Corporate borrowing in Kenya hits Ksh2T, CMA says
By Kenneth Mwenda, November 25, 2025Kenya’s corporate bond market is expanding rapidly, with turnover at the Nairobi Securities Exchange (NSE) reaching approximately Ksh2 trillion by November 2025.
This marks a 30 per cent increase from the full-year turnover of Ksh1.544 trillion in 2024, according to the Capital Markets Authority (CMA).
The growth highlights the increasing role of corporate debt in Kenya’s financial sector and reflects strong investor confidence in domestic companies.
Speaking during East African Breweries Limited (EABL)’s corporate bond bell-ringing ceremony on Tuesday, November 25, 2025, CMA CEO, represented by Director of Market Operations Daniel Warutere, emphasised that corporate bonds are critical for businesses and investors.
“Corporate bond issuances expand financing options for businesses, offer longer-term investment opportunities for savers, and contribute to a resilient market with an effective price-discovery mechanism,” he said.
Globally, corporate debt markets are growing. The Organisation for Economic Co-operation and Development (OECD) reports that by the end of 2023, outstanding global corporate bonds reached about USD 34 trillion.
In 2024, companies worldwide issued roughly USD 8 trillion in new bonds, taking advantage of favourable conditions to invest and refinance. CMA notes that these global flows influence investor appetite, pricing benchmarks, and best practices in Kenya.
Corporate bonds drive growth
EABL has been at the forefront of corporate borrowing in Kenya. The company raised Ksh16.76 billion in the first tranche of its Ksh20 billion Medium-Term Note (MTN) Programme, surpassing the initial target of Ksh11 billion.
Investor demand exceeded expectations, with applications for the notes reaching more than 152 percent of the original target. The brewer exercised its green-shoe option to absorb the additional Ksh6 billion, remaining within the programme limit approved by CMA.
The notes issued on November 18, 2025, mature on November 18, 2030, and carry a fixed annual coupon rate of 11.80 percent, payable semi-annually. All successful applicants will have their notes credited to their Central Depository and Settlement Corporation (CDSC) accounts, with the notes expected to list on the NSE on 25 November 2025.
EABL’s MTN Programme will support the company’s long-term capital needs and strategic business initiatives.
Safaricom Plc is also making strides in corporate borrowing. The telecom company recently secured CMA approval to establish a Ksh40 billion MTN programme, which allows it to issue various types of notes, including green, social, and sustainability-linked instruments, in multiple tranches.
The first tranche, launched on November 25, 2025, targets up to Ksh15 billion with a Ksh5 billion green-shoe option.
The Safaricom notes will offer a fixed annual interest rate of 10.40 per cent over a five-year tenor. The company has committed that proceeds from Tranche I will be fully allocated to environmentally friendly projects under its Sustainable Finance Framework.
Investors can purchase the notes through banks and investment firms, including KCB, NCBA, Stanbic, Cooperative Bank, ABSA, DTB, Family Bank, and I&M Bank. The notes are expected to list on the NSE on December 9, 2025.
CMA’s statistics and recent corporate bond activities demonstrate a growing domestic appetite for long-term debt instruments. Investors are increasingly willing to back companies with strong financial performance and clear strategic direction, while businesses can access competitive financing options beyond traditional bank loans.