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Talanta Stadium Project Linked to KSh145 Billion in Hidden Government Debt, Report Shows

A newly released report has revealed significant concerns about off-balance-sheet financing tied to Nairobi’s Talanta Stadium project, with Kenya’s total liability potentially reaching KSh145 billion—more than triple the initial bond value.

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The disclosure came during an Institute of Certified Public Accountants of Kenya (ICPAK) seminar held in Mombasa, where Kiharu Member of Parliament Ndindi Nyoro outlined the complex financial structure underpinning the major sports infrastructure development.

Financial Structure Raises Red Flags

According to MP Nyoro, the stadium project was financed through a KSh44.79 billion Infrastructure Asset-Backed Security (IABS) bond issued by Linzi FinCo 003 Trust. However, when interest payments are factored in over the bond’s lifetime, the government’s total financial obligation balloons to approximately KSh145 billion.

The debt is being serviced through monthly payments of KSh500 million channeled via the Sports, Arts and Social Development Fund (SASDF)—critically, outside Kenya’s official debt register. This off-ledger arrangement has sparked concerns about transparency in public financial management.

Project Status and Timeline

The 60,000-capacity stadium, located along Ngong Road in Nairobi, is currently 66% complete. China Road and Bridge Corporation is handling construction, with full operational status targeted for February 2026.

Upon completion, the facility is expected to serve as a premier venue for national and international sporting events, though questions about its financing structure have overshadowed discussions of its developmental benefits.

Transparency and Oversight Concerns

MP Nyoro’s criticism centered on the “off-the-books” nature of the financing arrangement, which he argued obscures Kenya’s true debt position. With the country’s debt-to-GDP ratio already hovering above 70%, such hidden liabilities could paint an incomplete picture of fiscal health.

The arrangement has also raised questions about parliamentary oversight, as off-balance-sheet financing mechanisms can bypass standard legislative scrutiny processes designed to ensure accountability in public spending.

Public Reaction

The revelation has triggered widespread debate on social media platform X, with Kenyans questioning the government’s debt management strategy and calling for greater transparency in public infrastructure financing.

Critics argue that while infrastructure development is crucial for economic growth, the financial mechanisms used must be transparent and subject to proper legislative oversight to protect taxpayer interests and maintain fiscal sustainability.

The government has yet to issue an official response to the concerns raised about the Talanta Stadium financing structure.