Kiprono Kittony defends tax-free Linzi Bond as key to funding Talanta Stadium
By Kiprono Keileb, August 5, 2025Kenya National Chamber of Commerce and Industry (KNCCI) Chairman Kiprono Kittony has come to the defence of the Linzi Finco Bond, describing it as a strategic and tax-free investment tool designed to unlock Ksh54 billion for the completion of the Talanta Sports Complex.
Speaking on a talk show aired by a local television station on Tuesday, August 5, 2025, Kittony addressed growing public concerns over why a private bond like Linzi Finco would enjoy tax-free interest income, a benefit typically reserved for government-issued infrastructure bonds.
“This is not just any private bond; Linzi Bond is designed to support government finance and infrastructure at a time when our debt-to-GDP ratio has reached its ceiling, making it harder for Kenya to access funding from global financial institutions like the World Bank,” Kittony said.
He explained that by making the bond tax-free, the government is using a well-established model to incentivise investment, similar to what is already done with infrastructure bonds.
“The tax-free status is a way to attract local investors. It’s a method that has been used successfully before. Linzi Bond simply mirrors that approach for a project of national importance,” he said.
Kittony further emphasised the legitimacy and safety of the bond, noting that it went through proper regulatory processes.
“Linzi Finco was listed before being offered to the public; you cannot take a bond to market through the Nairobi Securities Exchange before getting approvals from the Capital Markets Authority (CMA),” he noted.
He assured investors that their funds are protected through CMA oversight and governance structures.
“That’s why you can’t lose your money. The CMA ensures governance is in place to safeguard public investment,” Kittony added.
Importantly, he clarified that this bond is not reserved for elite investors.
“Ordinary Kenyans can participate in this. It’s not an exclusive product. It’s about involving everyone in building something that will bring global sporting events to our country,” he said.
The Talanta Stadium, part of the government’s broader sports and youth empowerment agenda, is expected to elevate Kenya’s profile as a host for international sports competitions.
With the government facing limited borrowing options, Kittony said innovative financing models like Linzi Bond could help plug infrastructure gaps without pushing the country deeper into debt.
“This is how we innovate our way through financial limitations by partnering with private investors under clear regulation,” he concluded.