Safaricom, a prominent Kenyan telecommunications company, has received official approval to raise approximately $308 million (Sh40 billion) through a corporate bond. This significant fundraising initiative is intended to support the company's ongoing efforts to upgrade its infrastructure across both its Kenyan and Ethiopian operations.
In a formal announcement to its stakeholders, Safaricom detailed that the approval was granted by the Kenyan Capital Markets Authority (CMA) under the provisions of Section 30A of the Capital Markets Act. This regulatory framework empowers the company to issue various classes of notes, structured in multiple tranches, to facilitate the fundraising process.
The establishment of this bond program signifies Safaricom's strategic approach to securing long-term capital through the debt market. The company plans to issue notes, potentially including green, social, and sustainable notes, as part of this fundraising effort.
The Company Secretary, Linda Mesa Wambani, stated, "The Board of Directors of Safaricom PLC are pleased to announce that the Capital Markets Authority has, on November 7, 2025, approved for the Company to establish a Medium Term Note (MTN) programme pursuant to which the Company will issue noted in an aggregate principal amount up to Kenya Shillings Forty Billion."
Following this approval, Safaricom intends to launch the program by releasing an internal memorandum. This document will provide comprehensive details regarding the specific terms of the offer, including the repayment period and pricing of the notes. The issuance of the first tranche of notes is anticipated to commence shortly after the public release of this memorandum.
The company further elaborated, "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."
While Safaricom is actively preparing for the launch of Tranche 1, the official commencement of the issuance is contingent upon the finalization of commercial terms. Furthermore, the company awaits the CMA's final approval of the pricing supplement before proceeding with the public launch.
Industry experts have highlighted that the success and appeal of this corporate bond will be significantly influenced by prevailing economic conditions in Kenya, particularly interest rates. The current benchmark interest rate set by the Central Bank of Kenya stands at 9.25%, with projections indicating a potential decrease to 9% by the close of 2025.
Strategic Infrastructure Investment for Market Leadership
With the potential to raise $310 million, Safaricom is strategically positioning itself to reinforce its dominant standing as Kenya's leading mobile network operator. The planned infrastructure upgrades are expected to enhance the company's service delivery capabilities and contribute to bridging the digital divide across both Kenya and Ethiopia.
Safaricom, which benefits from partial government ownership, currently commands over 65% of the Kenyan mobile market share. The company, which began its operations in 2000 with 17,000 subscribers, has experienced substantial growth and now serves more than 50 million customers in Kenya and over 10 million customers in Ethiopia.
In the financial period spanning the six months ending September 2025, Safaricom reported impressive revenues from voice and data services, totaling KSh 200 billion, which is equivalent to approximately $1.5 billion. This figure represents an 11.1% year-over-year growth, largely driven by the performance of its Kenyan subsidiary, which contributed KSh194 billion to the total revenue.
The company's operations in Kenya continue to be the primary engine for its profitability. Its Ethiopian subsidiary is still navigating a period of losses. The robust performance in Kenya has been supported by the country's resilient economy, which has experienced GDP growth of 5% and a decline in inflation to 4.6%, aligning with the targets set by the Central Bank of Kenya.