Talanta Bond Investors Set for Sh6.5 Billion Payout as Betting Tax Collections Back Returns

Investors who put money into the Talanta bond used to finance the Raila Odinga International Stadium are set to receive Sh6.5 billion over the year beginning July 7, supported by projected gambling tax collections through the Sports Fund.

The payout highlights the growing role of sports-linked financing models where investment returns are tied to dedicated revenue streams rather than direct government guarantees.

The government raised Sh44.79 billion through the 15-year bond last year, with investor returns funded through betting taxes. Investors already received their first payment of about Sh3.25 billion on January 7 and are expected to receive another Sh3.25 billion on July 7, before a second payment of the same amount on the following January 7.

To support these obligations, Sports Fund collections are projected to increase by 35.3 percent from Sh18.3 billion recorded in the last financial year. The Ministry of Sports expects betting-related revenues to generate about Sh2.07 billion every month.

The bond offers a 15.04 percent return and is projected to generate Sh57.6 billion in tax-exempt interest across its lifespan, placing it in the same tax category as government-issued infrastructure bonds.
Liaison Group issued the bond through Linzi FinCo 003 Trust, supported by a standby letter of credit from KCB Bank to cushion investors in the event of delays in Treasury disbursements.

The financing arrangement is linked to the construction of the 60,000-seater Raila Odinga International Stadium, which is now 91 percent complete and is scheduled to host the 2027 Africa Cup of Nations, including the opening and closing ceremonies.

Treasury has also allocated Sh1.5 billion for Pamoja AFCON preparations to cover temporary staff, advertising, insurance and other operating costs.

The Sports Fund’s 10-year tenure ends in August 2028, while the bond remains active for 15 years and does not carry a government guarantee, leaving investors dependent on Public Finance Management Act provisions if the fund is dissolved.