- The Capital Markets Authority (CMA) allowed Safaricom to issue a corporate bond for massive infrastructure upgrades
- The telecommunications firm intends to increase network growth in Ethiopia and improve cash flow for the subsidiary
- A group of regional banks recently provided the company with a multi-billion-shilling sustainability bond
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
Safaricom has received approval from the Capital Markets Authority (CMA) to issue a KSh 40 billion public bond for infrastructure improvements in Kenya and Ethiopia.
Source: Twitter
The telecommunications company will issue the bond in tranches, boosting the country’s bond market after the East African Breweries Limited (EABL) raised KSh 16.7 billion.
Why is Safaricom issuing a corporate bond?
The telco is looking for billions of shillings to expand its 4G and 5G networks while increasing its data business to counteract a drop in mobile calls, where saturation has caused a slight drop in revenue.
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One of Safaricom’s fastest-growing income streams is data, and the company projects significant business growth from rising smartphone usage.
The telecom provider intends to increase network growth in Ethiopia and improve cash flow for the subsidiary in which it holds a 53.7% share.
“The Board of Directors of Safaricom PLC is pleased to announce that the Capital Markets Authority in exercise of its powers under Section 34 of the Capital Markets Act (Chapter 485A of the Laws of Kenya), has granted approval for the company to establish a medium term note programme pursuant to which the company will issue notes in an aggregate principal amount of up to KSh 40 billion (the MTN programme) in various tranches,” the company secretary, Linda Mesa Wambani, stated in a notice published in the Daily Nation and The Standard on Thursday, November 20, 2025. ‘
Business Daily reported that the telco is expected to invest between KSh 72 billion and KSh 78 billion on capital expenditures in the financial year ending March 2026, with KSh 54 billion to KSh 57 billion spent in Kenya.
It plans to spend KSh 18 billion to KSh 21 billion in Ethiopia.
Why Safaricom’s debt increased
Earlier, a group of regional banks, including KCB, Absa Bank Kenya, Standard Chartered Bank Kenya, and Stanbic Bank Kenya, provided it with a KSh 30 billion sustainability-linked green bond.
Source: Twitter
The green bond is one type of fixed-income instrument designed especially to raise funds for environmental and climate projects.
Recent capital expenditures at Safaricom’s new Ethiopian subsidiary have raised the company’s debt and financing costs.
How much profit did Safaricom make?
Previously, TUKO.co.ke reported that Safaricom’s profit soared by 52% in the first half of the 2025/2026 financial year.
During the period under review, the telco’s profit increased to KSh 42.8 billion from KSh 28.1 billion in a similar period in 2024.
This came after the company cemented its status as the country’s biggest telecom provider after surpassing the 50 million subscriber milestone in the local market.
Source: TUKO.co.ke
