Safaricom PLC has secured a new Ksh 15 billion sustainability-linked loan, adding to a similar Ksh 15 billion facility obtained last year, bringing the total amount to Ksh 30 billion.
This marks the largest sustainability-linked loan in East Africa, with funding provided by a consortium of four leading banks—Kenya Commercial Bank (KCB), ABSA, Standard Chartered, and Stanbic Bank.
The loan facility is aimed at advancing Safaricom’s Environmental, Social, and Governance (ESG) agenda.
It is expected to accelerate the telco’s transformation into a full-fledged technology company, with a particular focus on reducing its carbon footprint, promoting gender diversity, and tracking its social impact.
Safaricom has set a goal to become a Net Zero carbon-emitting company by 2050.
CEO Peter Ndegwa stated that the funding will be used for significant investments in technology and services, allowing the company to elevate its sustainability goals.
“This deal paves the way for us to align our sustainability agenda with financial growth, ensuring that we transform lives through strategic initiatives,” Ndegwa said.
Standard Chartered has acted as the Mandated Lead Arranger, Bookrunner, and Global Coordinator for the loan, while KCB, Stanbic, and ABSA played key roles as arrangers. Safaricom CFO Dilip Pal emphasized the alignment of sustainability and financing strategies, further solidifying the company’s commitment to ESG principles.
Safaricom is optimistic that this partnership will enhance its accountability on ESG reporting and attract further investments to drive long-term growth.
