Safaricom has successfully secured a loan of up to KES20 billion (equivalent to US$137 million) from a consortium of prominent Kenyan banks. This funding will play a pivotal role in advancing the company's comprehensive sustainability plan.
Notably, Safaricom asserts that this transaction marks a significant milestone as the first-ever ESG-linked loan facility in East Africa. Initially, the company will receive KES15 billion, with the potential to scale up to KES20 billion, made available by Standard Chartered Bank, Stanbic Bank, ABSA Bank and KCB Bank.
These financial institutions have committed to granting Safaricom access to the funds based on the company's achievements in critical ESG areas, emphasizing their shared commitment to environmental, social and governance (ESG) principles.
Safaricom is taking significant steps towards a sustainable future by honing in on key ESG initiatives. This includes a dedicated effort to reduce emissions, striving to achieve Net Zero targets, closely monitoring gender diversity and assessing the impacts on social equality.
Furthermore, the company is intensifying its commitment to strategic sustainable investments, with the ambitious goal of transforming into a fully-fledged technology company by 2025. The successful deal not only fortifies Safaricom's sustainability efforts but also sets a precedent for increased ESG financing in East Africa, signaling a growing trend of companies seeking accountability for their ESG footprint.