The Kenya Revenue Authority (KRA) has confirmed that investors will not be taxed on earnings from the country’s first development Reit (D-Reit) set to put up Greenwood City in Meru County.
The Fusion Capital’s Sh2.3 billion Fusion Capital D-Reit sale opened two weeks ago at the Nairobi Securities Exchange.
It is offering 100 million units at Sh23 each whose sale closes on July 15. Cash raised through the offer will develop the upscale shopping mall, office block and apartments.
“The exemption showcases the government’s willingness to champion the Reit model in this market; without a doubt it will drive many investors to buy into the Reit,” said Fusion Capital Group chief executive Luke Kinoti.
This is the second tax exemption after the Stanlib I-Reit issued under the government’s policy of deepening the capital markets and enabling financial inclusion.
“These attractive regulations will entice more investors to float Reits for different projects across the country thus enabling many Kenyans to own a slice of the lucrative real estate market,” said Mr Kinoti.
A D-Reit is a listed collective investment instrument allowing investors to pool capital to develop large-scale real-estate properties.