Safaricom explores NSE-style carbon trading market with M-Pesa payouts

Safaricom explores NSE-style carbon trading market with M-Pesa payouts - Karen Basiye, Director' Sustainability and Shared Value at Safaricom engages with Akiyemi Awodumila, partner at PWC Kenya during a media immersion on sustainability. (Photo/ Courtesy)

The company has, however, ruled out direct participation in carbon trading in the immediate future, instead weighing creation of an exchange modelled on the Nairobi Securities Exchange (NSE).

Safaricom is considering developing a digital marketplace that would allow communities and businesses to trade carbon credits and receive payments through M-Pesa, as the telecommunications firm explores technology-based opportunities in the emerging carbon market.

The company has, however, ruled out direct participation in carbon trading in the immediate future, instead weighing creation of an exchange modelled on the Nairobi Securities Exchange (NSE), subject to government regulations and the required approvals.

Karen Basiye, Safaricom’s head of sustainability, said the company is working with partners on the proposed platform, which would use technology to connect carbon credit sellers and buyers.

“We can create an exchange where people can trade on the platform and get paid via M-Pesa. We are trying to use technology to ensure that people can trade,” she said during a media roundtable on Wednesday.

The proposal comes as Kenya develops its regulatory framework for carbon markets, including rules governing credits generated through tree-growing and other environmental initiatives.

Safaricom is also drawing a distinction between trees planted through its community and corporate social responsibility projects and those intended to offset emissions from its own operations.

Latest Stories

  • Four years on, Committee to Protect Journalists urges Kenya to prosecute police officers implicated in Arshad Sharif killing
  • Darajani Gogo FC takes relegation battle to High Court, accusing FKF of inconsistent rule application
  • Kitui MCA arrested over alleged mobile phone thefts in Nairobi CBD
  • Pope Leo XIV to miss annual interdenominational peace meeting to aid recovery after lung cancer surgery

Basiye said trees planted through community initiatives, including the restoration of water towers, would not be used to generate carbon offsets for the company.

Any trading opportunities arising from such projects should instead benefit the communities involved.

For its own emissions, Safaricom said it would only claim carbon credits corresponding to the emissions it produces, while seeking to ensure surrounding communities benefit from other gains associated with forest conservation.

“As a business, we are not planning to trade anytime soon. People ask me whether Safaricom intends to buy carbon credits to offset its emissions. No. If we move to the group level, perhaps,” Basiye said.

She also cautioned that carbon credits require robust verification, particularly those generated through nature-based projects, which can be exposed to changing weather conditions and other environmental risks.

The company’s cautious approach reflects concerns that weak verification could undermine the credibility of carbon offsets and the benefits expected from trading them.

Beyond environmental markets, Safaricom is positioning sustainability as part of its wider business strategy, with technology expected to support enterprises, strengthen customer trust and inform financial decisions.

The firm has also set a target of achieving 50 per cent women’s inclusion by 2030, while maintaining governance as a central pillar of its sustainability agenda.

The telco’s forthcoming sustainability report is expected to outline how the company plans to connect its environmental and social commitments with long-term business performance.