Safaricom Secures Over KSh 15b Loan From Local Banks To Fund Sustainability Agenda

• Safaricom PLC announced a partnership with local banks to finance its Environment, Social and Governance (ESG) agenda
• The firm inked a deal worth over KSh 15 billion with Standard Chartered Bank, Stanbic Bank, ABSA Bank, and KCB Bank to help in reducing carbon emissions and other initiatives
• Safaricom Chief Executive Officer (CEO) Peter Ndegwa noted that the fund will unlock the telecommunication firm's diversified investment opportunities

Safaricom has secured over KSh 15 billion in loans from local banks to support its Environment, Social and Governance (ESG) agenda.

The leading telecommunication firm said the Sustainability Linked Loan (SLL) will be significant in its initiatives aimed at reaching net zero emissions, tracking gender diversity, and monitoring social equality impacts. 

Safaricom tech investments

Safaricom Chief Executive Officer (CEO) Peter Ndegwa confirmed that the credit facility - the first of its kind - will be significant in the company's diversified investment opportunities.

“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 Ndegwa in a press statement released on Monday, September 4.

Ndegwa said the funding was in line with the company's strategy of becoming a fully-fledged technology company by 2025.

The deal opened the lead for further sustainability financing in the region as companies seek to become more accountable for their ESG reporting and financing.  

Safaricom signed the deal with Standard Chartered Bank, Stanbic Bank, ABSA Bank and KCB Bank, which will offer the SLL to the telco.

Kenyan companies supporting climate initiatives

The fund is expected to go up to KSh 20 billion and is the first Kenya Shilling denominated SLL in the region.

“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,” said Kariuki Ngari, Chief Executive Officer, Standard Chartered Bank Kenya.

Ruto gives summary of African solutions to climate

This move came as Kenya hosted the first-ever Africa Climate Summit and Africa Climate Week 2023.

President William Ruto officially launched the Africa Climate Summit on Monday, September 4.

Ruto gave a grim summary of Africa's status on renewable energy, problems and solutions.

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Peter Ndegwa said the fund will unlock the company's investment opportunities.

Safaricom Secures Over KSh 15b Loan from Local Banks to Fund Sustainability Agenda - Tuko.co.ke

Safaricom secures Ksh 15B loan for sustainable programmes - KBC