments under the company’s Sustainable Finance Framework. He explained that the funds will finance the transition to an energy-efficient digital future, specifically citing the solarisation of network sites to reduce reliance on the national grid and diesel generators.
According to Safaricom, proceeds will finance investments that support an energy-efficient digital future, including 5G deployment, solarisation of network sites, and the transition from legacy technologies to cleaner, more efficient solutions.
The listing reflects a strategic shift in how Safaricom funds its growth, positioning the capital markets as a scalable source of long-term financing alongside traditional banking avenues. Beyond the company’s own balance sheet, the successful issuance affirms the capacity of Kenya’s capital markets to mobilize resources for productive, climate-smart investments.
Safaricom affirmed its commitment to deepening participation in the capital markets through continued innovation. The company pointed to initiatives such as Ziidi, its mobile money market fund, which has already lowered barriers to saving and investing, as evidence of its intention to bring capital market products closer to everyday Kenyans.
The Green Bond is now officially listed and available for trading on the Nairobi Securities Exchange.
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