Safaricom, Banks in Sh15B Deal to Fund Sustainable Programs

Safaricom has established a partnership with a group of Kenyan banks to further its environmental, social, and governance (ESG) objectives.

The Sh15 billion deal, which is scalable to Sh20 billion, establishes the largest ESG-linked loan facility in East Africa.

The funding firms are Standard Chartered, Standard Bank, ABSA, and KCB.

“In line with our focus to advance our sustainable business agenda, this funding will unlock our ability to create more diversified investments that will support transformative investments in new technologies, systems, and services that allow us to comprehensively manage our ESG footprint,” said Peter Ndegwa, Chief Executive Officer (CEO), Safaricom PLC.

The investment is also anticipated to help Kenya’s sustainable financing sector expand, which is still a top objective for the Kenyan government as part of its ambitions for Vision 2030.

“This deal is a significant milestone for Safaricom as it aligns our financial strategy with our Sustainability agenda, a reflection of our commitment to transforming lives by partnering for growth,” Ndegwa said. 

Standard Chartered Kenya served as the deal’s global coordinator, sustainability coordinator, and mandated lead arranger, with KCB serving as the deal’s mandated lead arranger. Arrangements were made by Standard Bank and ABSA Bank.

“This significant milestone indicates the continued momentum towards building a more robust sustainable, and diversified financial ecosystem in the region,” said Kariuki Ngari, CEO, Standard Chartered Bank Kenya on behalf of the consortium.

“Across the market, we are seeing accelerated interest in sustainable finance products alongside more considered strategies for climate initiatives. We are enthusiastic about this partnership with Safaricom as it positions Kenya as a regional leader in inclusive and responsible investment,” he said.