Nyoro warns Sh44.8 billion Talanta loan could cost Kenyans over Sh100 billion
Kiharu MP Ndindi Nyoro has raised the alarm over the government’s decision to finance the construction of Talanta Sports City through a Sh44.8 billion bond, warning that the move could plunge the country deeper into unsustainable debt, with taxpayers expected to pay over Sh100 billion in interest over 15 years.
The bond, listed on the Nairobi Securities Exchange (NSE) as the Linzi Infrastructure Asset-Backed Security, is intended to fund the 60,000-seater Talanta Sports City in Nairobi ahead of the 2027 Africa Cup of Nations, which Kenya is set to co-host.
President William Ruto, who presided over the bell-ringing ceremony at the NSE on Wednesday, hailed the listing as a step towards reducing pressure on the national budget, strengthening domestic capital markets, and lessening reliance on foreign loans.
However, Nyoro has sharply criticised the borrowing model, arguing that the loan will be repaid over 15 years using taxes collected through the Sports Fund, which derives most of its revenue from betting and gambling levies.
He condemned the financial structure behind the bond, saying it masks the true extent of public debt and allows the government to appear as though it is not increasing borrowing.
“Now the government is coming up with these kinds of facilities so that it does not seem like our debt is growing, whereas we are essentially creating another sacred book of debt,” he said, comparing it to previous borrowing backed by fuel levies.
Nyoro estimates that Kenyans will pay over Sh100 billion in interest by the time the bond matures in 2040, more than double the amount initially borrowed.
“At an interest rate of 15.04 per cent, the government will be paying around Sh3.4 billion every six months from the Sports Fund,” Nyoro said. “By the time the bond matures in 2040, Kenyans will have paid over Sh100 billion in interest on a Sh44.8 billion loan.”
Nyoro warned that the move effectively mortgages every stream of government revenue, arguing that such a model overlooks the country's future needs.
“Kenya will still need a Sports Fund for the next 15 years,” he said. “Why the rush to burden the country with a Sh44 billion loan that will cost more than twice that amount in interest by the time it matures?”
The MP further noted that infrastructure such as stadiums and roads had previously been built without undermining fiscal sustainability.
“We are not inventing stadiums today. Kenya has always constructed tarmacked roads and state-of-the-art stadiums like Nyayo and Kasarani without burdening taxpayers in this manner,” he said.
Nyoro described the move as “a very reckless manner of running the fiscals of our country” and claimed that experienced economists and Treasury officials do not support such financial structuring.
He urged leaders to act in the country’s long-term interest, rather than chasing short-term political gains.
The bond, listed on the Nairobi Securities Exchange (NSE) as the Linzi Infrastructure Asset-Backed Security, is intended to fund the 60,000-seater Talanta Sports City in Nairobi ahead of the 2027 Africa Cup of Nations, which Kenya is set to co-host.
President William Ruto, who presided over the bell-ringing ceremony at the NSE on Wednesday, hailed the listing as a step towards reducing pressure on the national budget, strengthening domestic capital markets, and lessening reliance on foreign loans.
However, Nyoro has sharply criticised the borrowing model, arguing that the loan will be repaid over 15 years using taxes collected through the Sports Fund, which derives most of its revenue from betting and gambling levies.
He condemned the financial structure behind the bond, saying it masks the true extent of public debt and allows the government to appear as though it is not increasing borrowing.
“Now the government is coming up with these kinds of facilities so that it does not seem like our debt is growing, whereas we are essentially creating another sacred book of debt,” he said, comparing it to previous borrowing backed by fuel levies.
Nyoro estimates that Kenyans will pay over Sh100 billion in interest by the time the bond matures in 2040, more than double the amount initially borrowed.
“At an interest rate of 15.04 per cent, the government will be paying around Sh3.4 billion every six months from the Sports Fund,” Nyoro said. “By the time the bond matures in 2040, Kenyans will have paid over Sh100 billion in interest on a Sh44.8 billion loan.”
Nyoro warned that the move effectively mortgages every stream of government revenue, arguing that such a model overlooks the country's future needs.
“Kenya will still need a Sports Fund for the next 15 years,” he said. “Why the rush to burden the country with a Sh44 billion loan that will cost more than twice that amount in interest by the time it matures?”
The MP further noted that infrastructure such as stadiums and roads had previously been built without undermining fiscal sustainability.
“We are not inventing stadiums today. Kenya has always constructed tarmacked roads and state-of-the-art stadiums like Nyayo and Kasarani without burdening taxpayers in this manner,” he said.
Nyoro described the move as “a very reckless manner of running the fiscals of our country” and claimed that experienced economists and Treasury officials do not support such financial structuring.
He urged leaders to act in the country’s long-term interest, rather than chasing short-term political gains.
President William Ruto
Debt
public debt
Linzi 003 Infrastructure Asset-Backed Security
Kiharu MP Ndindi Nyoro
Talanta Sports City
Sports Fund
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