Kenya’s leading telecom operator, Safaricom PLC, has received approval from regulators to raise approximately $308 million (KSh 40 billion) through a corporate bond programme to fund network infrastructure upgrades in Kenya and Ethiopia.
The Kenya Capital Markets Authority (CMA) authorised the initiative under Section 30A of the Capital Markets Act, enabling Safaricom to issue multiple types of notes in tranches, including green, social, and sustainable bonds.
“The Board of Safaricom PLC is pleased to announce that CMA has approved the establishment of a Medium Term Note (MTN) programme, allowing the issuance of notes with an aggregate principal of KSh 40 billion,” said Company Secretary Linda Mesa Wambani.
The company will release an information memorandum outlining the terms, repayment schedule, and pricing of the first tranche. Tranche 1 will begin once CMA approves the final pricing supplement and commercial terms are determined.
Market Implications and Strategic Importance
Analysts say the success of the bond will be influenced by Kenya’s economic conditions and benchmark interest rates, currently at 9.25% and expected to decline to 9% by year-end. The funds will help Safaricom consolidate its market position and enhance connectivity across Kenya and Ethiopia, narrowing the digital divide.
Partially government-owned, Safaricom dominates over 65% of Kenya’s mobile market. From 17,000 subscribers at launch in 2000, the company now serves more than 50 million customers in Kenya and 10 million in Ethiopia.
Financial Performance and Future Outlook
In the six months ending September 2025, Safaricom posted voice and data revenue of KSh 200 billion (~$1.5 billion), reflecting 11.1% year-on-year growth, mainly driven by its Kenyan operations contributing KSh 194 billion.
While the Kenyan business remains the primary profit engine, losses continue in Ethiopia. Kenya’s resilient economy, with GDP growth at 5% and inflation easing to 4.6%, has supported the telecom’s strong performance.
The bond proceeds will fund network expansions and upgrades, enabling Safaricom to improve service quality, expand coverage, and maintain its leadership position in East Africa’s telecom sector.
