President William Ruto sees increased activity in the
country’s capital markets, especially the rebound of the Nairobi Securities
Exchange (NSE), as a critical gauge of sound economic health.
Speaking at the bell ringing ceremony for the listing of the Linzi 003 Infrastructure Asset-Backed Security, the first of its kind in the region at NSE on Wednesday, Ruto said that NSE’s market capitalisation of Sh2.5 trillion reflects the soundness and consistency of his economic policies.
“Some of the choices we have made have not been easy and, at times, not popular. But they have been necessary, strategic, and forward-looking. These decisions have helped us stabilise the economy, restore investor confidence, and lay a firm foundation for sustained growth,’’ Ruto said.
He added that both local and international investors are looking at Kenya with fresh optimism and renewed trust.
The NSE lost Sh610 billion in investor wealth to hit below Sh2 trillion mark since 2020 in the quarter ended December 2022, months after Ruto came to power as investors sought safer investments following a bearish run at the Nairobi bourse.
According to the CMA Q4 Statistical bulletin, NSE market capitalisation stood at Sh1.96 trillion as at December 2022, a 23.40 per cent
decrease from Sh2.59 trillion in December 2021.
During the session, the head of state revealed that he hopes the cabinet to approve the Initial Public Offer (IPO) of Kenya Pipeline Company before the end of the month, after which it will be submitted to the National Assembly for consideration.
Early this month, while on an official trip to the United Kingdom, Ruto announced that KPC’s listing is among his government’s plans to widen the local stock market while opening several state corporations to foreign investment.
His focus to ensure increased activities in the country’s capital markets stems from his 2022 promise to ensure eight to 10 companies are listed at NSE, ending more than a decade-long listing dry spell.
He said that his government is keen on listing more companies on the NSE, effectively stimulating liquidity and allowing shareholders to realise the value of their investments.
"In the next 12 months, we will have between six and ten companies listed in the Stock Exchange. I promise we will deliver on that commitment," Ruto said.
No firm has issued an IPO at the Nairobi bourse since then.
Yesterday, Ruto termed the raising of over Sh44 billion by Linzi 003 Infrastructure Asset-Backed as a landmark achievement.
“It affirms our confidence in market-based financing and demonstrates how we can sustainably fund large-scale infrastructure through our capital markets.”
Linzi 003 is a senior secured, dematerialised medium-term note with a 15-year tenor, maturing in July 2040. Investors earn an internal rate of return (IRR) of 15.04 per cent per annum, based on the issue price.
Repayments occur on an amortised basis with semi-annual redemptions every January 8 and July 8, beginning in January 2026.
Backed by future revenues from the Talanta Sports City project—an anchor facility for Kenya’s AFCON 2027 ambitions—the transaction represents one of the most sophisticated structured financings in East Africa as it blends domestic capital mobilisation with innovative financial engineering.
GCR Ratings has assigned the 15-year senior secured note an AA (KE)(IR) rating with a stable outlook.
The firm’s pivot from affordable housing to large-scale infrastructure reflects a strategic deepening of its impact in alignment with national development goals and the Sustainable Development Goals (SDGs).
Linzi FinCo is the financing arm of the Liaison Group, a pan-African financial services firm.
It is owned by Kenyan banker Tom Mulwa and specialises in capital markets structuring, Islamic finance, pensions, and investment services.
