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 rollout of REITS, CMA has issued
licenses to 6 REIT Managers and another 2 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
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.
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