Africa-Press – Kenya. The value of Kenya’s Real Estate Investment Trusts (REITs) market capitalization has nearly tripled to Sh24.6 billion in the past five years, underscoring rapid growth of the asset class that provides investors an entry into real estate without having to construct their own buildings.
Data by the Real Estate Investment Trust (REIT) Association of Kenya shows the market has grown rapidly from Sh9.8 billion in 2021, indicating high investor appetite for alternative real estate investment channels.
The multi-billion shilling Two Rivers International Finance and Innovation Center (TRIFIC) Income-REIT is also in the pipeline for listing this year, setting the industry for further year-on-year growth.
“Kenyans are realizing they can invest in real estate and enjoy predictable incomes without necessarily going through the hassle of putting together brick and mortar to construct residential or commercial properties. This is a relatively young industry locally that is primed for significant growth,” noted the TRIFIC Special Economic Zone CEO, Brenda Mbathi.
REITs Association of Kenya market capitalization data shows a steady growth in the value of listed property, with the sharpest year-on-year increase being between 2020 and 2021 when market capitalization jumped by Sh8.8 billion.
Market turnover for the listed REITs dropped slightly to Sh1.5 billion last year, from a five-year peak of Sh1.7 billion in 2024.
The currently listed REITs in the Kenyan market include the Acorn D-REIT, Acorn I-REIT, Fahari and Imara REITs.
The Sh3.8 billion ($29.55 million) Africa Logistics Properties (ALP) REIT, which achieved a subscription rate of 98.5 percent, was listed on the Nairobi Securities Exchange (NSE) on March 11. InfraCo Africa Investment Limited has committed to invest an additional $5 million in ALP, which will raise the overall subscription rate to 115.17 percent.
The Sh5 billion ($37 million) US dollar-denominated TRIFIC I-REIT will be backed by rental income from the fully-occupied North Tower, a prime asset of high grade offices within the TRIFIC SEZ.
It is expected to be issued and later listed for trading within the first half of this year subject to regulatory approvals.
Mbathi noted that the TRIFIC I-REIT is designed to offer a low-risk, income-generating and liquid asset backed by the premier Two Rivers SEZ business district.
REITs Association of Kenya data also shows the performance of the Kenya REITs Price Only Index and the Kenya REITs Total Index has outperformed the NSE All-Share Index in three of the past five years.
This makes REITs a top asset choice for investors, according to Executive Director at Sterling Investment Bank, Crispus Kamau.
“Continued expansion of REITs exposure beyond traditional retail into specialised assets, affordable housing, and industrial formats means investors are likely to get consistently higher returns,” said Kamau.
He notes that ongoing stakeholder engagement with regulators on matters of tax harmonisation and structural efficiency are expected to yield policy reforms that will make REITs even more attractive to investors.
REITs investments currently enjoy a raft of tax benefits, including exemptions from income tax.
