John Worth, Nareit executive vice president of research and investor outreach, participated in a high-level policy roundtable in Nairobi, Kenya, on Oct. 21, bringing together representatives of the Kenyan and Ugandan REIT communities and capital markets regulators from both countries.
Hosted by the REITs Association of Kenya (RAK), with Nareit serving as a knowledge partner, the roundtable aimed to inform regulators ahead of a planned review and revision of Kenya's REIT regulatory framework. Uganda is also considering reforms to its REIT framework.
Worth delivered a keynote address, "REIT Market Structure and Investment: Towards a State-of-the-Art REIT Model," examining how established REIT markets have evolved to accommodate different investment structures, investors, and property sectors while maintaining investor confidence.
The meeting brought together industry participants and regulators to examine barriers to REIT market development and identify opportunities to encourage investment.
Discussions focused on several aspects of Kenya's existing regulatory framework, including restrictions on corporate structures, foreign asset ownership, leverage limits, and requirements governing the types of assets REITs can hold.
Participants also considered potential changes to ownership requirements and minimum lease terms that could provide greater flexibility for REIT investments, including infrastructure assets.
Another central topic was attracting institutional investment. Participants examined how pension funds, insurers, and asset managers could increase their allocations to REITs, as well as the regulatory and market conditions necessary to support greater participation.
The roundtable also addressed the importance of transparency, standardized reporting, and valuation practices in building investor confidence. Discussions included the potential development of a Kenyan REIT index or benchmark to help investors evaluate opportunities.
Representatives of Kenya's regulatory authorities had an opportunity to respond to the issues raised and consider priorities for further review and consultation.
Worth concluded the event with a fireside chat alongside RAK Chairman Raghav Gandhi, reflecting on the day's discussions and lessons from other REIT markets.
Nareit's participation reflects its ongoing engagement with international REIT organizations and policymakers to share insights from established markets and support the development of REIT frameworks worldwide.