Kiharu MP Ndindi Nyoro has raised concerns over the Ksh44.8 billion infrastructure bond issued by Linzi Finco to fund the construction of the Talanta Sports Stadium.
Speaking on July 23, MP Nyoro disclosed that Kenyans will pay back over Ksh100 billion in interest alone for the bond by the time it matures.
According to Nyoro, the loan attracts an interest rate of 15.04 percent semiannually, translating to approximately Ksh3.4 billion, which will be paid from the Sports Fund every six months.
Ndindi Nyoro launches an attack on the government over the Ksh44.8 billion infrastructure bond. Photo: Courtesy.
“Since the government debt is already overstretched, the government is coming up with this kind of facilities so that it does not seem like our debt is growing, whereas we are having another secret book of debt. One secret book was the fuel levy; the second is this Talanta bond under the auspices of the Sports Fund. The interest rate is 15.04 per cent. It may seem like just figures, but they affect every Kenyan because it means the government will be paying around Ksh3.4 billion from the Sports Fund every six months. At the maturity of the bond in the next 15 years, Kenyans will have paid over Ksh100 billion for a loan of Ksh44.8 billion,” said Nyoro.
The lawmaker went on to question why the government was in a rush to secure a loan that, upon maturity, would cost more than double the principal amount in interest alone.
On Wednesday, President Ruto presided over the listing of the Linzi 003 Infrastructure bond at the Nairobi Security Exchange (NSE).
The president hailed the listing as a milestone in Kenya’s efforts to leverage capital markets for national development.
Once completed, the stadium is slated to be used for the 2027 Africa Cup of Nations Championships, which Kenya, Uganda, and Tanzania will co-host.
