Talanta Sports City bond sparks outrage as MPs fear Sh97 billion taxpayer burden
Matungulu MP Stephen Mule warned that taxpayers could end up paying more than Sh97 billion—over twice the original amount borrowed for the project.
Members of Parliament have voiced concerns over a government plan to securitise the Sports, Arts and Social Development Fund (SASDF) to raise more than Sh44 billion for the construction of Talanta Sports City. They warned the move could burden taxpayers with long-term debt.
The National Assembly’s Committee on Sports and Culture said the initiative—meant to finance one of the main venues for the 2027 Africa Cup of Nations—lacks transparency and adequate public consultation.
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During a Tuesday session with Sports Principal Secretary Elijah Mwangi and National Treasury’s Director-General for Public Investment and Portfolio Management, Lawrence Bet, the committee sought clarity on the proposed financing model and the diversion of SASDF resources to semi-autonomous government agencies (SAGAs).
Approved by Treasury
Bet, appearing on behalf of Treasury PS Chris Kiptoo, told MPs that the plan had already secured approvals from the Treasury, Attorney General and capital markets regulators, adding that the bond was listed on the Nairobi Securities Exchange in July 2025.
“The financing model will spread repayment over 15 years at an interest rate of 7.93 per cent, with proceeds directed towards completing Talanta Sports City in time for AFCON 2027,” Bet said.
Still, MPs raised concerns about the long-term financial implications.
Matungulu MP Stephen Mule warned that taxpayers could end up paying more than Sh97 billion—over twice the original amount borrowed for the project.
“By the end of the repayment period, Kenyans would have paid more than Sh97 billion, more than double the principal amount. This is a colossal amount of money to extract from already overtaxed citizens,” he said.
Mule also questioned how the government would service the debt while restricting betting, a major source of revenue for the Sports Fund.
Other MPs criticised the lack of transparency. Mwingi West MP Charles Nguna said Kenyans had been excluded from the process.
“There was no advertisement or public consultation on the financing model,” he said.
Scant details
Kabete MP and Committee Vice Chair James Wamacukuru faulted the Treasury for providing scant details.
“The submissions have been shallow with no evidence to justify the securitisation plan,” he said, pressing officials to explain how ordinary Kenyans would benefit from the project.
The Committee further pointed to delayed disbursements to SAGAs, despite parliamentary allocations.
“We are not happy that SAGAs remain in financial distress because Treasury is dragging its feet. This has hindered service delivery,” Wanyama said, urging immediate release of the funds.
The MPs resolved to demand a detailed cost-benefit analysis from the National Treasury and quarterly accountability reports from the SASDF Oversight Board before approving any additional funds.
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