Listed telco giant Safaricom launched a Sh40 billion Medium-Term Note (MTN) Programme, on the 25th November with an invitation to the public to invest.
Expected to close on Friday 5th, December 2025, Safaricom says the funds will be used in one of its most significant infrastructure upgrades in years.
The move comes as the telco giant grapples with a soaring energy bill, now averaging Ksh5B monthly, to power its nationwide network of 7,000 base stations, commonly referred to as boosters.
The funds raised from this issuance will help the company modernise these sites with more efficient and reliable energy systems like solar. A share of the proceeds of the issuance will also be channeled towards refinancing part of its existing liabilities.
The bond allows Safaricom to raise funds gradually as need arises. For the first round, the firm is seeking Ksh15B but has set aside room to take up an additional Ksh5B if investor demand exceeds expectations, or a ‘green-shoe option’.
Investors will earn a 10.4 percent annual return, making the bond one of the more competitive fixed-income opportunities currently available to retail investors.
While bond investing may feel distant to first-time investors, the mechanism is straightforward: you lend Safaricom money, and Safaricom pays you interest each year until the bond matures. In structure and spirit, it mirrors the government bond market, except the borrower here is a listed company rather than the state.
How a first-time investor can participate
A first-time investor can invest in the Safaricom bond in a few steps:
Step 1: Open a CDS account.
The starting point is the CDS account, the electronic account through which all shares and bonds in Kenya are held. This account is issued through the Central Depository System, which is the electronic platform where all shares and bonds traded on the Nairobi Securities Exchange are held. The CDS system replaced the old era of paper certificates, offering secure digital ownership and much faster transaction processing.
Opening a CDS account is straightforward. One simply visits a licensed stockbroker or custodian bank and fills out an account-opening form. You will require passport photos and a copy of your national ID. Once completed, the investor receives a CDS number, which acts as the gateway to all future transactions in the capital markets. This is your permanent investment account number.
Step 2: Prepare your documents.
Once you have the CDS number, you will need:
· Your CDS account number
· A copy of your National ID (front and back)
· A copy of your KRA PIN certificate
· An application form (which you can fill in online, through USSD, or physically)
Step 3: Choose how to apply.
Safaricom has made this part very easy. You can apply through:
USSD – Dial *483*810# on your phone and follow the prompts.
Online portal – Visit https://safaricombond.e-offer.app/ and fill in your details.
Both options will guide you through the application, step by step.
Step 4: Wait for allocation and make payment.
After applying, Safaricom reviews all applications and allocates the notes. If you are successful, you will be informed how much you have been allocated, and you will then make payment through the instructions provided. After allocation, successful applicants make payment and immediately begin accruing the 10.4 percent return. At maturity, Safaricom returns the entire principal investment to the investor.
The minimum amount of investment is Ksh50,000
For many first-time investors, this programme offers an opportunity to enter the capital market through a product that is structured, regulated and tied to a familiar corporate name.