The Capital Markets Authority (CMA) has granted a license to NCBA Bank Kenya to operate as a Real Estate Investment Trust (REIT) Trustee.
- A trustee is a corporation or company appointed under a trust deed and licensed by the CMA to hold Real Estate assets on behalf of REIT investors.
- The trustee plays a vital role in assessing the feasibility of investment proposals from the REIT Manager and ensuring that scheme assets are invested in line with the Trust Deed.
- Notable REIT trustees in Kenya include Kenya Commercial Bank (KCB), Co-operative Bank (Coop), and Housing Finance Bank
The issuance of license is in line with the Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations, 2013; the Capital Markets (Corporate Governance) (Market Intermediaries) Regulations, 2011; and any other applicable Regulations.
‘’the Authority remains committed to support the National Government’s Affordable Housing agenda through facilitating uptake of REITs, an innovative capital markets product. NCBA Bank Kenya PLC is expected to support investments in the real estate sector, contributing to the growth of the economy and the Affordable Housing Initiative,’’ said CMA Chief Executive Officer, Wyckliffe Shamiah.
Shamiah emphasized the importance of REITs as a capital market’s product that not only provides an investment opportunity for Kenyans but also serves as a catalyst for the development of affordable housing projects.
