Safaricom, East Africa’s largest telecom operator and led by Kenyan businessman Peter Ndegwa, has acquired its second sustainability-linked loan worth Ksh15 billion ($116.1 million). This loan follows a similar one acquired last year, totaling Ksh30 billion ($232.2 million).
The funding, which is considered the largest of its kind in East Africa, demonstrates Safaricom’s growing commitment to environmental, social, and governance (ESG) goals as it transitions into a tech-focused corporation.
The loan was given by a consortium of four large banks—KCB, ABSA, Standard Chartered, and Stanbic—with Standard Chartered serving as the mandate lead arranger, global coordinator, and sustainability coordinator.
KCB was the designated lead arranger, with Stanbic and ABSA acting as arrangers. The facility is designed to serve Safaricom’s sustainability goals, with a strong emphasis on lowering carbon emissions and increasing gender diversity within the organization.
This funding will help Safaricom transition into a fully-fledged technology corporation, speeding steps to reduce its carbon footprint and increase gender diversity in its workforce. Safaricom has established an ambitious goal of achieving Net Zero carbon emissions by 2050, with real measures in place to achieve it.
Safaricom CEO Peter Ndegwa commented, “This deal allows us to advance our sustainability agenda further, building on the success of our first sustainability-linked loan.” By linking our sustainability goals with our financial strategy, we create chances for more transparency in ESG reporting and attract more investment to fuel our growth.”
Safaricom’s Chief Financial Officer, Dilip Pal, emphasized the company’s profound commitment to sustainable growth: “Safaricom remains committed to ensuring that our projects are in line with ESG standards. This second loan demonstrates our continuous commitment to integrating sustainability into our business and financial strategy.
Safaricom, founded in 1993 and based in Nairobi, is Kenya’s major provider of telecom services, offering a diverse portfolio of goods such as mobile, fixed-line, M-PESA payments, voice services, and cloud hosting.
Under Ndegwa’s leadership, the company not only strengthened its position in the Kenyan telecom sector, but also strategically expanded beyond Africa. Safaricom recently teamed with Mastercard to improve digital payment solutions and cross-border remittances in Kenya, highlighting their commitment to financial inclusion.