- Kiharu MP warns Kenyans will repay over Ksh100 billion in interest alone.
- Labels Talanta bond a “secret book of debt” hidden from public scrutiny.
- Slams the 15.04% semiannual interest rate as reckless and unsustainable.
- Questions the rush to mortgage income streams via the Sports Fund.
- President Ruto hails bond listing as a historic financing breakthrough.
Kiharu MP Ndindi Nyoro has strongly criticised the government’s Ksh44.8 billion infrastructure bond used to finance the Talanta Sports City Stadium, claiming Kenyans will bear the burden of repaying over Ksh100 billion in interest alone by the time the bond matures.
Speaking on Wednesday, July 23, Nyoro accused the government of using creative accounting to mask rising debt levels.
“One secret book was the fuel levy; the second is this Talanta bond under the auspices of the Sports Fund,” he said.
Nyoro emphasised that the bond attracts a 15.04% semiannual interest rate, translating to Ksh3.4 billion every six months, all of which is paid through the Sports Fund. He warned that over 15 years, Kenyans will end up repaying more than twice the borrowed amount.
Nyoro, a former Chairperson of the Budget and Appropriations Committee, termed the move fiscally reckless, questioning why the government was so eager to commit to such an expensive loan.
“We are now mortgaging our income streams. Experienced officers in the National Treasury do not even support it,” he said.
In contrast, President William Ruto celebrated the bond’s listing at the Nairobi Securities Exchange (NSE) as a significant achievement. He said it signals Kenya’s commitment to tapping capital markets for development funding.
“It affirms our confidence in market-based financing… a landmark achievement,” Ruto stated.
The Ksh44.8 billion raised will go toward building the 60,000-seater Talanta Sports City Stadium, which will host matches during the 2027 Africa Cup of Nations (AFCON) co-hosted by Kenya, Uganda, and Tanzania.
