CMA draws up rules to allow trading of property shares on Nairobi bourse
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Real estate development on Waiyaki way in Nairobi. individual investors will be able to buy and sell shares of properties listed on the bourse. Picture: Anthony Kamau
Millions of Kenyans are to benefit from a major new investment window as the government moves to introduce regulations that will allow real estate to be traded at the Nairobi Stock Exchange.
The new rules, drafted by the Capital Markets Authority, are intended to open up investment in the usually capital-intensive large-scale commercial property sector to the general public.
They will, for the first time in Kenya, facilitate the “chopping up” of real estate into small units for people to trade in them.
Under the Capital Markets (Real Estate Investment Trusts) Regulations, 2009, individual investors will be able to buy and sell shares of properties listed on the bourse in much the same way people trade in stocks and shares of companies listed on the stock exchange.
