It might be the pride that comes with owning property but despite several managed investment products in the market, it appears Kenyans prefer to take matters in to their own hands. Many are not willing to let go of their property to be managed by regulated real estate companies even when they are likely to get more returns than when they run it themselves. This is one of the factors that has led to slow uptake of real estate investment trusts (Reits), despite being regulated by the Capital Markets Authority. “For pension schemes, I think it is just an investment profile so they prefer holding on the land,” said Ruth Okal, the ILAM Fahari I-Reit asset manager. If investors would trust their finances and land with regulated companies, it would be easier for the companies to raise capital for development, which will ensure better returns, she says.

Source: Standard Digital July 14, 2021 21:00 UTC