Safaricom Plc has received approval from the Capital Markets Authority (CMA) to establish a Medium-Term Note (MTN) programme worth up to Ksh40 billion, according to a public announcement on Thursday, November 20, 2025.

The programme allows the company to issue various types of notes, including green bonds, social notes, and sustainability-linked notes, in multiple tranches.

“The Board of Directors of Safaricom PLC (the Company) are 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, granted approval for the Company to establish a Medium Term Note programme, ” said Company Secretary Linda Mesa Wambani.

“Persuant to which the Company will issue notes in an aggregate principal amount of up to Kenya Shillings Forty Billion (KES 40,000,000,000) (the “MTN Programme”) in various tranches. Under the MTN Programme, the Company may issue various forms of notes, including green notes, social notes or sustainability notes.”

Under the MTN programme, Safaricom will issue the notes in separate tranches. The first tranche, referred to as Tranche 1, will be launched with an information memorandum and a pricing supplement. These documents will detail the specific terms of the offer, including pricing, tenor, and participation requirements.

“The Company intends to launch the MTN Programme with an information memorandum and a pricing supplement for the issuance of the first tranche of notes,” the announcement read.

“The Company intends to launch the MTN Programme with an information memorandum and a pricing supplement for the issuance of the first tranche of notes under the MTN Programme (Tranche 1). The information memorandum and pricing supplement will contain the detailed terms and conditions for the public offer of the notes.”

The first issuance will still be subject to CMA approval of the corresponding pricing supplement and the final determination of commercial terms. Safaricom said it will provide further updates as preparations for Tranche 1 progress.

“The issuance of Tranche 1 is subject to the determination of the final commercial terms of the offer and approval by the CMA of the corresponding pricing supplement. The Company will make further announcements regarding the issuance of Tranche 1 in due course.””

Boosting expansion and investment

The MTN programme is expected to support Safaricom’s ongoing expansion and investment plans in Kenya and the wider region. By issuing corporate bonds, the company can raise long-term capital while managing financial risk effectively.

Unlike government bonds, corporate bonds carry credit risk based on the issuing company’s financial strength, but they also offer investors regular interest payments and portfolio diversification.

Safaricom’s move follows a trend among major Kenyan corporates. East African Breweries Limited recently completed a successful bond issuance, raising Ksh16.76 billion in its first tranche, well above its initial target of Ksh11 billion. The strong response indicates that investor appetite for reputable domestic companies remains high.

By including green, social, and sustainability-linked notes, Safaricom is also aligning its fundraising with projects that have environmental and social benefits. While the company has not specified the exact projects, these instruments are generally designed to fund initiatives that contribute positively to society or the environment.

Safaricom’s new MTN programme comes after the company cleared a Ksh52 billion foreign-denominated loan in November 2023. This repayment reduced foreign currency exposure and lowered the company’s risk from exchange rate fluctuations.