As part of its drive to deepen the Real Estate Investment Trusts (REITS) segment, the Capital Markets Authority (CMA) has approved the grant of a REIT Trustee license to Kenya Commercial Bank (KCB).
Besides the REITS Trustee license, KCB, a public listed company has a subsidiary, KCB Capital Ltd, operating as an investment bank.
As part of preparation for the roll-out of REITS, CMA has issued licenses to 6 REIT Managers and another 2 REIT Trustee licenses. The REITS are expected to help 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 REIT 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.
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.