Kenya's Real Estate Investment Trusts (REITs) market is poised for renewed growth after the Finance Act 2026 restored key tax incentives, with industry players saying the changes are expected to attract more investors, unlock capital and strengthen confidence in the country's property investment sector.
The renewed optimism dominated discussions at the REIT Tax Breakfast Forum held on Tuesday by the REITs Association of Kenya (RAK), where investors, regulators, policymakers and industry professionals examined how the new tax framework is expected to shape the future of the country's REIT market.
Speaking during the forum, RAK Chairman Raghav Gandhi said the restoration of Stamp Duty and Capital Gains Tax exemptions for qualifying property transfers into REITs represents a major breakthrough for the industry and is expected to support the expansion of Kenya's property investment market.
He said the tax reforms will encourage more investment, improve market liquidity and create a stronger environment for the growth of REITs.
The forum, held under the theme, "Demystifying REIT Tax Exemptions – Finance Act 2026: From Advocacy to Action in Unlocking Kenya's REIT Market and Capital Formation," focused on helping stakeholders understand the practical impact of the Finance Act 2026 on REIT structures, investment decisions and capital mobilisation.
Participants also discussed how the new tax regime can create fresh investment opportunities while supporting the continued growth of Kenya's real estate sector.
Gandhi described the enactment of the Finance Act 2026 as a turning point for Kenya's capital markets, saying the reforms were achieved after years of engagement between the association, regulators, policymakers, professional advisers and other stakeholders.
"The passage of the Finance Act 2026 and the restoration of Stamp Duty and Capital Gains Tax exemptions for qualifying property transfers into REITs mark a landmark achievement for Kenya's capital markets."
He said the reforms were the outcome of sustained efforts to create a more supportive environment for the growth of REITs in Kenya.
According to Gandhi, attention should now move from advocating for reforms to putting them into practice by supporting the establishment of more REITs, attracting both institutional and retail investors and increasing participation in the market.
"The successful passage of these reforms is not the end of the journey—it is the beginning of a new chapter," he said.
He added that with major structural barriers now removed, the sector has an opportunity to accelerate the creation of new REITs, improve market liquidity and unlock investment across housing, logistics, healthcare, hospitality and commercial real estate.
The association reaffirmed its commitment to supporting the long-term growth of Kenya's REIT market, expressing confidence that the revised tax framework will strengthen investor confidence and increase capital formation across the country's real estate sector.
RAK also thanked its partners and other stakeholders for contributing to discussions on the future of REITs, tax policy and investment, saying continued collaboration will be key to ensuring the Finance Act 2026 reforms translate into sustained growth for Kenya's property investment market.