Top 5 Best Real Estate Investment Trusts (REITs) in Kenya – 2025

If you’ve ever dreamt of owning real estate without the hustle of buying land, building houses, or managing tenants, REITs might just be your perfect match. In Kenya, Real Estate Investment Trusts (REITs) are becoming an increasingly popular way for ordinary investors to earn passive income from property — without needing millions to get started.

But with several REITs now on the market, how do you know which ones are actually performing? In this article, we break down the top 5 REITs in Kenya in 2025, what they invest in, how they’re performing, and what kind of returns you can expect — so you can make smarter investment decisions with your money.

Top 5 Best Real Estate Investment Trusts (REITs) in Kenya – 2025

1. Acorn Student Accommodation D-REIT (Development REIT)

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

3. ILAM Fahari I-REIT

4. Laptrust Imara I-REIT

5. Centum Real Estate I-REIT (Proposed)

1. Acorn Student Accommodation D-REIT (Development REIT)

ASA D-REIT is a Development REIT, meaning it focuses on building real estate projects from scratch — specifically student hostels.

What it invests in

It finances the construction of student housing under brands like Qwetu and Qejani in Nairobi, targeting university students.

How it works

Once these buildings are complete and profitable (i.e., rented out consistently), they’re sold to the ASA I-REIT, which holds and manages them long-term. Investors in ASA D-REIT earn through capital gains when the developed properties appreciate and are sold.

Who it’s for

Long-term investors who want to benefit from real estate growth, especially in student housing — but with a little more patience, since returns often come after development.

• Focus: Developing purpose-built student accommodations.​
• Performance: As of January 31, 2025, traded at Ksh 25.4 per unit, marking a 27% gain from its inception price of Ksh 20.0.​
• Platform: Unquoted Securities Platform (USP).​
• Highlights: Targets the growing demand for student housing in Kenya.​

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

ASA I-REIT is an Income REIT, which means it buys and manages already-built, income-generating properties.

What it invests in

It owns and manages stabilized student hostels (those already built by the ASA D-REIT) and earns income by collecting rent from students.

How it works

Investors make money through regular dividends, funded by the rental income from the properties. Since the hostels already have tenants, this REIT is more stable and focuses on steady income rather than growth.

Who it’s for

Investors who want consistent rental income without the risk and waiting period that comes with development projects.

• Focus: Income-generating student accommodation properties.​
• Performance: As of January 31, 2025, traded at Ksh 22.2 per unit, an 11% gain from its inception price of Ksh 20.0.​
• Platform: Unquoted Securities Platform (USP).​
• Highlights: Provides regular income to investors through rental yields.​

3. ILAM Fahari I-REIT

ILAM Fahari is Kenya’s only listed REIT on the Nairobi Securities Exchange (NSE), and it's also an Income REIT.

What it invests in

It owns a diversified portfolio of commercial properties — including shopping malls like Greenspan Mall, office spaces, and warehouses.

How it works

It earns income by leasing these properties to businesses and shops. Investors receive dividends from the rent collected.

Who it’s for

Retail and institutional investors who want exposure to Kenya’s commercial real estate market and prefer investing via the NSE for easier access and liquidity.

• Focus: Invests in a diversified portfolio of income-generating real estate assets.​
• Performance: As of January 31, 2025, traded at Ksh 11.0 per unit, a 45% decline from its inception price of Ksh 20.0.​
• Platform: Unquoted Securities Platform (USP), following delisting from the Nairobi Securities Exchange (NSE) in February 2024.​
• Highlights: Undergoing restructuring to focus on growth, with plans to double its portfolio value from Ksh 3.5 billion to Ksh 7 billion within the next three to four years. ​

4. Laptrust Imara I-REIT

Laptrust Imara I-REIT is a restricted, closed-ended Income Real Estate Investment Trust listed on the Restricted Sub Segment of the Nairobi Securities Exchange (NSE) since March 22, 2023. ​

What it invests in

The REIT focuses on income-generating properties, including:​

• Freedom Heights Mall​
• Pension Towers​
• CPF House​
• Metro Car Park​
• Man Apartments​
• Freedom Heights Service Plot​

These properties are strategically located and contribute to the REIT's rental income. ​

How it works

As a closed-ended fund, initial investors hold the units for a specified period. After three years, the promoter plans to exit, making the shares available to the general public, specifically professional investors.

Who it’s for

Currently, the REIT is tailored for professional investors due to its restricted nature. However, upon the promoter's exit after the three-year period, it will open up to a broader investor base.

