Safaricom PLC has received regulatory approval to establish a Medium-Term Note Programme worth up to KES 40 billion, marking a significant step for the Nairobi-listed telecommunications company as it seeks to diversify its funding channels and strengthen its long-term capital position.
The approval, granted by Kenya’s Capital Markets Authority (CMA) on 7 November 2025, allows the company to issue notes in separate tranches under what will be known as the Safaricom Medium-Term Note Programme.
According to the company, the programme will include various forms of notes, such as green notes, social notes and sustainability-linked notes, depending on market conditions.
Safaricom disclosed the development in a public announcement issued on 20 November 2025, indicating that it intends to launch the programme with a detailed information memorandum and a pricing supplement that will outline the terms of the first tranche of notes.
The first issuance, referred to as Tranche 1, will only proceed once its commercial terms have been finalised and approved by the CMA.
The company said the planned bond programme is established under Section 30A of the Capital Markets Act and in accordance with the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2023.
These regulations set out the legal framework for public offers and the issuance of securities in Kenya. Safaricom did not immediately indicate the size or timing of the first tranche but stated that further announcements will be made “in due course.”
The company emphasised that the pricing supplement and information memorandum will provide complete details to investors ahead of the offer opening.
The introduction of the Safaricom Medium-Term Note Programme signals the company’s intent to tap the domestic capital markets to secure longer-term funding.
Such instruments typically allow corporates to raise capital over extended periods with more predictable repayment structures.
Although the announcement does not specify the intended use of the funds, firms usually deploy MTN proceeds to support capital expenditure, refinance existing debt or fund strategic investments.
In recent years, Safaricom has undertaken several large-scale infrastructure and technology projects to support network expansion, digital transformation and new services. The creation of a bond programme gives the company an additional financial tool that may support these ambitions.
The company also indicated that the MTN Programme will accommodate sustainability-themed notes. This could potentially open the door for instruments tailored to environmental or social impact criteria, aligning with global trends in sustainable financing. However, any such issuance would still require CMA approval through corresponding pricing supplements.
The company stressed that its public announcement had been approved by the CMA, in line with the requirements of Kenya’s securities regulations. The regulator’s oversight ensures that the information provided to the public meets the necessary disclosure standards.
A disclaimer included in the announcement notes that while the CMA has approved the issuance of the public announcement itself, the Authority does not assume responsibility for the accuracy of the statements contained in Safaricom’s communication. This is consistent with standard practice whereby issuers bear responsibility for the content of their disclosures.
With approval secured, Safaricom will now focus on finalising documentation for the inaugural tranche of the programme. The company did not commit to a specific timeline but signalled that the first issuance will depend on prevailing market conditions and the company’s internal considerations.
The launch of the Safaricom Medium-Term Note Programme could become one of the largest corporate bond initiatives in Kenya in recent years by potential size. The indication that the programme may include sustainability-linked instruments may also broaden its appeal to ESG-focused investors, depending on the eventual structure of the notes.
In the announcement, Linda Mesa Wambani, Safaricom’s Company Secretary, formally notified the market on behalf of the company’s Board. She reiterated that additional information will be communicated in future public disclosures.
The announcement was issued with the participation of several financial institutions, including SBG Securities, Stanbic Bank, Standard Chartered and Bowmans, which appear to be supporting the process in advisory and transaction-related capacities.
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