Kenya Real Estate Investment Trusts Surge to Sh24.6 Billion Market Capitalization as Investor Appetite for Alternative Property Assets Triples

Kenya’s property funds hit a Sh24.6 billion valuation as TRIFIC and ALP REITs drive record growth and investor interest in alternative real estate assets.

By: AXL Media

Published: Mar 16, 2026, 10:51 AM EDT

Source: The information in this article was sourced from The Star

Exponential Growth in Kenya’s Property Investment Landscape

The valuation of Kenya’s Real Estate Investment Trusts (REITs) has undergone a dramatic transformation, nearly tripling to Sh24.6 billion over the last five years. Data released by the Real Estate Investment Trust Association of Kenya indicates that the market has climbed steadily from a baseline of Sh9.8 billion in 2021. According to Brenda Mbathi, CEO of the Two Rivers International Finance and Innovation Center (TRIFIC) Special Economic Zone, this trend reflects a growing realization among local investors that they can secure predictable returns from real estate without the traditional "brick and mortar" burdens of construction. The sector is now viewed as a maturing asset class capable of supporting large scale commercial and residential portfolios.

Strategic Listings Fueling Market Expansion

The momentum within the property fund sector is expected to accelerate with the upcoming listing of the TRIFIC Income-REIT. This Sh5 billion (approximately $37 million) US dollar denominated fund is backed by rental income from the North Tower, a high grade office asset within the Two Rivers Special Economic Zone business district. Mbathi noted that the TRIFIC I-REIT is designed to be a low risk, liquid asset, providing a sophisticated entry point for investors seeking stable yields. This development follows the successful listing of the Sh3.8 billion Africa Logistics Properties (ALP) REIT on March 11, which achieved an impressive subscription rate of 98.5 percent.

Comparative Performance Against Traditional Securities

Market analysis reveals that REITs are becoming a top choice for portfolio diversification, often outperforming traditional stocks. Data from the REITs Association shows that both the Price Only and Total Index for Kenyan property funds have surpassed the Nairobi Securities Exchange (NSE) All-Share Index in three of the past five years. While market turnover experienced a slight dip to Sh1.5 billion last year from a 2024 peak of Sh1.7 billion, the overall trajectory remains upward. Crispus Kamau, Executive Director at Sterling Investment Bank, emphasized that the consistent returns provided by these instruments make them highly attractive compared to more volatile equity options.