Kenya affordable housing REIT draws global backing for youth-focused rentals

Friday 28th November 2025

by inAfrika Newsroom

A new Kenya affordable housing REIT is attracting global investors as Acorn Holdings scales its build-to-rent strategy. The developer recently secured approval from Kenya’s Capital Markets Authority for a development REIT backed by KSh2.2 billion.

The vehicle will finance student and young-professional housing in Nairobi and other fast-growing cities. The Private Infrastructure Development Group, through its companies, has anchored the Kenya affordable housing REIT to crowd in more capital.

Kenya faces a large housing gap, especially for low- and middle-income tenants. Demand is strongest among young urban residents who need safe, well-located units at modest rents. Yet high land prices, slow approvals and expensive finance have held back supply.

Across Africa, analysts estimate that real estate could reach US$17.6 trillion in value by 2025. Most of that sits in high-end stock, while affordable rentals remain scarce. Consequently, investors now explore new tools that can bridge this gap.

Blended structures like the Kenya affordable housing REIT try to do exactly that. They mix patient capital and risk-sharing instruments so that developers can build at scale while keeping rents within reach.

Next steps

Over the next year, Acorn plans to move several projects from pipeline to construction using funds from the Kenya affordable housing REIT. Priority sites lie near universities, transport hubs and major job centres.

Regulators will follow how the REIT performs and whether it attracts pension funds and other long-term investors. A strong track record could encourage more issuers to list affordable housing vehicles on the Nairobi Securities Exchange.

Meanwhile, policymakers continue to adjust land, planning and tax rules. Faster approvals and stable regulations would help similar funds grow.

Why it matters for Kenya affordable housing REIT

The Kenya affordable housing REIT offers a concrete test of whether capital-markets tools can narrow Africa’s housing deficit. If the model delivers decent, well-managed units at scale, it could change how investors view mid-market rental housing.

For young tenants, the gains would show up in daily life: safer buildings, shorter commutes and more predictable rents. For cities, purpose-built rentals can support better planning, denser development and stronger local economies.