Safaricom PLC has received regulatory approval from the Capital Markets Authority (CMA) to launch a Sh40 billion corporate bond, aimed at financing infrastructure upgrades in Kenya and Ethiopia.
The Medium-Term Note (MTN) programme enables the telecommunications giant to access long-term capital through the debt market. According to the company, the approval under Section 30A of the Capital Markets Act allows it to issue multiple classes of notes — including green, social, and sustainability bonds in various tranches.
“The Board of Directors of Safaricom PLC is pleased to announce that the CMA granted approval on November 7, 2025, for the company to establish a Medium Term Note programme, with an aggregate principal amount of up to Sh40 billion,” said Company Secretary Linda Mesa Wambani.
Safaricom plans to start the programme with the release of an information memorandum and a pricing supplement for the first tranche, known as Tranche 1. These documents will provide details on the specific terms, pricing, and tenor of the notes. However, the first issuance will depend on final commercial terms and CMA’s approval of the pricing supplement.
Corporate bonds are debt instruments that allow companies to raise capital from investors, who receive regular interest payments and repayment of principal at maturity. Unlike government bonds, corporate bonds carry credit risk linked to the issuer’s financial strength. They are often used by companies to expand operations, refinance obligations, or invest in major projects.
Analysts say corporate bonds offer predictable income streams and portfolio diversification. Companies may issue different types of bonds, including investment-grade, high-yield, or sustainability-linked notes, depending on financing needs and credit profile.
Safaricom joins East African Breweries Limited (EABL) as one of the latest companies to receive CMA approval to raise funds through corporate bonds. The performance and attractiveness of these bonds will largely depend on prevailing interest rates, economic conditions, and Safaricom’s creditworthiness.
Investors and market observers will be closely watching the launch of Tranche 1, as Safaricom positions itself to leverage long-term funding for strategic growth.
