Safaricom PLC has received approval to raise up to KES 40 billion from local and international investors by issuing what are known as Medium-Term Notes (MTNs), a move that marks the largest bond programme of its kind in Kenya’s history. The approval, granted by the Capital Markets Authority (CMA), signals strong investor confidence in both Safaricom and the country’s financial markets.
What are MTNs?
For many people unfamiliar with the world of finance, MTNs can sound complicated. But the basic idea is simple: Safaricom is borrowing money from the public and promising to repay it with interest over a set period.
Instead of taking a bank loan, the company sells “notes” (a type of IOU) to investors. These investors can be individuals, pension funds, banks, or international institutions looking for safe and reliable returns.
Unlike ordinary loans, MTNs give a company flexibility. Safaricom will not raise the entire KSh 40 billion at once. Instead, it can issue the notes in smaller portions over time—depending on its financing needs and market conditions. This makes MTNs useful for long-term projects, strategic investments, or expansion plans.
What makes Safaricom’s programme even more significant is that the company can issue special types of notes, including green, social, and sustainability notes. These are financial instruments tied to projects with environmental or social benefits.
For example:
- Green notes may support projects that reduce the company’s carbon footprint or improve energy efficiency.
- Social notes could fund digital inclusion programmes, health initiatives, or support for vulnerable communities.
- Sustainability notes blend both environmental and social benefits.
By opening the door to these options, Safaricom aligns itself with a global shift toward responsible and impact-driven investing. Investors around the world are increasingly seeking opportunities that not only generate returns but also contribute positively to society.
The approval is also a boost for the Nairobi Securities Exchange (NSE) and Kenya’s wider capital markets. Large, well-structured bond programmes like this attract global capital, deepen market liquidity, and enhance Kenya’s reputation as a regional financial hub. For the NSE, it demonstrates the growing maturity of the market and its ability to support multi-billion-shilling corporate fundraising.
With this programme in place, Safaricom now has a powerful tool to finance its next phase of growth, including network expansion, technological innovation, and sustainability initiatives while investors get a secure opportunity to earn interest from one of East Africa’s most stable companies.
