If you’re looking to invest in property without buying land or buildings, you’ve probably asked: which are the authorized REITs in Kenya and how do they work?
Real Estate Investment Trusts (REITs) are one of the easiest ways to invest in real estate while earning passive income through dividends.
Quick Answer
Kenya has four authorized REITs regulated by the Capital Markets Authority. These include Acorn D-REIT, Acorn I-REIT, ILAM Fahari I-REIT, and LAPTRUST Imara I-REIT.
How REITs work in Kenya (Step-by-step)
Step 1: Understand what a REIT is
A REIT is a company that:
- Owns and manages real estate
- Pools investor funds
- Pays dividends from rental income
Step 2: Choose the type of REIT
There are three main types:
- Development REITs (D-REITs) – Focus on construction and development
- Income REITs (I-REITs) – Generate income from rent
- Islamic REITs – Shari’ah-compliant investments
Step 3: Invest through the stock market or fund
You can invest in REITs like shares and earn returns from:
- Rental income
- Property value appreciation
Full list of authorized REITs in Kenya
Here is the complete list of authorized Real Estate Investment Trusts (REITs) in Kenya:
1. Acorn Development Real Estate Investment Trust
A development-focused REIT that pools funds for real estate construction projects.
Location: Acorn House, 97 James Gichuru Road, Lavington, Nairobi
Contacts: 020 259 2671 / 020 259 2672
2. Acorn Income Real Estate Investment Trust
Focuses on generating income from completed real estate assets.
Location: Acorn House, 97 James Gichuru Road, Lavington, Nairobi
Contacts: 020 259 2671 / 020 259 2672
3. ILAM Fahari I-REIT
Kenya’s first listed REIT offering investors access to income-generating real estate.
Location: ICEA LION Centre, Riverside Park, Westlands
Contacts: +254 20 2750 000 / +254 0719 071 000 / +254 730 151 000
4. LAPTRUST Imara Income Real Estate Investment Trust
An income-focused REIT offering stable returns through rental income.
Location: Delta Corner Annex, Westlands
Contact: +254 0111 045 600
Extra tips before investing in REITs in Kenya
- Check performance and dividend history
- Understand the type of REIT (income vs development)
- Evaluate risk and investment horizon
- Diversify your investment portfolio
- Consult a financial advisor if needed
Common mistakes to avoid
- Investing without understanding REIT structure
- Ignoring market trends
- Expecting quick returns from development REITs
- Not reviewing financial reports
- Putting all capital into one REIT
FAQ: REITs in Kenya
1. Who regulates REITs in Kenya?
REITs are regulated by the Capital Markets Authority.
2. Are REITs profitable in Kenya?
Yes, especially income REITs that generate steady rental income.
3. What is the minimum investment for REITs in Kenya?
It depends on the REIT and platform used for investment.
Conclusion
Investing in authorized REITs in Kenya is a smart way to enter the real estate market without owning property directly. The REITs listed above are regulated, structured, and offer opportunities for both income and long-term growth.
Take time to understand each option and invest based on your financial goals.
