The 10 Best REITs in Kenya for 2025: A Complete Investment Guide.

Real Estate Investment Trusts (REITs) have emerged as one of Kenya’s most promising investment vehicles, offering ordinary investors access to premium real estate portfolios without the complexities of direct property ownership. With strong performance records and attractive returns, REITs are transforming how Kenyans build wealth through real estate. This comprehensive guide explores the 10 best REITs in Kenya for 2025 and everything you need to know about investing in them.

What Are REITs in Kenya?

A Real Estate Investment Trust (REIT) is a regulated collective investment vehicle that enables persons to contribute money as consideration for the acquisition of rights or interests in a trust that is divided into units with the intention of earning profits or income from real estate as beneficiaries of the trust.

REITs operate as trusts rather than companies, with properties held by a corporate trustee who acts as custodian while a corporate REIT manager handles operations. This structure provides transparency and professional management while offering investors liquidity through trading on the Nairobi Securities Exchange (NSE).

Types of REITs in Kenya

Kenya’s REIT framework recognizes three main types:

Development Real Estate Investment Trusts (D-REITs)

D-REITs pool investor capital for acquiring real estate with the intention of undertaking development and construction projects. These trusts focus on capital appreciation through property development and eventual sale or lease of completed properties.

Income Real Estate Investment Trusts (I-REITs)

I-REITs invest in long-term income-generating real estate including housing, commercial, and other properties. They provide steady rental income to investors through established properties with consistent cash flows.

Islamic Real Estate Investment Trusts

These unique REITs undertake only Shari’ah compliant activities, with fund managers required to conduct compliance tests before making investments to ensure adherence to Islamic principles.

The 10 Best REITs in Kenya for 2025

1. LAPTRUST Imara I-REIT (LAPR)

Status: Listed on NSE Main Board (Restricted Segment)
Type: Income REIT (I-REIT) – Mixed-use
Launch: March 2023 – Kenya’s first pension-scheme sponsored REIT

LAPTRUST Imara I-REIT stands out as Kenya’s most successful REIT in 2024, delivering stellar performance with 46% rental income increase to KSh 579.2 million and 44% net profit growth to KSh 353.8 million. The REIT recommended a dividend of KSh 0.82 per unit for 2024, representing approximately KSh 153.3 million in total payouts.

Portfolio Highlights:

• Seven diversified properties including three CBD office towers (Metro Park, CPF House, Pension Towers)
• Freedom Heights shopping mall with adjacent service plot
• Man Apartments residential housing in Kilimani
• NOVA School Eldoret annex

Investment Focus: Long-term government and corporate leases for stability
Minimum Investment: Restricted to professional investors (KES 5 million)
Performance: Highest dividend yield of 8.2% in FY’2024

2. Acorn Student Accommodation I-REIT (ASA I-REIT)

Status: Trading on NSE Unquoted Securities Platform
Type: Income REIT (I-REIT) – Residential (Student Housing Specialist)

The ASA I-REIT delivered outstanding H1 2025 results with KSh 252.0 million net profit (54% YoY increase) and approximately 94% portfolio occupancy across 4,400+ beds. The trust paid an interim dividend of approximately KSh 126 million in 2025.

Performance Metrics:

• Current Price: KSh 22.2 per unit (11% gain from KSh 20 inception price)
• Surpassed KSh 1 billion in annual rental revenue for the first time
• Portfolio occupancy rate of ~94%
• Net profit of KSh 652 million in FY’2024 (92% growth)

Investment Grade: Set up as investment-grade student housing fund backed by InfraCo Africa

3. Acorn Student Accommodation D-REIT (ASA D-REIT)

Status: Trading on NSE Unquoted Securities Platform
Type: Development REIT (D-REIT) – Residential (Student Housing Development)
Scale: KSh 125 billion REIT targeting ~8,800 new beds in Nairobi over 5 years

The ASA D-REIT demonstrated exceptional performance in H1 2025 with KSh 205.0 million net profit (13% YoY increase) and KSh 157.9 million rental income (+197% growth). The trust’s NAV per unit rose to KSh 27.36, representing a 7.9% gain.

Key Achievements:

• Current Price: KSh 25.4 per unit (27% gain from KSh 20 IPO level)
• Total AUM: KSh 15 billion (36.7% rise from KSh 11 billion)
• Net profit surge of 1,073.8% to KES 839.9 million in 2024
• Distribution paid: KES 1.08 per unit in December 2024

Development Pipeline: Ongoing projects in Juja, CBD, Hurlingham, and Eldoret

4. ILAM Fahari I-REIT (Formerly Stanlib Fahari I-REIT)

Status: Pioneer REIT – Kenya’s first listed and regulated REIT (launched 2015)
Type: Income REIT (I-REIT) – Commercial/Mixed-use
Management: Originally by Stanlib Kenya, now ICEA Lion’s ILAM

ILAM Fahari I-REIT reported a remarkable turnaround in FY’2024 with net profit of KES 377 million, a significant improvement from a minor loss of KES 297,642 in 2023. This profit surge was attributed to fair value gains in the investment property portfolio.

