Fixed returns, renewable energy focus, and a KES 50,000 entry point; here’s what you need to know about Safaricom’s first tranche offering
Safaricom has received regulatory approval to issue the first tranche of notes under its KES 40 billion Domestic Medium-Term Note Programme. The offering is worth up to KES 15 billion, with an additional KES 5 billion greenshoe option, and it comes with a compelling environmental angle; it’s a green note.
During a recent media briefing, Safaricom CFO Dilip Pal addressed the elephant in the room: speculation that these funds might be channeled to the company’s Ethiopian operations. He was unequivocal that the proceeds will stay in Kenya, financing a portfolio of eligible green projects.
The funds will support:
- Network site upgrades to energy-efficient technology
- Renewable energy transitions, replacing diesel-powered sites with solar and advanced battery systems
- Infrastructure modernization, phasing out legacy base stations in favor of low-carbon alternatives
For a company operating thousands of network sites across the country, energy costs represent a significant operational expense. Shifting to renewable energy reduces both carbon emissions and long-term costs.
Dilip Pal also highlighted a critical financial strategy behind this issuance. Safaricom currently carries floating-rate debt; loans where interest payments fluctuate with market conditions. Kenyans witnessed the pain of this firsthand last year when benchmark rates surged, driving up borrowing costs across the economy.
The medium-term note offers a fixed rate of 10.40% per annum over a 5-year tenor. For Safaricom, this means:
- Predictable interest payments, making financial planning more stable
- Protection against future rate increases
- A more diversified debt portfolio that balances risk
For investors, it means knowing exactly what return to expect, regardless of what happens to market rates over the next five years.
So Who Can Invest?
One of the most significant aspects of this offering is accessibility. Safaricom has structured the note to welcome a broad spectrum of investors: Retail investors, Institutional investors, Pension funds, Saccos, Family offices, et cetera.
The requirements are straightforward:
- A CDS (Central Depository System) account number
- A minimum investment of KES 50,000
- Additional investments in multiples of KES 10,000
- Application through USSD or the online portal
By setting the entry point at KES 50,000 and enabling USSD-based applications, Safaricom has intentionally lowered traditional barriers that often keep retail investors out of corporate debt instruments. This democratization of access aligns with broader efforts to deepen Kenya’s capital markets and bring more participants into formal investment channels.
Green bonds and notes have gained traction globally as investors increasingly seek opportunities that deliver both financial returns and environmental impact. Safaricom’s green note offers both; a fixed 10.40% annual return while funding the transition to cleaner energy infrastructure.
This first tranche represents more than a fundraising exercise. It signals Safaricom’s commitment to sustainable operations, its confidence in Kenya’s capital markets, and its willingness to bring everyday investors along for the journey.
With regulatory approval secured and application channels open, the question for potential investors is straightforward: does a 5-year, 10.40% fixed-rate return tied to renewable energy projects fit your portfolio?
The note offer opened at 8:00 AM on November 25, 2025 and will close at 5:00 PM on December 5, 2025. That gives potential investors a tight 10-day window to evaluate the opportunity and submit applications.
