Kenya’s capital-markets bell rang loud on Wednesday as Linzi FinCo 003 Trust debuted a Ksh 44.7 billion Infrastructure Asset-Backed Security (IABS) on the Nairobi Securities Exchange. The deal, the largest of its kind in East Africa, channels private money into the long-delayed 60,000-seater Talanta Sports City Stadium in Nairobi.
President William Ruto hailed the listing as proof that “some of the tough, unpopular choices we’ve made are working,” arguing that market-based financing beats piling more debt on the exchequer.
Structured as a 15-year note, the bond offers an internal rate of return of 15.04 percent and is backed by future cash flows from the Sports, Arts & Social Development Fund (SASDF). Investors will receive semi-annual repayments until the bond matures in July 2040.
Tom Mulwa, CEO of Liaison Group and architect of the transaction, was blunt: “This hasn’t been done in East Africa. The last time we saw something similar was South Africa’s Gautrain project, so we’re proud to pull it off.”
NSE chair Kiprono Kittony added that the bourse has logged three listings this month alone, calling it “the highest bond-trading streak in recent history.”
Treasury Cabinet Secretary John Mbadi framed the security as the flagship of a broader push for securitisation, privatisation, and PPPs: “We’re turning to innovative mechanisms to fund large-scale projects,” he told guests after the bell-ringing.
Yet not everyone is cheering. Former Budget Committee chair Ndindi Nyoro warned that the bond could saddle taxpayers with as much as Ksh 100 billion once interest and fees are tallied: “If this doesn’t make Kenyans angry, I don’t know what will,” he fumed.
Below is a snapshot of how the deal is structured:
| Feature | Details |
|---|---|
| Issuer | Linzi FinCo 003 Trust |
| Instrument | Infrastructure Asset-Backed Security (IABS) |
| Size | Ksh 44.79 billion |
| Tenor | 15 years (matures July 2040) |
| Return | 15.04 % IRR, semi-annual amortisation |
| Collateral | Future SASDF revenues, escrow account, standby letter of credit |
| Credit Rating | AA(KE)(IR) by GCR Ratings |
| Use of Proceeds | Build Talanta Sports City Stadium (60,000 seats) in time for AFCON 2027 |
Construction manager China Road & Bridge Corporation says the stadium will be ready by end-2025, giving Kenya its first new world-class arena since Kasarani opened in 1987. If timelines stick, Nairobi could host the Africa Cup of Nations opening ceremony on new grounds.
Market analysts see the bond as a litmus test. Should it trade smoothly, similar securitisations may follow for roads, housing, and water projects, potentially reshaping how Kenya pays for big-ticket infrastructure without relying solely on external borrowing.