Current Status:

• Current Price: KSh 11.0 per unit (significant decline from KSh 20.0 issue price)
• Total AUM: Increased by 6.4% to KES 3.55 billion
• Strategy: Emphasizes steady dividend payouts despite price underperformance
• Recent Development: Strategic transition to USP in 2024

Portfolio: Income-generating commercial properties including Greenspan Mall (Donholm), 67 Gitanga Place (Lavington), Highway House and other office spaces

5. Centum Real Estate USD I-REIT

Status: Kenya’s first US dollar-denominated I-REIT (planned 2025)
Type: Income REIT (I-REIT) – Mixed-use
Innovation: Targets foreign investors by denominating in USD to hedge currency risk

This upcoming REIT represents a significant innovation in Kenya’s market, as it will be the first USD-denominated I-REIT. The dollar-based structure is expected to increase foreign investments by boosting investor confidence against local currency uncertainties.

Significance: Would broaden Kenya’s REIT market with international currency option, potentially setting precedent for other innovative financial products.

6. Mi Vida Homes Affordable Housing REIT

Status: Private/Upcoming – Residential (Affordable Housing)
License: CMA REIT-manager license secured August 2024
Scale: Building ~5,000 eco-friendly affordable units (targeting 250,000 nationally)

This REIT is strategically positioned to benefit from Kenya’s affordable housing agenda, with collaboration with KCB Bank for large-scale development. The focus on affordable housing aligns with government priorities and addresses the significant housing deficit in Kenya.

Target: Steady rental income from affordable housing sector leveraging government support

7. Future Construkt Affordable Housing REIT

Status: Private/Upcoming – Residential (Affordable Housing)
License: CMA REIT-manager license obtained late 2024
Parent: Future Construkt Investment Managers (Construkt Africa subsidiary)

Expected to launch in 2025, this REIT will leverage Kenya’s Affordable Housing agenda to finance new housing projects for sale/rent, addressing the housing gap. The specialization in planned affordable housing developments nationwide positions it well for government alignment.

8. Cytonn Asset Managers (CAML) REIT

Status: Private/Upcoming – Mixed-use
License: CMA REIT-manager license granted February 2019
Authority: Licensed for both Development and Income REITs

With Cytonn’s large existing real estate portfolio, this REIT has significant potential for mixed-use developments including affordable housing and commercial properties. As the ninth licensed Kenyan REIT manager, it represents market expansion opportunities.

9. CIC Asset Management REIT

Status: Private/Upcoming – Commercial/Mixed-use
Parent: CIC Insurance’s asset-management arm
License: Holds CMA REIT license (7th licensed manager)

This REIT is likely to target institutional-grade assets including offices and housing, with expected focus on insurance and pension fund investments. The backing by CIC Insurance provides stability and institutional support.

10. Licensed REIT Managers Pipeline

Licensed Managers: UAP Cassava, Nabo Capital, Fusion Investment
Sectors: Various (affordable housing, retail, offices)
Timeline: Expected launches in near future

These licensed managers represent the growing pipeline expanding Kenya’s REIT ecosystem, with various sector focuses that will provide investors with diverse options.

How to Invest in REITs in Kenya

Step-by-Step Investment Process

1. Open a Brokerage Account
Choose a reputable brokerage firm registered with the Capital Markets Authority (CMA). You’ll need a Central Depository System (CDS) account, which costs approximately KSh 800 for 100 shares.

2. Fund Your Account
Deposit the amount you wish to invest into your brokerage account.

3. Research and Select REITs
Analyze available REITs based on their portfolio composition, management team, and financial performance.

4. Place Investment Orders
Buy REIT units through your broker or online trading platform, specifying the desired quantity and price.

5. Monitor Your Investment
Keep track of market trends, REIT performance, and industry developments.

Alternative Investment Platforms

Vuka Investment Platform: Offers access to Acorn I-REIT with target returns of 7-10% p.a. and projected total returns of 12%+ p.a. over a 5-year holding period. This platform provides digital access with easier buying and selling of units, making investments more liquid compared to direct real estate.

REIT Returns in Kenya

Performance Overview

Kenya’s REITs delivered strong performance in FY’2024, with combined Net Operating Income (NOI) seeing a 107.1% increase to KShs 2.2828 billion from KShs 1.102 billion in FY’2023. The sector showed impressive growth across key metrics:

Combined Performance Metrics:

• Funds from Operations (FFO) increased by 200.4% to KShs 2.7856 billion
• Cash Available for Distribution (CAD) increased by 12.8% to KShs 924.5 million
• Average REIT yields came in at 7.2%

Individual REIT Returns

Best Performing REITs by Yield (FY’2024):

• LAPTRUST Imara I-REIT: 8.2% dividend yield
• Acorn D-REIT: 4.5% dividend yield
• ILAM Fahari I-REIT: 2.7% dividend yield
• Acorn I-REIT: 1.7% dividend yield

REITs are yielding approximately 11.1% compared to an 8.1% dividend yield for stocks at the NSE, making them attractive for income-seeking investors.

