Safaricom, a leading Kenyan telecommunications operator, is committing KSh20 billion to transform its energy usage by transitioning from diesel generators to solar energy. The company's move aims to reduce its carbon footprint and reliance on diesel, which has become increasingly expensive. In the year ended March 2026, Safaricom consumed 10.08 million liters of diesel, worth approximately KSh2.3 billion. This significant expenditure highlights the financial burden of powering its extensive telecommunications network.
As part of its renewable energy strategy, Safaricom has made significant progress in solar installations, with 2,028 network sites converted to solar power by March 2026. This represents a 35.7% increase from the previous year, with 596 additional sites converted during the financial year. The company's goal is to have 3,000 solar-powered network sites by March 2027. By reducing its dependence on diesel generators, Safaricom aims to lower fuel consumption, limit exposure to diesel price fluctuations, and decrease emissions from its operations.
To support its transition to renewable energy, Safaricom has raised KSh20 billion through its inaugural green notes programme. The funds will be used for renewable energy projects, energy efficiency improvements, and power management initiatives. The green notes programme is part of a larger KSh40 billion medium-term note programme. The successful issuance of the green notes reflects growing investor interest in financing companies with measurable environmental commitments and transparent sustainability reporting.
Despite the progress made in transitioning to renewable energy, Safaricom's combined Scope 1 and Scope 2 emissions increased by 9.1% to 56,354 tonnes of carbon dioxide equivalent in FY2026. Scope 1 emissions, which cover direct emissions from sources owned or controlled by the company, increased by 12.2% to 33,854 tonnes. Diesel generators remain a significant contributor to Safaricom's emissions, accounting for almost 80% of its Scope 1 emissions. Refrigerant leaks from cooling systems have also emerged as a significant source of direct emissions.
The increase in emissions highlights the challenges faced by Safaricom in reducing its environmental footprint while expanding its telecommunications network. The company's network must support growing demand for mobile data, digital payments, and connectivity, requiring additional power for transmission equipment, cooling systems, and supporting infrastructure. Safaricom faces the challenge of expanding capacity without allowing energy consumption and emissions to increase at the same pace.
The financial implications of Safaricom's environmental footprint extend beyond its electricity and diesel bills. According to its 2026 Sustainable Business Report, the company's net environmental value erosion reached KSh6.43 billion in FY2026, compared with KSh2.1 billion in the previous financial year. This assessment attempts to quantify the economic consequences of environmental impacts that conventional financial statements may not fully capture.
Safaricom's sustainability report also gave the company a D- rating for its climate action performance under its Sustainable Development Goal assessment. The rating reflects the company's efforts to address its environmental impacts, but also highlights the need for further improvement. As Safaricom continues to invest in renewable energy and reduce its dependence on diesel generators, the company faces the challenge of balancing its growing network requirements with its environmental commitments.
Key points
- Safaricom aims to have 3,000 solar-powered network sites by March 2027.
- The company's combined Scope 1 and Scope 2 emissions increased by 9.1% to 56,354 tonnes of carbon dioxide equivalent in FY2026.
- Safaricom has raised KSh20 billion through its inaugural green notes programme to support its transition to renewable energy.
