Ndindi Nyoro criticises govt over Talanta Sports complex construction

Kiharu MP Ndindi Nyoro speaking during the launch of the institute's annual national shadow budget for 2025-26 financial year. [Wilberforce Okwiri,Standard] Kiharu Member of Parliament, Ndindi Nyoro, has faulted the government for acquiring a Sh44.8 billion debt through the Nairobi Securities Exchange. The Talanta Infrastructure Bond was issued on Wednesday, July 23, by Linzi FinCo to fund the construction of the Talanta Sports Stadium ahead of the 2027 AFCON Cup of Nations. President William Ruto said the government is banking on a securitisation fundraising model to support the 60,000-seater Talanta Sports Complex. According to the president, the bond is part of a broader innovation in public finance that aims to strengthen Kenya's ability to fund major infrastructure projects using local capital, hence cutting reliance on foreign loans. But Nyoro, former budget chair, has slammed the move as reckless. He argues that the government is already burdened with heavy debt, especially external, and is now turning to creative borrowing methods that can easily go unnoticed. According to him, mortgaging income streams for short-term gains while ignoring long-term implications is economically senseless. "The Kenyan government has borrowed Sh44.8 billion. That money is money to be spent today, but paid through taxes for the next 15 years. The interest rate is 15.04 percent. At that rate, it means the government from the Sports Fund will be paying around 3.4 billion after every six months," he said. "The maturity of the bond is 15 years, meaning Kenya will have paid an interest rate of 100 billion for a Sh44.8 billion loan. Any experienced economist does not support this kind of recklessness." The lawmaker also questioned the urgency behind the move, arguing that the country will still need the Sports Fund next year, ten years from now, and even in 15 years. Nyoro further dismissed the bond issuance as nothing more than excitement by some in government, warning it puts the country's future at risk. "I can tell you without blinking an eye that top Treasury officials who have experience are not in support of this move," he said. But Ruto, while presiding over the issuance, stood firm, stating: "It affirms our confidence in market-based financing and demonstrates how we can sustainably fund large-scale infrastructure through our capital markets." He added that such initiatives are gradually reducing borrowing costs and strengthening Kenya's economic resilience. The Linzi FinCo 003 Trust issued the Sh44.8 billion bond in secured notes under the IABS programme. The bond is backed by future revenues from the Sports, Arts, and Social Development Fund (SASDF), assigned receivables, an escrow account, and a standby letter of credit. It carries a fixed interest rate and is listed on NSE's Restricted Fixed Income Market. The offer is open to qualified investors under the Capital Markets Act and enjoys tax exemptions on interest income, with government safeguards in place to cover any SASDF shortfalls. According to Ruto, proceeds from the bond will directly fund the construction of the Talanta Sports City Stadium.

Ndindi Nyoro criticises govt over Talanta Sports complex construction

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