Trustees act as the custodians for the Reit (a stake in a property) unitholders by making sure the Reit manager invests prudently in exchange for a fee.
KCB has received a licence to act as a Real Estate Investment Trust (Reit) trustee, raising the bank’s potential to earn non-interest income.
Industry regulator Capital Markets Authority (CMA) said the bank had met all the legal requirements to operate as a trustee.
Trustees act as the custodians for the Reit (a stake in a property) unitholders by making sure the Reit manager invests prudently in exchange for a fee.
This is the second licence for Kenya’s largest bank by assets from the CMA. Nearly a year ago, KCB received approval to operate an investment banking unit.
“Besides the Reits Trustee licence, KCB, a public listed company has a subsidiary, KCB Capital Ltd, operating as an investment bank,” said CMA in a statement.
The industry regulator has issued licences to six Reit managers and two other Reit trustees.
The regulator has introduced Reits to make it easier for small investors to participate in the real-estate industry and for developers to raise capital.
