Sharp Daily
No Result
View All Result
Friday, June 6, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Real Estate

Kenya’s real estate sector hamstrung by underdeveloped capital markets

Allan Lenkai by Allan Lenkai
July 26, 2024
in Real Estate
Reading Time: 2 mins read

Underdeveloped capital markets in Kenya continue to pose significant challenges for real estate developers, hindering their ability to access diverse pools of capital. This issue is particularly acute in the private markets, which are crucial for supplementing government efforts to provide housing.

Currently, Kenyan banks serve as the primary source of funding for real estate developers, providing nearly 95.0% of funding. This contrasts sharply with the situation in developed countries, where banks contribute only 40.0% of the funding, with capital markets stepping in to provide the remaining 60.0%. In Kenya, capital markets contribute a mere 5.0% to real estate development funding.

To overcome this challenge, Kenya must take several strategic steps to develop and strengthen its capital markets.

REITs have proven successful in developed markets as a vehicle for pooling investments in real estate projects. By offering attractive returns and liquidity, REITs can attract a broader investor base. To promote REITs in Kenya, regulatory bodies must simplify the approval processes and provide incentives for both local and foreign investors.

RELATEDPOSTS

Unlocking Kenya’s real estate potential through public-private partnerships

February 28, 2025

Opinion: Investing in short-stay & airbnb rentals in Kenya

February 18, 2025

A robust regulatory framework is essential for instilling investor confidence in capital markets. The Capital Markets Authority (CMA) should focus on creating transparent, efficient, and investor-friendly regulations. This includes enforcing strict disclosure requirements and ensuring the protection of investors’ rights.

Public-Private Partnerships can play a pivotal role in bridging the funding gap in the real estate sector. By leveraging private sector expertise and resources, PPPs can help expedite the development of housing projects. The government should create a conducive environment for PPPs by offering tax incentives and streamlining bureaucratic processes.

Educating the public about investment opportunities in capital markets is crucial. Increased financial literacy can lead to a more informed and active investor base. Initiatives such as workshops, seminars, and online courses can help demystify capital market investments and encourage more people to participate.

Pension funds and insurance companies hold significant financial resources that can be channeled into real estate development. The government and regulatory bodies should create favorable conditions for these institutions to invest in real estate projects, including offering tax incentives and reducing investment restrictions.

Infrastructure bonds can be an effective way to raise capital for large-scale housing projects. These bonds offer investors a relatively secure investment with the potential for attractive returns. By promoting infrastructure bonds, Kenya can tap into both local and international sources of funding.

Strong corporate governance practices are essential for attracting investors to capital markets. Real estate companies should adopt best practices in corporate governance, including transparent reporting, accountability, and ethical business practices. This can help build trust and attract more investment.

Previous Post

How to retire early: Essential tips for smart saving and investing

Next Post

How to turn around Kenya’s economy: Lessons from Argentina

Allan Lenkai

Allan Lenkai

Related Posts

Real Estate

Restructure housing levy to solve Kenya’s housing crisis

May 23, 2025
Real Estate

Navigating the fallout of foreign aid reductions

May 20, 2025
International

Knight Frank; Kenya’s wealthy are trading mansions for market moves

May 16, 2025
Real Estate

Nairobi real estate divide

May 15, 2025
Real Estate

A KES 6.4 million real estate heartbreak in Syokimau

May 12, 2025
Real Estate

Hass property index: Kenya’s real estate market rebounding

May 6, 2025

LATEST STORIES

How Kenya’s E-Mobility shift could redefine urban planning

June 5, 2025

Economic liberators are the real heroes and heroines of the year

June 5, 2025

Affordable retirement planning for small businesses with CURBS

June 5, 2025

How Kenyan banks can modernize without marginalizing

June 4, 2025

Human rights concerns over activists’ treatment in Tanzania

June 4, 2025

Decoding stock-based compensation

June 4, 2025

Comparative advantage is the secret to real economic take off

June 4, 2025

Understanding inflation and its impact on everyday life

June 4, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024