Safaricom to Raise $308 Million in Bonds for Infrastructure Expansion in Kenya and Ethiopia

Safaricom PLC, Kenya’s leading telecom operator, has received regulatory approval to raise approximately $308 million (KSh 40 billion) through a corporate bond to support infrastructure upgrades across its Kenyan and Ethiopian operations.

The approval was granted by the Kenya Capital Markets Authority (CMA) under Section 30A of the Capital Markets Act, allowing Safaricom to issue multiple classes of notes in various tranches, including green, social, and sustainable bonds.

“The Board of Directors of Safaricom PLC is pleased to announce that the Capital Markets Authority has approved the establishment of a Medium Term Note (MTN) programme, enabling the issuance of notes with an aggregate principal of KSh 40 billion,” said Company Secretary Linda Mesa Wambani.

Safaricom plans to launch the MTN programme with an information memorandum detailing the terms, repayment period, and pricing for the first tranche. The commencement of Tranche 1 will depend on CMA’s final approval of the pricing supplement and determination of commercial terms.

Strategic Significance and Market Context

Experts note that the bond’s performance will be influenced by Kenya’s economic conditions and benchmark interest rates, currently at 9.25%, expected to drop to 9% by the end of 2025. The funding positions Safaricom to strengthen its market dominance and enhance service delivery in both Kenya and Ethiopia, bridging the digital divide in key regions.

Safaricom, partially government-owned, controls over 65% of Kenya’s mobile market. Since its launch in 2000 with 17,000 subscribers, the company now serves over 50 million customers in Kenya and 10 million in Ethiopia.

Financial Performance and Outlook

For the six months ending September 2025, Safaricom reported voice and data revenue of KSh 200 billion (~$1.5 billion), representing 11.1% year-on-year growth, largely driven by its Kenyan operations, which contributed KSh 194 billion.

While the Kenya business continues to be the main profit driver, the Ethiopian subsidiary still records losses. The strong performance in Kenya is supported by the country’s resilient economy, with GDP growth at 5% and inflation easing to 4.6%, within the Central Bank of Kenya’s target range.

The bond programme is expected to fund the rollout of advanced network infrastructure, enabling Safaricom to expand connectivity, improve service quality, and maintain its leadership in East Africa’s telecom sector.