President William Ruto has launched a Sh44.7 billion infrastructure bond at the Nairobi Securities Exchange (NSE), paving the way for the construction of Kenya’s largest stadium project since 1987.
The financing, issued through LINZI FinCo Trust and listed under the Infrastructure Asset-Backed Securities (IABS) programme, will fund the Talanta Sports City, a 60,000-seat stadium in Nairobi intended to host future Africa Cup of Nations (AfCON) tournaments and other global sporting events.
Speaking during the bell-ringing ceremony, Ruto said the listing represents a new chapter in how Kenya approaches infrastructure development through financial markets.
“It affirms our confidence in market-based financing and demonstrates how we can sustainably fund large-scale infrastructure through our capital markets,” Ruto stated.
The bond, formally issued by Linzi FinCo 003 Trust, is secured by future cashflows from the Sports, Arts and Social Development Fund (SASDF) and reinforced with an escrow account and a standby letter of credit.
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The secured notes carry a fixed interest rate and qualify for income tax exemptions. Only qualified investors, as defined under the Capital Markets Act, are eligible to participate.
The President described the transaction as part of a growing portfolio of off-budget strategies his administration is using to relieve pressure on public borrowing.
“This feat joins our pioneering innovations such as the Government-to-Government (G-to-G) fuel supply programme and our asset-backed infrastructure securitisation that has raised Sh175 billion off-balance sheet,” he said.
Talanta Sports City will be the first purpose-built stadium of its size since Moi International Sports Centre, Kasarani, which was completed more than four decades ago.
The project is intended not just to meet international standards but to transform local sporting infrastructure altogether.
Ruto also spoke on the broader significance of the bond, describing it as a marker of the country’s financial maturity.
“It not only signals deeper capital markets but also showcases the innovation and sophistication driving the country’s financial solutions,” he said.
The structuring of the IABS was led by a consortium that included Liaison Financial Services, KCB Investment Bank, CPF Capital, Ernst & Young, and KN Law LLP — all of whom ensured the offering complied with existing regulations while protecting investor interests.
The President further noted that the successful listing reflects new energy within the country’s capital markets, especially at the Nairobi Securities Exchange.
“This momentum reflects renewed energy, strong leadership, and strategic clarity,” he said.
With the bond now officially trading on the NSE’s Restricted Fixed Income Market, Kenya moves one step closer to financing its infrastructure ambitions through homegrown capital — while reducing exposure to costly foreign debt.
