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Key Points
- Safaricom secures a $116 million Sustainability Linked Loan, raising its total loan facility to $232.2 million, and advancing its ESG agenda.
- The loan supports Safaricom’s transition to a tech-driven company and Net Zero carbon target by 2050.
- CEO Peter Ndegwa leads Safaricom’s expansion in Africa, enhancing digital payment solutions and financial inclusion through partnerships.
Safaricom, East Africa’s largest telecom operator, led by Kenyan tycoon Peter Ndegwa, has secured its second sustainability-linked loan, amounting to Ksh15 billion ($116.1 million). This follows a similar loan obtained last year, bringing the total to Ksh30 billion ($232.2 million).
The funding, considered the largest of its kind in East Africa, signals Safaricom’s deepening commitment to environmental, social, and governance (ESG) goals as it transitions into a tech-focused company.
The loan was provided by a consortium of four major banks — KCB, ABSA, Standard Chartered, and Stanbic — with Standard Chartered taking the lead role as the mandate lead arranger, global coordinator, and sustainability coordinator.
KCB served as a mandated lead arranger, while Stanbic and ABSA acted as arrangers. The facility is structured to support Safaricom’s sustainability objectives, with a clear focus on reducing carbon emissions and improving gender diversity across the company.
Safaricom sets ambitious sustainability targets
This financing will support Safaricom’s transformation into a fully-fledged technology company, accelerating initiatives aimed at reducing its carbon footprint and improving gender diversity within its workforce. Safaricom has set an ambitious target to achieve Net Zero carbon emissions by 2050, with concrete programs underway to meet this goal.
Peter Ndegwa, CEO of Safaricom, stated, “This deal allows us to advance our sustainability agenda further, following the success of our first sustainability-linked loan. By aligning our sustainability ambitions with financial strategy, we are unlocking opportunities for greater accountability in ESG reporting, attracting more investment to fuel our growth."
Dilip Pal, Safaricom’s Chief Financial Officer, highlighted the company’s deep commitment to sustainable growth: “Safaricom remains dedicated to ensuring that our projects are aligned with ESG principles. This second loan underscores our ongoing efforts to integrate sustainability across our business and financing strategies."
Peter Ndegwa leads Safaricom’s expansion in Africa
Safaricom, founded in 1993 and headquartered in Nairobi, is a leading provider of telecom services in Kenya, offering a wide range of products including mobile, fixed-line, M-PESA payments, voice services, and cloud hosting.
Under Ndegwa’s leadership, the company has not only solidified its dominance in the Kenyan telecom market but also expanded strategically across Africa. Recently, Safaricom partnered with Mastercard to bolster digital payment solutions and cross-border remittances in Kenya, demonstrating its commitment to financial inclusion.
