NSE lists historic Ksh.44.7B infrastructure security to build Talanta stadium

Kenya’s capital markets have recorded a milestone with the listing of a Ksh.44.9 billion infrastructure-backed security on the Nairobi Securities Exchange (NSE).

The transaction, led by Linzi Finco, is being hailed as a major leap in mobilising private capital for public infrastructure projects.

The funds will go towards the construction of the Talanta Sports City, which is set to be completed in time for the Africa Cup of Nations Championships 2027, to be co-hosted by Kenya, Uganda, and Tanzania.

The listing of Linzi 003 Infrastructure Asset-Backed Security is one of the largest deals of its kind in Kenya’s history, which demonstrates a growing appetite for sophisticated financial instruments in the local markets.

"This is going to be trading for some time because it hasn't been done in East Africa. The last time this was done was the Gautrain project in South Africa. So as a country, we are very, very proud that we have been able to pull this together," said Liaison Group CEO Tom Mulwa.

The listing, marked by a ceremonial bell ringing at the NSE, signals growing investor confidence in structured finance as a tool for infrastructure development.

" I also want to announce that we had an equity listing last week, we have an equity listing again tomorrow, and the market has traded the highest value of bonds in recent history," said NSE Chairperson Kiprono Kittony.

President William Ruto, on his part said, "The strong recovery of the NSE, with market capitalisation now at Ksh.2.5 trillion, reflects the soundness and consistency of our 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."

The security pools future cash flows from infrastructure assets and repackages them into tradable instruments, allowing institutional and retail investors to participate in long-term infrastructure financing.

This approach also helps reduce reliance on traditional public funding at a time when the government is cash-strapped.

Treasury Cabinet Secretary John Mbadi said: "Your Excellency, the government which you lead is increasingly turning to innovative financing mechanisms to fund large-scale infrastructure and public projects. Some of the structures that we have earmarked for the deployment of private sector participation in public sector financing include asset-backed financing, otherwise known as securitisation of public assets; two is privatisation; and three is public-private partnerships, among others."

Market players see the listing as a sign of maturity in Kenya’s financial markets.

"Our goal is clear: to onboard nine million active retail investors by 2029 through strategic interventions that address market access, financial literacy, and generally improving the overall economy," Kittony noted.