• Focus: Invests in a mix of commercial and residential properties.​
• Performance: Specific performance data for 2025 is not publicly available.​
• Platform: Listed on the Nairobi Securities Exchange (NSE).​
• Highlights: Managed by Laptrust, targeting stable income and capital growth.​

5. Centum Real Estate I-REIT (Proposed)

Centum has ventured into real estate through private REIT structures, aiming to unlock value from its vast property developments — such as the Two Rivers Mall and residential projects like Pearl Marina in Uganda.

What it invests in

Primarily mixed-use developments, combining residential, commercial, and retail spaces.

How it works

While still forming under private REIT models, Centum's approach is to eventually create REITs that can offer investors income from rent and capital appreciation from ongoing projects.

Who it’s for

Currently more attractive to institutional and high-net-worth investors, but future plans may open it to the general public.

• Focus: Income-generating properties within the Two Rivers development, including office spaces, retail outlets, and residential units.​
• Performance: As of early 2025, this REIT is in the proposal stage and not yet operational.​
• Platform: Planned to be listed, with specifics to be announced.​
• Highlights: Aims to be Kenya's first dollar-denominated I-REIT, attracting international investors.​

Conclusion

Investing in REITs provides a pathway to participate in Kenya's real estate sector with potentially lower capital requirements and diversified exposure. While some REITs like the Acorn Student Accommodation D-REIT and I-REIT have shown positive performance, others like ILAM Fahari I-REIT are undergoing restructuring to enhance returns. Prospective investors should conduct thorough due diligence, considering factors such as performance history, management quality, and market conditions before investing.​

Note: The information provided is based on available data as of early 2025. Investors are advised to consult financial advisors or conduct independent research before making investment decisions.

Frequently Asked Questions About REITs in Kenya

Q1: What is a Real Estate Investment Trust (REIT) in Kenya?

A REIT in Kenya is a regulated investment vehicle that pools funds from investors to invest in income-generating real estate assets. It allows individuals to earn returns from real estate investments without directly owning or managing properties. ​

Q2: How do REITs work in Kenya?

Investors purchase units in a REIT, and the pooled funds are used to acquire or develop real estate properties. Income generated from these properties, such as rent, is distributed to investors as dividends. REITs are managed by professional fund managers and are regulated by the Capital Markets Authority (CMA). ​

Q3: Are REITs a good investment in Kenya?

REITs offer a way to invest in real estate with relatively lower capital requirements and provide diversification and liquidity. They can be a good investment for those seeking regular income and exposure to the real estate sector. However, like all investments, they carry risks and should be considered as part of a diversified portfolio.​

Q4: How can I invest in REITs in Kenya?

To invest in REITs, you can:​

• Open an account with a licensed stockbroker or investment bank.​
• Purchase REIT units through the Nairobi Securities Exchange (NSE) for listed REITs.​
• For unlisted REITs, invest through platforms like the Unquoted Securities Platform (USP).​Ensure you understand the specific REIT's structure and investment strategy before investing.​

Q5: What are the types of REITs in Kenya?

Kenya has primarily two types of REITs:​

• Income REITs (I-REITs): Focus on acquiring and managing income-generating properties.​
• Development REITs (D-REITs): Focus on developing real estate projects for capital gains.​Each type has different risk and return profiles.​

Q6: What are the benefits of investing in REITs in Kenya?

Benefits include:​

• Diversification: Exposure to real estate without owning physical property.​
• Liquidity: Easier to buy and sell compared to physical properties.​
• Professional Management: Managed by experienced fund managers.​
• Regular Income: Potential for consistent dividend payouts.​

Q7: What are the risks associated with REITs in Kenya?

Risks include:​

• Market Risk: Property values and rental incomes can fluctuate.​
• Liquidity Risk: Some REITs may be less liquid, especially unlisted ones.​
• Management Risk: Performance depends on the competence of the REIT managers.​

Q8: Are REITs regulated in Kenya?

Yes, REITs are regulated by the Capital Markets Authority (CMA) under the Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations, 2013. ​

Q9: What is the minimum investment required for REITs in Kenya?

The minimum investment varies depending on the REIT. For example, some listed REITs may require a minimum investment of Ksh 20,000. It's essential to check the specific requirements of each REIT. ​

Q10: Can foreigners invest in Kenyan REITs?

Yes, foreign investors can invest in Kenyan REITs, subject to compliance with local regulations and any restrictions set by the CMA.