REITs Minimum Investment Requirements

Professional vs. Retail Investors

Professional Investors (KES 5 million minimum):

• D-REITs require minimum investment of KSh 5 millions
• Restricted I-REITs (like LAPTRUST Imara I-REIT) require KSh 5 million

Retail Investors:

• Unrestricted I-REITs have no regulatory minimum amount
• ILAM Fahari I-REIT: Approximately KSh 800 for 100 shares
• Acorn I-REIT through Vuka: More accessible to retail investors

The high minimum investment threshold of KSh 5 million for certain REITs has been identified as a barrier limiting individual participation. Regulatory discussions are ongoing to lower these thresholds to make REITs more inclusive.

Are REITs a Good Investment in Kenya?

Advantages of REIT Investment

1. Tax Benefits
REITs enjoy significant tax advantages in Kenya:

• Corporate tax exemption (saving 25% annually).
• Exempt from stamp duty, VAT, and capital gains tax on property transfers.
• Only 5% withholding tax on distributions to resident investors (10% for non-residents).

2. Liquidity and Accessibility
Unlike direct property investment, REIT units can be bought and sold on the NSE between 9:30am and 4:30pm on any weekday. This provides significant liquidity advantages over physical real estate ownership.

3. Professional Management
REITs are managed by experienced real estate professionals who handle property acquisition, leasing, and maintenance. This eliminates the burden of direct property management for investors.

4. Diversification Benefits
REITs typically invest across various property types and locations, spreading risk and providing portfolio diversification. They also have relatively low correlation with other asset classes.

5. Consistent Income Stream
Kenyan REIT regulations mandate distribution of at least 80% of net distributable income to unit holders as dividends. This ensures consistent and often high dividend yields.

Investment Considerations

Market Performance vs. Challenges
While REITs offer attractive yields, some have experienced challenges. ILAM Fahari I-REIT, for instance, has lost over 65% of its value since inception despite yielding around 12.1% currently. This highlights the importance of considering both dividend yields and capital appreciation potential.

Risk Factors:

• Industry-specific risks from real estate market cycles
• Regulatory compliance requirements
• Land title and registration process uncertainties
• Interest rate sensitivity affecting property values

Sector Challenges to Address

1. Regulatory Improvements Needed

• High minimum capital requirement of KSh 100 million for REIT trustees
• Lengthy approval procedures for establishing REITs
• Need for improved investor awareness and education

2. Market Development
Kenya’s REIT market capitalization represents only 0.07% of GDP, significantly lower than developed markets. South Africa, despite launching REITs after Kenya in 2013, has 33 listed REITs compared to Kenya’s four.kmrc

Investment Recommendations

For Different Investor Profiles

Conservative Income Investors: LAPTRUST Imara I-REIT offers the highest dividend yield (8.2%) with stable government and corporate tenants.

Growth-Oriented Investors: Acorn D-REIT provides exposure to Kenya’s expanding student accommodation market with strong development pipeline.

Diversification Seekers: ILAM Fahari I-REIT offers commercial property exposure with potential for recovery following recent strategic restructuring.

International Exposure: Upcoming Centum USD I-REIT will provide currency diversification benefits.

Key Investment Considerations

1. Diversification: Don’t concentrate all investments in one REIT; spread across different property types and managers
2. Time Horizon: REITs are best suited for medium to long-term investment (5+ years recommended)
3. Regular Monitoring: Track performance, occupancy rates, and management effectiveness
4. Professional Advice: Consider consulting financial advisors, especially for large investments

Conclusion

Kenya’s REIT market represents a compelling investment opportunity for 2025, offering diversified real estate exposure, attractive yields, and professional management. While the sector faces challenges around accessibility and market development, ongoing regulatory improvements and new product innovations signal continued growth potential.

The 10 REITs highlighted in this guide provide various investment options, from established performers like LAPTRUST Imara I-REIT to innovative upcoming offerings like Centum’s USD-denominated REIT. For investors seeking stable income, capital appreciation, and portfolio diversification, REITs offer a sophisticated alternative to direct property ownership while maintaining the benefits of real estate investment.

As Kenya’s capital markets continue to mature and investor education improves, REITs are positioned to play an increasingly important role in wealth creation and addressing the country’s infrastructure development needs. The key is selecting REITs that align with your investment objectives, risk tolerance, and time horizon while maintaining a diversified approach across the sector.