Kenya’s largest mobile service provider Safaricom Plc has signed a Ksh 15 billion loan with four banks to fund its sustainable investments.
The Sustainability Linked Loan (SLL) with the banking consortium bringing together Standard Chartered, KCB Group, ABSA and Standard Bank is expected to help the teleco meet its Net Zero targets by reducing its emissions, track gender diversity, and monitor social equality impacts.
“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 Environmental, Social, Governance footprint,” said Peter Ndegwa, Safaricom Chief Executive Officer.
The shilling denominated facility which could be extended to Ksh 20 billion will also supports the firm’s ambition to transition to a fully-fledged technology company by 2025.
“This significant milestone indicates the continued momentum towards building a more robust sustainable, and diversified financial ecosystem in the region,” said Kariuki Ngari, Chief Executive Officer, Standard Chartered Bank Kenya.
The investment is also expected to contribute to the growth of Kenya’s sustainable financing market, which remains a key priority for the Government of Kenya as part of its Vision 2030 plans.