•The governor also hinted at the potential listing of County agencies such as Nairobi Water and Sewerage Company.
•Sakaja observed that his present focus was to lay the groundwork for the fundraising by addressing the financial status of the county, its pending bills and credit rating.
The Capital Markets Authority (CMA) will partner with Nairobi County Government in raising funds through green bonds for development projects.
Nairobi Governor Johnson Sakaja in his campaign pledges had announced plans to raise over Sh150 billion for infrastructure development through green bonds.
Green bonds are types of fixed-income instruments that are specifically earmarked to raise money for climate and environmental projects.
These bonds are typically asset-linked and backed by the issuing entity’s balance sheet, so they usually carry the same credit rating as their issuers’ other debt obligations.
The governor explained that he would source for long-term financing to meet the development needs of the County through the issuance and listing of a green bond.
The governor also hinted at the potential listing of County agencies such as Nairobi Water and Sewerage Company.
“We need about Kshs17 billion to address the sewerage situation and expand the water pipes to meet Nairobi’s growing population," said Sakaja.
adding that the County cannot raise these funds from conventional sources such as banks or even from its own revenue thus, the capital markets offer an affordable and long-term solution.
County financing through the capital markets has been one of the Authority’s key priorities as outlined in the 10-year Capital Market Master Plan which envisions that 30 percent of financing for counties will be drawn from the capital markets.
CMA Chief Executive Officer Wyckliffe Shamiah said that the Authority will support Nairobi County to raise funds through the capital markets.
“However, it will be important for the County to demonstrate good governance through the prudent application of funds raised, to give confidence to investors for future county capital raising exercises,” said Shamiah.
The Governor observed that his present focus was to lay the groundwork for the fundraising by addressing the financial status of the county, its pending bills and credit rating, to attract investment capital.
The two parties agreed to form a committee that will action the opportunities in the capital markets swiftly.
CMA will lead engagement with all stakeholders, including where possible, a push for changes to policies and laws to enable counties to borrow above the current limit of 20 percent of their audited annual revenues, for development projects.