The Capital Markets Authority (CMA) has granted a license to NCBA Bank Kenya PLC to operate as a Real Estate Investment Trust (REIT) Trustee, a move that is expected to boost the real estate sector and the affordable housing agenda in the country.
REITs are collective investment schemes that pool funds from investors and invest them in income-generating real estate assets, such as residential, commercial, or industrial properties. REITs offer investors the opportunity to own a share of the real estate market and earn regular dividends from the rental income or capital appreciation of the properties.
The CMA Chief Executive Officer, Wyckliffe Shamiah, said that the Authority remains committed to supporting the National Government’s Affordable Housing agenda through facilitating the uptake of REITs, an innovative capital markets product. He added that 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.
The issuance of the license to NCBA Bank Kenya PLC 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 CMA said that it remains dedicated to providing a robust regulatory environment that encourages innovation and sustainable economic development.
The CMA is the statutory agency charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya. The CMA also regulates the commodity markets and online forex trading. The CMA’s vision is to be a key contributor to the emergence of Kenya as a global financial hub.