Safaricom Secures KES 15 Billion Sustainability Linked Loan in ESG Deal

Safaricom, Kenya’s leading telecommunications provider, has secured a KES 15 billion Sustainability Linked Loan (SLL) in a landmark deal to drive its Environmental, Social, and Governance (ESG) agenda. The loan, which can be increased to KES 20 billion, is the largest ESG-linked facility in East Africa and the first such deal denominated in Kenyan Shillings. The agreement underscores Safaricom’s commitment to sustainable business practices and its broader strategic shift towards becoming a fully-fledged technology company by 2025.

“This funding will unlock our ability to create more diversified investments that support transformative technologies, systems, and services, enabling us to comprehensively manage our ESG footprint,” said Peter Ndegwa, CEO of Safaricom PLC. “It is a significant milestone for Safaricom as it aligns our financial strategy with our sustainability agenda—a reflection of our commitment to transforming lives by partnering for growth.”

The SLL facility was arranged by a consortium of four major banks: Standard Chartered Bank, Stanbic Bank, ABSA Bank, and KCB Bank. The loan will allow Safaricom to access capital based on its progress in meeting specific ESG milestones, including reducing its carbon emissions to achieve Net Zero targets, enhancing gender diversity, and monitoring social equality impacts.

Standard Chartered Bank, which acted as the Global Coordinator, Sustainability Coordinator, and Mandated Lead Arranger for the deal, highlighted the importance of the agreement for Kenya’s financial landscape. Kariuki Ngari, CEO of Standard Chartered Kenya, said, “This significant milestone indicates the continued momentum towards building a more robust, sustainable, and diversified financial ecosystem in the region. Across the market, we are seeing accelerated interest in sustainable finance products alongside more considered strategies for climate initiatives.”

Ngari further emphasized the broader implications of the loan: “We are enthusiastic about this partnership with Safaricom, as it positions Kenya as a regional leader in inclusive and responsible investment.”

The other banks involved in the consortium also played a critical role in structuring the deal. Kenya Commercial Bank (KCB) acted as the Mandated Lead Arranger, while Stanbic Bank Kenya and ABSA Bank Kenya both served as Arrangers. This collaboration between some of the largest financial institutions in the region reflects the growing significance of sustainability-linked financing in East Africa’s corporate landscape.

The loan aligns with the Kenyan government’s Vision 2030, which prioritizes sustainable development across key economic sectors. By securing this funding, Safaricom aims to deepen its focus on strategic ESG initiatives as part of its ongoing transformation. According to Ndegwa, the funding is not only a step forward for Safaricom but also for the broader market: “This deal paves the way for further sustainability financing in the region as companies seek to become more accountable for their ESG reporting and financing.”

In particular, the company is expected to use the funds to invest in cutting-edge technologies aimed at reducing its carbon footprint and tracking ESG-related performance. These efforts will contribute to the growth of Kenya’s sustainable financing market and could inspire more businesses to pursue similar initiatives. Safaricom’s transition to a technology-driven company by 2025 places it at the forefront of the shift toward sustainable business models in Africa.