REITs in Kenya
Real estate has long been a cornerstone of wealth creation in Kenya—but buying property outright isn’t always practical. That’s where Real Estate Investment Trusts (REITs) come in. In 2025, REITs offer a powerful way to invest in property without the hassle of ownership, unlocking access to malls, student housing, office blocks, and more.
This guide breaks down how REITs work, the difference between Income REITs (I-REITs) and Development REITs (D-REITs), and how you can get started.
1. What Is a REIT?
A REIT is a regulated investment vehicle that pools money from multiple investors to acquire, manage, or develop real estate. Investors earn returns through rental income, property appreciation, or dividends.
REITs are regulated by the Capital Markets Authority (CMA) and must distribute at least 90% of taxable income to investors.
2. Types of REITs in Kenya
| REIT Type | Description | Risk Level | Return Type |
|---|---|---|---|
| I-REIT (Income) | Invests in completed, income-generating properties | Low–Medium | Rental income & dividends |
| D-REIT (Development) | Invests in real estate projects under construction | Medium–High | Capital appreciation |
| Islamic REIT | Shariah-compliant REIT focused on ethical assets | Low–Medium | Rental income |
3. Leading REITs in Kenya (2025)
A. Fahari I-REIT
- Managed by ICEA Lion Asset Management
- Invests in malls, offices, and commercial spaces
- Listed on the Nairobi Securities Exchange (NSE)
- Offers regular dividends but faces low trading volumes2
B. Acorn Student Accommodation REITs
- ASA I-REIT: Owns and manages student housing (e.g. Qwetu, Qejani)
- ASA D-REIT: Develops new student housing projects
- Traded on the Unquoted Securities Platform (USP)
- High demand and occupancy rates
C. Fusion Capital D-REIT (FRED)
- Focuses on commercial property development
- Targets capital gains from office and retail projects
4. How to Invest in a REIT
Step-by-Step:
- Choose a REIT: Decide between income (I-REIT) or development (D-REIT) based on your risk appetite.
- Open a CDS Account: Required to trade listed REITs on the NSE.
- Use a Licensed Broker: Find one via CMA’s official list.
- Buy Units: Through the NSE or Unquoted Securities Platform (USP).
- Track Performance: Monitor dividends, unit price, and portfolio updates.
5. Pros and Cons of REITs
Pros:
- Affordable Entry: Start with as little as KSh 5,000
- Diversification: Exposure to multiple properties
- Liquidity: Easier to sell than physical property
- Professional Management: No landlord duties
Cons:
- Market Volatility: Unit prices can fluctuate
- Limited Control: Investors don’t manage assets
- Taxation: Dividends are subject to withholding tax
- Low Trading Volumes: Especially on NSE-listed REITs
Final Thoughts
REITs are transforming how Kenyans invest in real estate—offering access to high-value assets without the burden of ownership. Whether you want steady income from malls or long-term gains from student housing developments, there’s a REIT for you.
