Kenya’s real estate sector continued to register notable developments during the week, particularly in green financing, infrastructure funding models, and capital markets activity. At the same time, evolving digital financial technologies are beginning to present new possibilities for the future of property transactions and investment.
Green Bond Issuance by KMRC
A key highlight during the week was the announcement by the Kenya Mortgage Refinance Company (KMRC) of plans to issue a green bond in April.
The bond aims to raise capital to support the refinancing of affordable and environmentally sustainable housing projects, aligning with the broader push toward green and climate-conscious development.
This follows strong investor appetite demonstrated in KMRC’s previous bond issuance, which was oversubscribed by approximately 480%, raising KSh 1.4 billion. The upcoming issuance is therefore expected to attract significant market interest.
The move signals growing momentum in green finance within Kenya’s real estate sector, particularly in the affordable housing segment.
New Infrastructure Financing Model for JKIA Expansion
Infrastructure development remained a key theme, with the government confirming that the expansion of Jomo Kenyatta International Airport (JKIA) will be the first project financed under the proposed National Infrastructure Fund.
The Fund, established under the National Infrastructure Fund Bill, is designed to provide a new financing framework for large-scale national infrastructure projects.
This development follows the cancellation of a previous public-private partnership arrangement with the Adani Group, which faced scrutiny over transparency and procurement concerns.
The shift toward a dedicated infrastructure fund could play a critical role in accelerating the delivery of key national projects while improving governance and financing structures.
Performance of REITs on the Unquoted Securities Platform
Activity in the REIT market remained steady during the week, with mixed performance across instruments.
Acorn D-REIT traded at KSh 27.4, representing a 33.4% gain from its inception price
Acorn I-REIT traded at KSh 23.2, reflecting a 14.5% gain
ILAM Fahari I-REIT traded at KSh 11.0, representing a 45.0% decline from its initial price
Trading volumes remained relatively strong, with 13.4 million units traded for the D-REIT and 42.0 million units for the I-REIT.
The divergence in performance highlights varying investor confidence across REIT structures, with newer, development-focused instruments outperforming more established offerings.
Focus of the Week: Digital Finance and the Emergence of Stablecoins
Kenya continues to position itself as one of Africa’s leading digital finance markets, largely driven by the widespread adoption of mobile money platforms such as M-Pesa and Airtel Money.
These platforms have significantly improved financial inclusion, enabling seamless transactions for individuals and businesses across the country.
As the digital financial ecosystem evolves, new technologies are emerging that could further reshape the landscape. One such innovation is stablecoins.
Stablecoins are digital assets designed to maintain a stable value by being pegged to an underlying asset, typically a fiat currency such as the US dollar. By combining blockchain efficiency, transparency, and price stability, they present several potential use cases:
A medium of exchange for digital transactions
A store of value in volatile markets
A settlement mechanism for cross-border payments
In the context of real estate, stablecoins could, in the future, influence:
Property transaction settlement
Cross-border property investment
Tokenization of real estate assets
Conclusion
Overall, the week’s developments highlight three key trends shaping Kenya’s real estate sector:
The rise of green financing in housing
The evolution of infrastructure funding models
The growing influence of digital financial innovation
Together, these factors point to a market that is becoming increasingly integrated, technology-driven, and investment-oriented.
