Kenya’s First Green Dollar I-REIT Opens for Investment

The Two Rivers International Finance and Innovation Centre (TRIFIC) opened a Sh4.8 billion green, US dollar denominated Income Real Estate Investment Trust on 13 May 2026, the first instrument of its kind in Kenya. The offer closes on 12 June 2026. The I-REIT is expected to list on the Nairobi Securities Exchange on 23 June 2026. The minimum investment is Sh129,000 ($1,000), open to both retail and institutional investors.

What the Offer Covers

The I-REIT comprises 29.83 million units priced at USD 1 each, representing 80 percent of the total 37.29 million units, with the promoter retaining the remaining 20 percent through property contribution. Proceeds fund the acquisition of the TRIFIC North Tower and the development of additional green-certified commercial towers within the Special Economic Zone.

The I-REIT targets an 8 percent net USD dividend yield, approximately 8.4 percent pre-tax, and a 10 percent annual total return from dividends and net asset value growth. Distributions are expected semi-annually, with a target payout of over 95 percent of income, against the 80 percent regulatory minimum set by the Capital Markets Authority. 

Under CMA regulations, at least 80 percent of net profits must reach investors as tax-exempt dividends.

Proceeds are structured as follows: 96.22 percent goes toward seed property acquisition, 2.50 percent covers transaction costs, and 1.27 percent covers stamp duty and regulatory fees.

The North Tower

The seed asset is the TRIFIC North Tower, a 16,213 square metre green-certified building with an 87-year residual lease term, a purchase price of USD 35.88 million, and 92 percent current occupancy. Tenants include business process outsourcing firms, technology companies, shared service centres, and professional services firms serving clients internationally. All leases are denominated in US dollars with annual escalations built in. X

TRIFIC CEO Brenda Mbathi said the service support model embedded in the lease structure — covering regulatory facilitation, compliance, utilities, talent sourcing, and digital connectivity — creates a recurring income stream for investors.

The SEZ and Tax Structure

TRIFIC has operated under its SEZ licence since June 2023 and carries the designation of a Project of Strategic National Importance under Kenya’s Vision 2030 development agenda.

Tenant businesses inside the zone pay a corporate tax rate of 10 percent for their first 10 years of operation, benefit from VAT zero-rating, and qualify for exemptions on import and stamp duties. These incentives govern the income base from which investor returns are drawn.

Second Tower and External Funding

A second tower within the SEZ is in planning, driven by demand from service-exporting businesses. Future acquisitions under the REIT may include USD-yielding SEZ offices, logistics parks, light industrial parks, and data centres.

In June 2024, TRIFIC secured $47.5 million in mezzanine funding from Vantage Capital, Africa’s largest mezzanine fund manager, to finance the construction of additional office towers and fit-out of the existing North Tower. That was Vantage Capital’s 37th investment across the continent.

Kenya’s REITs Market

The REITs Association of Kenya reports that total market capitalisation grew from Sh9.8 billion in 2021 to Sh24.6 billion in early 2026. In March 2026, the Africa Logistics Properties I-REIT listed on the NSE as East Africa’s first industrial REIT and the first US dollar-denominated security ever traded on the exchange. It raised Sh3.8 billion at a 98.5 percent subscription rate. A subsequent commitment from InfraCo Africa pushed the overall subscription to 115.17 percent.

The Central Bank of Kenya cut its benchmark policy rate to 8.75 percent as of February 2026. That has reduced returns on government securities and pushed investors to consider alternatives including REITs.

Risks

The ILAM Fahari I-REIT, one of the earliest Kenyan REITs, traded at a 45 percent loss from its Sh20 inception price and moved from the Main Investment Market to the Unquoted Securities Platform following a restructuring. Most property developers in Kenya continue to fund development through bank loans rather than capital markets.

The TRIFIC I-REIT is closed-ended. Investor exits come through NSE trading rather than redemption by the REIT manager. Liquidity after listing depends on secondary market activity. 

Key Dates

KCB Investment Bank acts as transaction advisor, sponsoring broker, and lead placing agent. The full prospectus is available through the offer’s official channels.