Safaricom has taken a big step towards sustainable financing by issuing Kenya’s biggest tax-free Sh15 billion Green Bond as part of its Sh40 billion Medium-Term Note Program. This change makes it possible for regular investors to support environmentally beneficial projects while getting consistent, tax-free income.
Interest is growing among retail players who want to combine making money with doing good for the world as the membership period goes until December 5, 2025.
The Green Bond is more than just a way to raise money; it shows that telecom companies like Safaricom are changing the way they do business to be more environmentally friendly.
The money will go towards green initiatives in Kenya and Ethiopia, such as switching sites to solar power, upgrading networks to use less energy, and adding renewable energy to 4G and 5G infrastructure.
These efforts align with Safaricom’s 2030 vision to become Africa’s leading purpose-led tech company, reducing carbon footprints while enhancing connectivity in underserved areas.
At its heart, this green bond functions as a fixed-income instrument where investors lend capital to support verified sustainable endeavours. Unlike traditional corporate bonds, it carries a “green” certification, ensuring funds target climate-positive activities such as wastewater management, green transport solutions, and biodiversity preservation.
The 10.4 per cent annual interest rate, paid semi-annually in June and December, comes without the 15 per cent withholding tax typically applied to similar securities, effectively boosting net yields to around 12.35 per cent compared to taxable alternatives like East African Breweries’ recent offering.
Safaricom’s Group Chief Finance Officer, Dilip Pal, highlighted the innovation during the November 25 launch. “This transaction marks a major milestone in our strategic financing plans, enabling us to diversify funding sources and tap into the local debt capital market,” Pal stated.
He emphasised the bond’s accessibility, noting it as the first in Kenya to permit mobile-based subscriptions via USSD code *48*3810# or the dedicated platform at https://safaricombond.e-offer.app. This digital-first approach democratises investment, allowing Kenyans from all walks to participate without needing physical branches or complex paperwork.
For those ready to dive in, the process is straightforward and inclusive. First, secure a Central Depository and Settlement Corporation (CDSC) account if you lack one, a standard requirement for Nairobi Securities Exchange-listed instruments.
Existing shareholders can retrieve their account details through Image Registrars. Once set, log in via the online portal, dial the USSD code, or contact a licensed stockbroker like SBG Securities, Stanbic Bank Kenya, Standard Chartered Bank Kenya, or Dyer & Blair Investment Bank, who serve as joint lead arrangers and placing agents.
Next, choose how much you want to pledge, beginning with a small sum of Sh50,000 and going up in Sh10,000 steps until you reach the whole Sh15 billion goal. If demand goes up, there is also a Sh5 billion “greenshoe” option that could make the rise go up to Sh20 billion.
You may fill up the application online or via your broker, and allocations will be made soon after the offer ends. The notes are senior and unsecured, but Safaricom’s strong balance sheet backs them up. They will be listed on the NSE by December 16, 2025, so that people may trade them again.
This issuance arrives amid favourable market conditions, with Central Bank of Kenya policies curbing high-interest Treasury bids to stabilise rates. It contrasts with Safaricom’s prior Sh15 billion sustainability-linked loan from banks last year, offering broader public access and lower entry barriers.
Early buzz on social media sites like X shows how many people are looking forward to the shopping event. Users are sharing suggestions on how to get the most returns; for example, a Sh1 million share produces roughly Sh52,000 every six months or Sh8,600 a month, with full repayment of the principle at the end of the five-year term.
Investing here not only benefits you personally, but it also makes Safaricom more resilient against Ethiopia’s operational problems. In the most recent half-year report, losses dropped to Sh15.2 billion, a Sh4.2 billion improvement.
It also helps make up for lost voice income due to market saturation by speeding up data-driven growth. It currently serves over 10 million subscribers in Ethiopia alone, with 55 percent coverage.
A big concern for those who may want to join is whether they are eligible for collective entities. Yes, registered organisations like investment clubs, saccos, or businesses may buy this Safaricom tax-free green bond.
Official FAQs say that both people and businesses may participate as long as they have a registered CDSC account and the right documents, such as official registration certificates and board decisions that provide the go-ahead for the acquisition. This openness makes the bond more accessible, allowing community-based investors to combine their money for bigger stakes and more varied portfolios.
Experts think this is a triumph for Kenya’s green finance ecosystem, and it might encourage other banks and energy companies to do the same.”Environmental, social, and governance instruments like this often trade at a ‘greenium’ premium, attracting sustainability-focused capital at competitive rates,” noted market analyst Jane Okello.
With half-year profits soaring 52.1 per cent to Sh42.8 billion, Safaricom’s timing couldn’t be sharper, blending fiscal strength with forward-thinking ethos.
Smart investors are being told to move quickly as the clock ticks down to December 5. You can find all the information you need, including the Information Memorandum, on Safaricom’s investor relations website.
This Green Bond isn’t just a chance; it’s a call to action for Kenyans to put money into a greener future, one Sh50,000 at a time. This bond is a great addition to any plan, whether you’re a first-time bondholder or a seasoned portfolio builder. It offers tax-free yields of 10.4 percent and has a real influence on the environment.
