Safaricom Announces Terms of Its Tax-Free Bond; How to Buy

Safaricom has announced a 5-year bond as part of its Domestic Medium Term Note (MTN) Programme, as it aims to raise up to Ksh15 billion.

The bond carries a fixed interest rate of 10.40%. Given that it is a green bond, returns for investors will not be taxed.

The proceeds will be used exclusively to finance or refinance eligible green projects under Safaricom’s Sustainable Finance Framework.

Read more: EABL Unveils 5-Year Bond; How to Invest With as Low as Ksh10K

Key Details

Tenor: 5 years

Fixed Rate of Interest: 10.40% per annum

Minimum Investment Amount: Ksh50,000 (with integral multiples of Ksh10,000- meaning that the least amount you can invest is Ksh50,000. After that, you can only add money in multiples of Ksh10,000.

Status of the Notes: Senior, unsecured

Listing: The Notes will be listed on the Nairobi Securities Exchange (NSE)

Selling Restrictions: Restricted offer, only available in Kenya

Key Dates

Offer opening: November 25, 2025.

Offer Closing: December 5, 2025 at 5pm.

Allotment Date: December 8, 2025.

Notification Date (via email/telephone): December 9, 2025.

Issue and Payment Date (for qualified institutional investors): December 11, 2025.

CDSC Account Upload: December 15, 2025.

Listing Date: December 16, 2025.

Read more: CBK Introduces M-Pesa Option When Buying Bonds

How to Place a Bid

Any investor seeking to buy the bond need to have a Central Depository System (CDS) account. Investors can participate via USSD or through Safaricom’s online portal or submit physical forms through authorized agents.

‍Option 1: USSD (applicable for investors who have a CDS account already).

1. Dial *483*810#
2. Choose Read Terms and Conditions of the Offer
3. Agree to terms then choose the "New Application" option 
4. Follow the prompts to complete the process.
5. You will then receive a prompt to pay and later an email and/or SMS confirming the status of your application.

Option 2: Online Application Process ( for 

1. Visit the safaricom bond website: https://safaricombond.e-offer.app/ 
2. click on ‘Apply for Notes’ and fill all the required details in the application form.
3. Once completed and submitted, you will be required to make payment and uploaded proof of payment documents (EFT or Bank Transfers).

“Please look out for updates on the status of your application, which will be sent to your registered email address or through text message to the mobile number you indicated in the electronic application,” Safaricom noted.

‍Option 3: Application Form 

Download a serialized form from the Safaricom website or obtain a copy from authorized accepting agents - Stanbic Bank, Standard Chartered Bank or Dyer and Blair Investment Bank.

Complete the form with the required supporting documents and submit it to any of the placing agents.

Payment via Mobile Money (M-Pesa):

You submit your bond via M-Pesa through Paybill Number: 8250250. The account Number: 1112525 XXXXXX (replace XXXXXX with the 6-digit number on your application form)

Interest Payments and Returns

Interest will be paid semi-annually. As the bond is listed on the NSE, investors can instruct their stockbroker or investment bank to sell the notes

Safaricom is among the latest companies to issue a corporate bond after getting approval from the Capital Markets Authority (CMA).

The Telco is seeking to raise Ksh40 billion through the bond, making its the largest corporate bond so far in the country.

Recently, East African Breweries PLC (EABL) offered a 5-year bond as it seeks Ksh20 billion to fund the business and pay off existing refinancing of existing debt.

The EABL offered an interest of 11.8% with returns facings a 15% Withholding Tax. However, for the manufacturing company the minimum investment needed was Ksh10,000.

Comparison of investments: If you invest Ksh100,000 in the Safaricom Bond, you will receive Ksh52,000 in returns while if you invest the same amount in the taxed EABL bond, you will receive approximately, Ksh50,150.