By The Weekly Vision Business Desk
Safaricom has been granted approval by the Capital Markets Authority (CMA) to raise KSh 40 billion via a corporate bond to fund the upgrading of its infrastructure in Kenya and Ethiopia. In a notice to investors issued on Thursday, 20 November, Safaricom confirmed that the CMA had approved the establishment of a Medium-Term Note (MTN) programme on 7 November 2025.
“The Board of Directors of Safaricom PLC is pleased to announce that the Capital Markets Authority has, on 7 November 2025, approved the establishment by the company of a Medium-Term Note (MTN) programme under which the company may issue notes in an aggregate principal amount of up to Kenya Shillings Forty Billion,” said Company Secretary Linda Mesa Wambani.
She added that Safaricom intends to launch the MTN programme shortly, together with an information memorandum and pricing supplement for the first tranche of notes. Safaricom thus joins a growing list of Kenyan companies turning to MTNs to finance expansion and ongoing operations. East African Breweries PLC (EABL) recently launched the first tranche of its own KSh 20 billion domestic MTN programme, seeking to raise up to KSh 11 billion to enhance financial flexibility and support strategic growth initiatives.
The EABL notes will rank pari passu (equally) with the company’s existing unsecured obligations, offering investors market-aligned returns through a regulated fixed-income instrument. Proceeds will be used for general corporate purposes, strengthening operations and growth ambitions while providing an attractive opportunity for both retail and institutional investors.
A Medium-Term Note (MTN) is a debt security with a typical maturity of two to five years, issued by corporations or governments to raise capital. MTNs bridge the gap between short-term commercial paper and long-term bonds, enabling issuers to access funding flexibly and continuously by drawing down tranches as required under an established programme.
[/full]
