Developer Acorn, known for Qwetu and Qejani projects, has received approval from the Capital Markets Authority (CMA) to launch a Build-To-Rent Development REIT (D-REIT) valued at KSh 2.2 billion. The move reinforces the company’s focus on affordable rental housing for Nairobi’s young workforce.
The licence represents another milestone for Acorn, which has grown from student housing into East Africa’s largest purpose-built rental operator, currently managing over 10,500 beds with nearly 9,000 more in development. The new D-REIT will primarily serve urban professionals aged 20–30 working in Nairobi’s key employment centres.
Acorn operates a vertically integrated model covering development, operations, asset management, and capital structuring. The Build-To-Rent D-REIT is expected to draw additional private and institutional investment as initial projects are completed, forming a long-term rental platform that complements its existing student accommodation portfolio.
The REIT is launching with committed institutional capital of:
-
KSh 1.29Bn (US$ 10Mn) from the Private Infrastructure Development Group via InfraCo.
-
KSh 258.48Mn (US$ 2Mn) from Shelter Afrique Development Bank.
-
KSh 645Mn (US$ 5Mn) from Acorn itself.
Funds will finance purpose-built rental units aligned with the standards of Acorn’s student housing properties. PIDG noted that Acorn’s proven track record in student accommodation underpins the D-REIT’s viability, while Shelter Afrique highlighted the importance of delivering affordable, well-located units for Nairobi’s entry-level employees and young entrepreneurs.
Also Read: Kenyan Businessman Ashok Doshi Drops Lawsuit Against CBK Over Imperial Bank Liquidation
Expansion of Acorn’s Model
Since 2001, Acorn has delivered over 50 projects worth more than US$ 550Mn. In 2019, it issued Africa’s first green housing bond, listed on the Nairobi Securities Exchange and cross-listed in London. In 2021, it launched two student housing REITs that have raised over US$ 31.36Mn (KSh 4.05Bn) to date.
The new D-REIT expands this model to a broader rental segment, with deliberate design considerations for safety and convenience, particularly for young female professionals, while also incorporating accessibility features for people with disabilities. Stanbic Bank Kenya and SBG Securities are serving as lead transaction advisors.
