Safaricom to raise $308m in bonds for infrastructure upgrade in Kenya and Ethiopia

Safaricom, a Kenyan Telecoms company, has secured regulatory approval to raise approximately $308 million (Sh40 billion) through a corporate bond. The potential fund will help the telecoms giant upgrade its infrastructure across its Kenyan and Ethiopian markets. 

In a public announcement to stakeholders, Safaricom explained that the fundraising was approved by the Kenyan Capital Markets Authority (CMA) under Section 30A of the Capital Markets Act. The framework allows the company to issue various classes of notes in multiple tranches. 

For Safaricom, the bond program positions it to raise long-term capital through the debt market and issue notes, such as green, social and sustainable notes for the fund raise. 

“The Board of Directors of Safaricom PLC are pleased to announce that the Capital Markets Authority has, on November 7, 2025, approved for the Company to establish a Medium Term Note (MTN) programme pursuant to which the Company will issue noted in an aggregate principal amount up to Kenya Shillings Forty Billion,” the Company Secretary, Linda Mesa Wambani, said.

In addition, the telecoms company will launch the programme with an internal memorandum detailing the specific terms of the offer, repayment period and pricing. The first tranche is expected to commence once the document is publicly released.

“The company intends to launch the MTN programme with an information memorandum and a pricing supplement for the issuance of the first tranche of notes,” the company stated. 

While Safaricom is preparing for Tranche 1, the commencement is still subject to the determination of final commercial terms. It will also await CMA’s final approval of the pricing supplement before public launch.

In what appears to be a significant development for Safaricom, experts have noted that the performance and attractiveness of the corporate bond will be influenced by Kenya’s internet rate and economic conditions. The current benchmark rate set by the Central Bank of Kenya is 9.25% and is expected to fall to 9% by the end of 2025.

Also Read: Safaricom wins Ksh1.1bn case against man who claimed M-Pesa apps were his idea.

$310 million potential raise: a significant stride for Safaricom

With a $310 million raise in view, Safaricom is positioning itself to extend its lead as Kenya’s most preferred mobile network operator. The infrastructure upgrade will enable the company to serve better and bridge the digital divide in Kenya and Ethiopia.

The telecoms company, partially owned by the government, controls over 65% of the Kenyan market. The company, which launched with 17,000 subscribers in 2000, has now grown to serve more than 50 million customers in Kenya and over 10 million in Ethiopia.

In the six months ending September 2025, Safaricom reported voice and data revenue of KSh 200 billion (~$1.5 billion), representing an 11.1% year-over-year (YoY) growth. The result was powered by its Kenyan subsidiary, which accounted for KSh194 billion.

The company’s Kenya business has continued to be the main profit driver, with losses still lingering over its Ethiopian subsidiary. The performance in Kenya was attributed to its economy, which showed resilience, with GDP growth at 5% and inflation easing to 4.6%, within CBK targets.