On July 23, a
historic milestone was made at the Nairobi Securities Exchange when Linzi
FinCo 003 Trust successfully listed Sh44.7 billion of secured medium-term notes
under the Linzi 003 Infrastructure Asset-Backed Security in Nairobi.
This financial instrument will be used to finance the construction of the Talanta Sports City, a 60,000-seater stadium of international standards, which has been spearheaded through a public-private partnership led by the China Road and Bridge Corporation. Going beyond the sports infrastructure project, the initiative signals Kenya's emergence as a more sophisticated nation in its ability to align capital markets with long-term development interests.
The IABS issuance is backed by future cash flows from the Sports, Arts and Social Development Fund, held in escrow and supported by a standby letter of credit. The notes are rated AA(KE)(IR) with a stable outlook by GCR Moody's and mature in 2040, offering an internal rate of return of 15.04 per cent. The offering was oversubscribed by 100.19 per cent, reflecting strong investor confidence.
Speaking during the bell-ringing ceremony at the NSE, President William Ruto lauded the Linzi 003 listing as a landmark in Kenya’s domestic resource mobilisation strategy. The listing complements prior securitisation efforts and fits squarely within a broader national push to harness domestic capital for development. It also dovetails with recent policy shifts such as the Government-to-Government (G-to-G) fuel import programme, all aimed at reducing reliance on external debt.
The Linzi 003 listing marks a pioneering step in Kenya's capital markets, establishing a framework for infrastructure securitisation. It represents a shift from foreign debt dependency to domestic capital mobilisation, providing a sustainable financing model for large-scale infrastructure projects. Additionally, it signals increased investor confidence in government-backed securities and the securitisation of development fund receivables.
The Talanta Sports City Stadium, funded by this issuance, is a flagship facility set to play a central role in Kenya's hosting of the 2027 Africa Cup of Nations. It is also intended to foster talent development and position Nairobi as a regional hub for sports and events.
With the construction commencing on March 1, 2024, the stadium has achieved 60 per cent completion. The concrete main structure has been completed, and the work is currently on the steel structure, curtain walls and other outdoor works. The most significant architectural achievement of this stadium, a roof steel structure, is currently planned to start installation in August 2025, but the entire project is expected to be finally wrapped up on February 28, 2026.
The stadium will have a capacity of 60,000 spectators and span a total construction area of 98,150 square metres once it is complete. The building will rise five storeys above the ground and will be topped by a roof 56 metres high, making it one of the most advanced in Africa.
Sustainability is also built into the stadium through solar photovoltaic panels, rainwater harvesting and energy-saving LED light fittings. It is a type of environmental milestone in building stadiums in Africa, targeting to decrease energy consumption, increase thermal comfort inside and initiate green transport by EV recharging ports.
In addition to the aesthetics and technology, the stadium is largely based on local empowerment. At its peak, more than 3,500 Kenyans, 500 of them being residents of Kibera, were hired to work on it as steel fixers, masons or carpenters.
The stadium poses some challenges, considering it is the most technically complex project under construction by CRBC in Kenya. These include multidisciplinary teamworking and a first-in-Africa grid roof props on cables. But with its previous record of delivering key infrastructure such as the Nairobi Expressway and Standard Gauge Railway, one is assured of CRBC completing the projects within the stipulated time.
Looking ahead, the TSC is not merely a stadium. It is a talent-building platform, a national heritage and a training ground for skilled labour. With Kenya set to host the 2027 AFCON, this historic stadium will not only open its doors to the best athletes but also send a message to the whole world that Kenya is a confident, capable and forward-looking nation.
The Talanta Sports City is poised not merely to set the stage for football, but to play a part in the future of Kenya through a fusion of cultural pride, technological know how and community influence.
Commentator on the construction sector issues
