The Capital Markets Authority (CMA) is proposing to reduce the minimum investment requirement for certain Real Estate Investment Trusts (REITs) from Kshs 5.0 mn to Kshs 100,000, representing a 98.0% reduction. The proposal, reported on 3 November 2026, seeks to widen investor participation and deepen Kenya’s capital markets by making property-backed investments accessible to a broader pool of investors. While the proposed change could lower the financial barrier to entry, its effectiveness will depend on whether it addresses the broader structural challenges that have constrained the growth of Kenya’s REIT market.
REITs are collective investment schemes that pool funds from investors to acquire, develop or manage income-generating real estate assets. They provide investors with an opportunity to gain exposure to the property market and earn returns through rental income distributions and potential capital appreciation without directly purchasing or managing property. Kenya’s REIT framework provides for two main structures: Income REITs (I-REITs), which invest in completed properties that generate rental income, and Development REITs (D-REITs), which finance the development and construction of properties for eventual sale or income generation.
The proposed reduction is particularly relevant to restricted I-REITs and D-REITs, where the Kshs 5.0 mn threshold has historically limited participation to professional and institutional investors.
