Safaricom has pulled off one of the most emphatic funding wins in Kenya’s capital markets this year, raising KES 20 billion ($154 million) from the first tranche of its medium-term note (MTN) programme after investors rushed in with bids nearly three times what the telecom giant had asked for.
Kenya’s largest telco initially opened the sale seeking KES 15 billion ($116 million). But the flood of demand amounting to KES 41.4 billion in applications,forced the company to activate its KES 5 billion ($38 million) greenshoe option, allowing it to absorb part of the excess interest and close the tranche at KES 20 billion.
“Safaricom has received applications for Notes amounting to approximately KES 41.4 billion… representing an overall subscription rate of 275.7%,” the company said in a statement on Wednesday.
A Vote of Confidence in a Tough Economy
The frenzied uptake is more than a corporate win for Safaricom, it’s a temperature check for the wider Kenyan economy. With global markets still shaky and inflationary pressure squeezing consumers, the strong appetite for this debt suggests that local investors still have faith in Kenya’s blue-chip companies and are willing to commit long-term capital in exchange for stable returns.
Analysts say the numbers reflect deep liquidity in the domestic market at a time when many African corporates struggle to raise capital cheaply.
Part of a Much Bigger Borrowing Plan
The Capital Markets Authority (CMA) approved Safaricom’s broader KES 40 billion ($308 million) MTN programme in November, giving the company room to tap the market in phases. The tranche that just closed referred to as “Tranche 1” opened shortly after the approval and officially closed on 5 December.
The Nairobi Securities Exchange (NSE) welcomed the outcome, calling it a remarkable demonstration of investor trust. “This milestone is a testament to the vibrant ecosystem and strong liquidity,” the bourse said in a Wednesday statement.
What Comes Next
This KES 20 billion raise is only the beginning. Safaricom now has the regulatory green light to return to the market for the remaining KES 20 billion in future tranches. Market insiders expect the company to explore green or social bonds as part of its next steps, especially as it expands infrastructure, financial services, and sustainability-focused projects.
For now, the notes from this first tranche will be listed on the NSE, giving investors a tradable asset tied to one of East Africa’s most valuable companies.