Sakaja announces green bonds to expand Nairobi's waste management system

The Nairobi County government will float a green bond that will be used to build a mass transit system and expand the infrastructure for waste management and water distribution.

Governor Johnson Sakaja on Tuesday said part of the green bond will also be used in sorting out the garbage issue in Nairobi by converting waste to energy to deal with waste collection and create employment.

"We need to offer the residents of Nairobi solutions that clears out the mess that has been witnessed over the years. We intend to float a green bond, and what we raise will be used to create order and also open up opportunities for our people and also make Nairobi work for everyone," the Governor said.

The county boss made the announcement at the Nairobi Securities Exchange (NSE) during the bell-ringing ceremony to mark the launch of the enhanced NSE Market Place.

Green bonds are fixed-income instruments specifically created to raise money for climate and environmental projects.

Usually, the bonds are asset-linked and backed by the issuing entity’s balance sheet to carry the same credit rating as their issuers’ other debt obligations.​

Sakaja said the exact amount to be raised will be announced later.

Governor Sakaja further noted that the Kenya Kwanza Government has placed special focus on domestic capital mobilization which is critical in supporting medium to long term fiscal consolidation plans.

“The visit by His Excellency the President to NSE highlights the Government efforts to stimulate private investments in public assets and projects with a view to strengthening the fiscal position of the country, reduce reliance on foreign debt as well as boost economic recovery through capital markets," he added.

According to Sakaja, the Nairobi Water and Sewerage Company alone will need a capital investment of about Ksh.30 billion to be able to offer services and develop a proper water and waste management system that will serve the people of Nairobi.

"We look forward to partnering with the Ministry of Investments, Trade and Industry and associated state corporations and agencies to conceptualize and explore county financing options through the NSE to facilitate the mobilization of low-cost and long- term private capital to finance, or refinance the County’s projects,” he said.