Kenya's REITs market surges as investor appetite grows
Real Estate
By
Brian Ngugi
| Mar 18, 2026
Brenda Mbathi, Chief Executive Officer of the TRIFIC Special Economic Zone. [File Courtesy]
Kenya's Real Estate Investment Trusts (REITs) market capitalisation has nearly tripled to Sh24.6 billion over the past five years, data from the industry association showed on Wednesday, signalling growing investor appetite for alternative property investment channels.
The market has grown rapidly from Sh9.8 billion in 2021, according to the REIT Association of Kenya, underscoring the asset class's appeal to investors seeking exposure to real estate without the burden of constructing and managing physical properties.
The sector is poised for further expansion with the planned listing of the multi-billion shilling Two Rivers International Finance and Innovation Center (TRIFIC) Income-REIT later this year.
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"Kenyans are realising 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," said Brenda Mbathi, Chief Executive Officer of the TRIFIC Special Economic Zone.
The sharpest annual increase occurred between 2020 and 2021, when market capitalisation jumped by Sh8.8 billion. Market turnover for listed REITs eased slightly to Sh1.5 billion last year, down from a five-year peak of Sh1.7 billion l in 2024.
Currently listed REITs on the Nairobi Securities Exchange include the Acorn D-REIT, Acorn I-REIT, Fahari and Imara REITs.
The Sh3.8 billion Africa Logistics Properties (ALP) REIT, which achieved a subscription rate of 98.5 percent, was listed on March 11. InfraCo Africa Investment Limited has committed an additional $5 million investment, which will raise the overall subscription rate to 115.17 per cent.
The Sh5 billion ($37 million) US dollar-denominated TRIFIC I-REIT is expected to be issued and listed for trading within the first half of this year, subject to regulatory approvals. The REIT will be backed by rental income from the fully-occupied North Tower, a prime office asset within the TRIFIC Special Economic Zone.
"It is designed to offer a low-risk, income-generating and liquid asset backed by the premier Two Rivers SEZ business district," Mbathi said.
REITs have outperformed the broader equities market in three of the past five years, with the Kenya REITs Price Only Index and Total Index beating the NSE All-Share Index, according to association data.
Ongoing stakeholder engagement with regulators on tax harmonisation and structural efficiency is expected to yield policy reforms that will further enhance the asset class's attractiveness, Kamau added. REITs investments currently enjoy a raft of tax benefits, including exemptions from income tax.