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Property investors seek stamp duty relief for Reits
Group Managing Director, Chief Executive Officer of Nation Media Group (NMG) and REITs Association of Kenya Chairperson Geoffrey Odundo on April 1, 2026 makes his address during the two-day African REIT conference at Enashipai Resort and Spa in Naivasha, Nakuru County.
Photo credit: Boniface Mwangi | Nation Media Group
Real estate market players want the government to reinstate the stamp duty exemption for Real Estate Investment Trusts (Reits) transfers to bolster appetite for alternative property investment channels in Kenya.
The duty is charged at four percent of the property value in urban zones and two percent in rural areas.
Speaking in Naivasha during the 2026 African Reits Conference at Enashipai Resort, industry players also called for improved regulatory transparency and increased developer awareness. These measures aim to make Reits more accessible to retail investors by reducing minimum investment thresholds.
This push comes as data from the REITs Association of Kenya (RAK) reveals that the market capitalisation for Kenyan Reits has nearly tripled to Sh24.6 billion over the past five years. This growth —up from Sh9.8 billion in 2021— underscores the asset class's appeal to investors seeking real estate exposure without the burden of putting up or managing physical properties.
RAK Chairman Geoffrey Odundo, who also serves as the Nation Media Group CEO, urged the government to bring back the stamp duty exemption for the REITs and their investee companies.
"The issuance of stamp duty has been an impediment to the industry. We encourage the government to exempt REITs from stamp duty in the transfer of assets, which will lower the cost of asset acquisition," said Mr Odundo.
He described Reits as an efficient way to democratise property ownership. "It is a way of selling property where one can trade small units to the public and even on the stock exchange to gain liquidity. It is the most attractive way for Kenyans to own property in the future," he added.
The transfer of property between development Reits and Investment Reits was exempted from Stamp duty as per Section 96A of the Stamp Duty Act, but this clause lapsed in December 2022. Therefore, all instruments executed after January 2023 have been liable for the full stamp duty.
Reits remain exempted from other taxes, including Corporate Income Tax, capital gains tax on certain types of property transfers and VAT. Distributions to unitholders (shareholders) are however not exempted from withholding tax, which is levied at five percent.
The sector is poised for further expansion with the planned listing of the multibillion-shilling Two Rivers International Finance and Innovation Centre (TRIFIC) Income-REIT later this year. Acting Housing Secretary Cassius Kasenya, representing PS Charles Hinga, noted that Kenyans are increasingly realising they can enjoy predictable incomes without the "brick and mortar" hassle of construction.
Currently, the Nairobi Securities Exchange features several Reits, including Acorn D-Reit, Acorn I-Reit, Fahari, and Imara Reits, mostly limited to high-net-worth investors making minimum trades of Sh5 million.
Most recently, the Sh3.8 billion Africa Logistics Properties (ALP) REIT was listed on March 11 with a 98.5 percent subscription rate.
Data shows that REITs have outperformed the broader equities market in three of the past five years, with the Kenya REITs Total Index beating the NSE All-Share Index.
Stakeholders remain hopeful that ongoing engagements with regulators regarding tax harmonization will yield policy reforms to further enhance the asset class's attractiveness.
