Safaricom, led by Peter Ndegwa, launches $115m green bond

Safaricom, East Africa’s largest telecom operator, led by Kenyan executive Peter Ndegwa, has opened the first Ksh15 billion ($115.6 million) tranche of its Ksh40 billion ($308.4 million) Domestic Medium-Term Note program, with an option to raise another Ksh5 billion ($38.6 million) if demand is strong. The bond is Kenya’s largest green issuance to date. 

The proceeds will finance or refinance a portfolio of approved environmental projects, part of Safaricom’s broader push to cut its footprint and direct more resources toward sustainable operations. Under Kenyan law, interest earned on the bond is tax-exempt, giving investors the full value of their returns. 

“This Green Bond underscores our commitment to embedding sustainability at the heart of our business,” Ndegwa said. “We want to create long-term value for our stakeholders while delivering real environmental and social impact.”

Tax-free structure and subscription window 

The offer runs from Nov. 25 to Dec. 5 at a tax-free interest rate of 10.4 percent. The minimum investment is Ksh50,000, with top-ups starting at Ksh10,000. Investors can apply through the online portal or licensed brokers, making it one of Kenya’s most accessible debt offerings. 

Dilip Pal, Safaricom’s Group Chief Finance Officer, said the issue “marks a major milestone in our strategic financing plans,” adding that it allows the company to diversify funding sources and engage the local debt market more deeply. Arrangers include SBG Securities, Stanbic Bank Kenya and Standard Chartered Bank Kenya.

Safaricom’s growing footprint

Safaricom remains one of Africa’s most profitable telecom companies, serving more than 48 million customers and contributing roughly 5 percent of Kenya’s GDP through mobile-money, data, cloud and voice services. 

Ndegwa, who holds 6.2 million Safaricom shares, has sought to position the company as a central player in national development, especially as Kenya expands digital learning. The company recently unveiled a $232 million plan to modernize classrooms with devices, connectivity and teacher training. 

Safaricom reported a 52.1 percent rise in group net income to Ksh42.8 billion ($330 million) for the six months to Sept. 30, up from Ksh28.1 billion ($216.6 million) in the same period a year earlier. The gain reflects improved performance in both Kenya and Ethiopia.