Safaricom PLC’s Group Chief Finance Officer, Dilip Pal, has described the overwhelming success of the company’s inaugural green bond issuance as a resounding endorsement of the telco’s strategy and a powerful signal of maturing depth in Kenya’s domestic capital markets.
The first tranche of Safaricom’s KES 40 billion Medium-Term Note Programme closed with applications totalling KES 41.4 billion – a 175% oversubscription against the initial KES 15 billion target. Exercising a full KES 5 billion greenshoe option,
Safaricom raised KES 20 billion in what is now Kenya’s largest-ever green bond, with proceeds earmarked for sustainable projects including renewable energy transitions and energy-efficient infrastructure.
“This marks Safaricom’s return to the capital markets – deliberate, strategic, and built for the future,” Pal said. “What makes our DMTN programme special is how it reshapes the way we think about funding the business. It gives us flexibility to tap into broader pools of liquidity and strengthen the resilience of our capital structure.”
He highlighted the programme’s pioneering structure as Kenya’s first to accommodate multiple issuance types – green, vanilla, and others – within a single framework, allowing alignment with evolving market conditions and sustainability priorities.
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Pal emphasised the symbolic importance of launching with a green bond: “Delivering Kenya’s largest green bond, built on a structure that sets new benchmarks and distributed digitally, feels quintessentially Safaricom – bold, innovative, and transformational.” The oversubscription, he added, “is more than a number – it’s a clear vote of confidence in our fundamentals, our strategy, our long-term outlook, and growing confidence in Kenya’s capital market.”
Retail investors dominated participation, with many subscribing via M-PESA, underscoring the bond’s accessibility. The five-year notes, offering a 10.40% coupon and tax-exempt status, were listed on the Nairobi Securities Exchange following a bell-ringing ceremony.
Pal extended gratitude to investors, partners, and teams, stating: “A heartfelt thank you to everyone who made Kenya’s largest green bond a reality.” The success reinforces Safaricom’s position as an innovative, agile issuer driving the evolution of Kenya’s debt capital markets.
