NAIROBI, Kenya, Jan 13 – The Capital Markets Authority has approved the grant of a REITS Trustee license to Kenya Commercial Bank (KCB) as part of its drive to deepen the Real Estate Investment Trusts (REITS) segment.
In a press statement sent to newsrooms, CMA noted that it had reviewed the application and was satisfied that KCB had complied fully with the requirements of Regulation 125 of Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations, 2013.
Besides the REITS Trustee license, KCB has a subsidiary – KCB Capital Ltd – operating as an investment bank.
As part of preparation for the rollout of REITS, the Capital Markets Authority has issued licenses to six REIT Managers and another two REIT Trustee licenses.
REITS are expected to help the real estate industry in Kenya by facilitating access to funding from the capital market, while allowing investors an opportunity to diversify their investment portfolios.
A REITS is a collective investment scheme in real estate, structured as a trust where an investor owns rights or interests in property in the form of units and earns returns from income or capital gains.
There are two types of REITS in Kenya; Income REITS, which derive income from property rentals, and Development REITS, which are involved in development and construction of properties for sale or rental.