Safaricom PLC has officially launched the first tranche under its KES 40 billion Medium Term Note (MTN) programme, marking a significant development in the Kenyan corporate debt market. This initial tranche involves a public offer of up to KES 15 billion in a five-year fixed-rate instrument designated as “green notes”.
Priced at a fixed rate of 10.40 percent per annum, the issuance is a strategic initiative by the company to raise capital specifically for financing eligible environmental projects as defined in its Sustainable Finance Framework. To accommodate potential market demand, this first tranche incorporates a greenshoe option, allowing the company to retain an additional KES 5 billion in oversubscription.
The notes have been structured as senior, unsecured financial instruments, and upon successful allotment, they will be listed on the Nairobi Securities Exchange (NSE) to provide liquidity for investors. The public offer period is scheduled to commence on 25 November 2025, at 8:00 a.m., and will conclude on 5 December 2025, at 5:00 p.m.
The minimum application amount has been set at KES 50,000, with subsequent investments to be made in multiples of KES 10,000 thereafter. The allotment process is set for 8 December 2025, with formal notifications to be sent to successful applicants on the following day, 9 December 2025.
The critical dates for qualified institutional investors include an issue and payment date of 11 December 2025. Subsequently, the Central Depository & Settlement Corporation (CDSC) accounts will be credited with the allotted notes on 15 December 2025, culminating in the official listing and commencement of trading on the NSE on 16 December 2025. This offer is restricted to the Kenyan market, and the notes will be governed exclusively by the laws of Kenya.
Safaricom Asserts Market Leadership with Landmark Issuance
This corporate debt issuance by Safaricom occurs within a context of robust activity in the market. The offering’s structure and timing follow closely on the heels of other successful corporate issuances, such as East African Breweries PLC’s recent tranche, which attracted KES 16.76 billion in bids against a KES 11 billion target. The moves by EABL and Safaricom to issue debt in the local capital markets point to a revival in Kenya’s corporate bond market.
Other notable participants in this active market include the Kenya Mortgage Refinance Company and Family Bank. With the launch of its KES 40 billion MTN programme, Safaricom now positions itself as the largest active issuer in the corporate debt market, underscoring its scale and the significant investor appetite for high-quality paper from leading Kenyan corporations.
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