Safaricom’s debut green bond has stunned the market after attracting applications worth Sh41.6 billion—an oversubscription of 175.7% against the initial Sh15 billion target, signalling strong investor confidence in Kenya’s sustainable finance sector at a time many insist the economy is struggling.
The Ksh 20 billion bond—designed to fund renewable-energy projects, strengthen digital infrastructure, and support climate-resilient initiatives—attracted bids worth more than Ksh 48 billion within days of opening.
The overwhelming appetite cuts against the common refrain that “hakuna pesa Kenya,” instead revealing deep liquidity among institutional investors, pension funds and regional financiers actively hunting for green, high-impact opportunities.
Market analysts say the response shows that sustainability-linked investments are no longer niche but are rapidly moving into the mainstream of East African capital markets.
Safaricom framed the bond as a long-term investment in both environmental resilience and digital inclusion. Proceeds will fund projects such as energy-efficient network upgrades, solar-powered masts in underserved regions, and expanded climate-smart community programmes. The company says the projects are aligned with global standards, allowing the bond to meet international green-certification requirements.
Investor enthusiasm was also fuelled by Safaricom’s strong credit profile and consistent profitability, which offered confidence in repayment even as global markets remain volatile. Fund managers interviewed after the close said they viewed the bond as a “low-risk, high-impact” instrument that aligns with global mandates to increase exposure to sustainable assets.
The National Treasury and Nairobi Securities Exchange have welcomed the oversubscription as evidence that Kenya’s capital markets are capable of attracting significant long-term financing when products are well-structured. Regulators added that strong uptake of green instruments positions the country to tap even larger pools of climate finance in the coming years.
For Safaricom, the massive demand is a strategic win: it reinforces its positioning as a corporate leader in environmental responsibility while unlocking capital without heavy reliance on bank borrowing. The company said it is encouraged by the market’s trust and will continue exploring innovative financing models to accelerate both digital and green transitions.
If the results are anything to go by, Kenya’s investment landscape may be in far better shape than many assume. Oversubscription of this scale sends a simple message: pesa iko—especially when the deal is right.
