Centum to Launch First USD Real Estate Income Fund in Jan 2026

By Benadeta Mwaura - Reporter

Kenya, December 10 2025 - Centum has announced plans to issue a dollar denominated real estate income fund (IREIT) in January 2026, a first for Kenya’s property market. The company is targeting roughly Sh 4.78 billion (~US$ 37 million) in capital from the proposed IREIT, which is pending regulatory approval.

Proceeds from the issuance are earmarked for the development of green commercial property at the Two Rivers International Finance and Innovation Centre (TRIFIC) special economic zone in Nairobi. Centum says investors in the fund can expect returns of about 8% in US dollars, a structure meant to match the currency of the fund with that of rental returns.

This move aligns with Centum’s broader real estate strategy: under its “Real Estate” pillar, the firm aims to build investment grade assets of scale by acquiring land, master planning developments, raising third party capital, and then constructing and leasing or selling properties.

In previous years, Centum, through its subsidiary Centum Real Estate (Centum RE), secured funding from the International Finance Corporation (IFC) to build nearly 2,000 affordable and “green” homes at Two Rivers.

Despite macroeconomic headwinds and a dip in fair value gains on investment properties (which contributed to a 68.8 % drop in net profit in the year ended March 2025), Centum’s leadership appears confident, the dollar IREIT is a bet on stable foreign currency returns, possibly insulating investors from shilling depreciation and inflation concerns.

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Attractive to foreign investors & diaspora, A dollar denominated REIT can appeal to investors wary of local currency risk, offering returns in hard currency. Hedge against currency volatility, Matching asset cash flows and fund returns in dollars could protect both Centum and investors from exchange rate swings.

Liquidity & diversification, For Kenyan and regional investors used to equities or direct real estate ownership, this REIT offers a more liquid, professionally managed exposure to property. Signal for market innovation, If successful, the fund could pave the way for more foreign currency denominated real estate instruments in Kenya, potentially deepening the capital markets and attracting cross border capital.

Risks remain, Given recent property value corrections and economic headwinds, the success of this fund will depend on consistent leasing rates, occupancy, and demand for the “green commercial” properties being developed. The next steps for Centum’s dollar real estate income fund include securing regulatory approval from the relevant Kenyan capital markets and securities authorities. Approval is crucial before the fund can be formally offered to investors.

Investors will also be watching the timing and structure of the fund offer, including details on who can subscribe, whether retail, institutional, or foreign investors. How the fund is priced and marketed could influence uptake significantly. Finally, attention will turn to market reaction and post-launch performance. Key indicators include investor subscription levels in dollars versus Kenyan shillings, occupancy rates of the underlying properties, rental yields, dividend distributions, and the overall impact on Centum’s financial position.