can u shed more light on the topic. is this a copy paste note or can u guide us to a detailed info?

@kyukkamba this is not a copy paste note,it is merely a way of saying that at least our capital markets are moving towards the right direction as far as offering alrenatives for investors and investees.

@Zakumi please read the link below..

Business Daily: - Money Markets |Real estate trusts set to become ...

i have not heard of any institution practicing either equity or mortgage reit?

@emlyn ngwiri thank you...though that link is old...but thanks again...quite an interesting discussion you've started here.

The important xteristics of reits are that

1)OWNERSHIP TEST---more than 80% of the reits need to be owned by outside investors (like the same way unit trusts have the units and each member has units in proportion to their investment)implying that the remainder can be owned internally by th staff who work there.

2)ASSET TEST---90% of the reits must be invested in real eatate the remaider could be in an equity reit. take for examlple a reit called Unity Real Estate investment trust invests in the purchase of yaya center building by purchase of 60% of the ownership, 20% in a mortgage reit, 10% in a comingled reit and 10% can be invested in say the equity market or a blend of other investments

3)INCOME TEST--- reits income must be from either rent, or mortgage form of investments and not from investment in the equity market.

4 DISTRIBUTION TEST---Reits income must flow to the shareholders from sources of the reits investments no other form say bonds or from other avenues of profits, may be distributed to the shareholders.

dont you think from the above analogy that this will be agreat form of investment for the future in kenya?

@Zakumi remember, there seems to be a construction boom in kenya, keeping factors such as political climate and economic stability it will definately be a very good way to invest.
my rule is 'invest in appreciating assets and not in depreciating assets' appreciatin assets are :land, buildings, stocks and bonds (in some cases)a car is never an investment because its value depreciates with time! and the depreciating rate is quite high.

in essence Reits provide a means of developing a country because the mor agressive people want to invest tin reits, the more jobs will be filled---less crime ---more disposable income---greater demand for goods and services--- increase of poduction----the list is endless.

kenya can become a very good investment opportunity for outside investors which will mean that people will bring foreign capital necessary for international financial transactions and as a form of investment diversification.

well, things are about to change, with the new constitution the courts in the respective counties will handle the issue to the bone.

remember, the ministries will be run like private entities and i tell you things will be thick for those who think that the old way of doing things is the right way. take for example the the ministry for information anc communication being run by ...say the current safaricom ceo? things would really change or the land ministry being run by a lands expert fom the bureau of lands experts things will change.

remember the time kenya had only kbc to entertain us?