Safaricom has received approval to create a KSh 40 billion Medium-Term Note programme. The programme allows the company to issue green, social, and sustainability notes to investors. This gives Safaricom a chance to connect its financing with climate and social impact goals.
Green notes raised through the programme can be directed toward environmental projects. These could include renewable energy upgrades, energy-efficient systems, or low-carbon infrastructure. It shifts the company’s debt strategy toward investments that support climate action.
Safaricom has existing ESG targets that align with green financing. These include reducing emissions and expanding renewable energy use across network sites. This creates a natural link between fundraising and environmental performance.
Funds from the MTN programme could upgrade telecom sites with solar power. They could also support efficient digital infrastructure that lowers energy demand. Such investments cut emissions while improving service reliability.
Local investors will play a key role in the programme’s success. The MTN structure allows pension funds and asset managers to invest in sustainability-focused debt. This strengthens Kenya’s domestic green capital market.
Clear reporting will be essential for green credibility. Investors will expect transparency on how the funds are used. Impact data will determine whether the notes deliver real climate benefits.
Not every tranche may be green, and investor appetite will shape outcomes. Weak demand or unclear reporting could limit climate impact. The structure still creates an important pathway for sustainable investment.
Safaricom’s MTN programme signals a shift in Kenya’s corporate financing landscape. It shows that large companies can raise capital tied to environmental goals. If implemented well, it could direct billions toward climate-positive growth in Kenya.
