When Safaricom PLC opened subscriptions for its KSh 40 billion Domestic Medium-Term Note (MTN) Programme on November 25, 2025, Nairobi’s capital markets took notice.
The programme’s debut tranche, a KSh 15 billion green bond carrying a 10.4% fixed coupon and exempt from withholding tax, quickly became the most talked-about security on Kenya’s financial timeline.
With subscriptions running until December 5 and room for an extra KSh 5 billion if demand peaks, the offer is designed with a simple premise: any Kenyan with KSh 50,000 can participate. No institutional badge, no insider access, just a CDS account and a valid KRA PIN.
It is a rare moment in Kenya’s bond market, where corporate issuances remain modest compared to the trillions channelled into government securities, and where green finance has long been dominated by multinational lenders. This time, retail investors get a seat at the table.
Safaricom’s Green Turn and Why It Matters
Safaricom, long synonymous with M-Pesa and digital infrastructure, is widening its financing strategy. The MTN programme approved by the Capital Markets Authority on November 7 gives the telco the opportunity to issue a mix of conventional, social, sustainability, and green notes over several years.
What sets the first tranche apart is its exclusive focus on eligible green projects across Kenya and Ethiopia.
These include renewable-energy upgrades, energy-efficient data centres, low-carbon network expansion, and other decarbonisation initiatives tied to Safaricom’s 2030 sustainability commitments.
CFO Dilip Pal described the offer as “a major milestone combining innovation and accessibility,” while CEO Peter Ndegwa emphasised that the bond “puts sustainability at the centre of our business.”
Against a backdrop where outstanding corporate bonds total KSh 25.9 billion, Safaricom’s entry signals a potential green-debt revival following EABL’s oversubscribed KSh 17 billion issuance earlier in the year.
Who qualifies? A Bond Built for the Many, Not the Few
Safaricom’s green bond is intentionally broad-based. As a public offer under Kenyan capital markets law, it is open to everyday savers, pension schemes, banks, fund managers, corporates, and Kenyans abroad, provided they hold a CDS account.
The eligibility landscape is captured below:
| Investor Type | Eligibility Basics | Why It Fits |
|---|---|---|
| Retail Individuals | Kenyan residents (or diaspora with CDS accounts); minimum KSh 50,000 | A tax-free yield that outpaces money-market funds and T-bills; easy mobile access |
| Institutions (pension funds, banks, fund managers) | Licensed under CMA; no upper limit | ESG-compliant fixed income with transparent reporting |
| High-Net-Worth & Diaspora Investors | CDS account; minimum KSh 50,000 | Strong yield, tax benefit, and NSE liquidity |
| Corporates / Qualified Investors | entities | Portfolio diversification and ability to take up larger allocations |
Investors must be 18+, KRA-compliant, and able to fund allocations via banking channels or M-Pesa. Non-residents can participate, though forex rules may apply.
Inside the Bond: Terms Designed for Market Appetite
This inaugural green tranche blends attractive pricing with transparency requirements that global ESG standards now demand.
Safaricom will ring-fence proceeds under its Green Bond Framework and publish annual audits on project impact and use of funds.
| Feature | Details |
|---|---|
| Offer Size | KSh 15B base + KSh 5B greenshoe (up to KSh 20B) |
| Tenor | 5 years (maturity ~2030) |
| Coupon | 10.4% p.a., fixed, semi-annual payments |
| Tax Treatment | Interest fully exempt—no 15% withholding tax |
| Minimum Investment | KSh 50,000, then KSh 10,000 increments |
| Allotment & Listing | Allotment Dec 8; NSE listing Dec 16 |
| Security | Senior, unsecured; backed by Safaricom’s AAA rating |
In practical terms, the bond offers a rare combination in Kenya’s fixed-income market: high yield, strong credit, and a complete exemption from interest taxation.
How to Apply: A Simple On-Ramp for First-Time Investors
Safaricom has built multiple pathways for participation, with a deliberate nod to retail convenience. Investors first need a CDS account, which can be opened at no cost through any licensed broker, investment bank, or placing agent.
Once the CDS account is active, applications can be made through one of three channels:
• USSD — Dial 483810# on a Safaricom line for a straightforward, mobile-based application.
• Online Portal — Via safaricombond.e-offer.app, where investors upload identification documents and fund their subscriptions digitally.
• Brokerage Houses & Banks — Including SBG Securities, Stanbic, Standard Chartered, Dyer & Blair, KCB Capital, NCBA Investment Bank, and others for those who prefer advisory support.
Funds are remitted through M-Pesa or EFT. Successful applicants receive digital allotment notices on December 8, after which the notes settle directly into their CDS accounts. Interest payments begin after listing on the Nairobi Securities Exchange on December 16.
Oversubscription is likely, in which case allocations will be made on a pro-rata basis though early applicants historically face fewer cuts.
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The Bigger Picture: Why the Bond Matters for Kenya’s Green Finance Future
Kenya’s green-bond story began in 2017 under IFC guidance, with the Acorn student-housing issue breaking ground.
Since then, the local market has expanded to more than KSh 50 billion, but activity has been irregular. Safaricom’s sizeable, tax-advantaged tranche could mark a turning point one where sustainability-linked debt becomes mainstream rather than niche.
For investors, the appeal is straightforward: a 10.4% tax-free return in a market where T-bill rates average below 10% and inflation pressures remain manageable.
For Safaricom, the MTN programme diversifies funding for energy-intensive operations in Kenya and Ethiopia. And for the country, the deal positions Nairobi as an emerging green-finance hub, aligning domestic capital with climate-aligned infrastructure.
The risks are clear: market liquidity may vary once listed, inflation can erode real returns, and corporate bonds remain less traded than government paper.
Yet Safaricom’s balance sheet strength makes default a remote scenario, and the bond’s tax shield boosts its real yield relative to comparable assets.
Bottom Line: A Retail-Friendly Gateway to Sustainable Investing
Safaricom’s green bond is more than a fundraising tool and an open invitation for Kenyans to participate in the country’s sustainability journey while earning competitive, tax-free income. Anyone with KSh 50,000 can apply before December 5, whether through USSD, the online portal, or a broker.
In a market hungry for credible, yield-bearing alternatives, this bond stands out as one of the year’s most accessible and high-impact opportunities. For investors betting on Kenya’s low-carbon future, it may be the easiest entry point yet.
Safaricom’s green bond Overview
Safaricom’s growing interest in sustainable finance has sparked conversations around a potential Safaricom green bond, with investors also eyeing the appeal of a Safaricom tax-free bond should the telco pursue such an option.
As demand for high-quality corporate debt rises, a future Safaricom bond issuance would likely attract strong uptake, especially among income-focused investors monitoring Safaricom bonds rates and the overall Safaricom bonds interest rate environment in Kenya.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
