Kenya’s affordable housing market is set for a significant boost after Acorn Holdings Limited received regulatory approval to launch a Build-to-Rent Development Real Estate Investment Trust (ABTR D-REIT), supported by KES 2.2 billion (USD 17 million) in new investment from global and regional partners.
The Capital Markets Authority (CMA) approved the new REIT on Monday, paving the way for Acorn to scale its purpose-built rental developments tailored for young urban professionals, a demographic at the centre of Nairobi’s growing demand for secure, well-located and affordable accommodation.
The new investment vehicle expands Acorn’s push into the affordable housing space, a sector increasingly viewed as critical to unlocking productivity and improving living conditions for Kenya’s expanding youthful population.
Acorn’s Build-To-Rent D-REIT will enable investors to participate in large-scale, professionally managed rental housing projects across Nairobi. Funding for the new REIT includes KES 1.3 billion in equity from the Private Infrastructure Development Group (PIDG), KES 258 million from Shelter Afrique Development Bank, and KES 645 million from Acorn.
Stanbic Bank Kenya and SBG Securities served as the lead transaction advisers overseeing the structuring of the product.
Edward Kirathe, CEO of Acorn Holdings, described the approval as a “milestone” for the company and the Kenyan housing market.
“This REIT will initially focus on rental housing for young urbanites aged 20–30 who work in Nairobi’s formal and informal business hubs. For the first time, we are launching a REIT with upfront committed capital from institutional investors,” he said.
Kirathe added that the product demonstrates growing investor confidence in Kenya’s capital markets and in rental housing as a viable long-term asset class.
The development is designed to offer young professionals modern, secure and affordable homes located close to employment centres. Nairobi’s growing population of graduates, early-career employees, and entrepreneurs has struggled with access to safe and reasonably priced housing, a gap the REIT aims to fill.
Acorn says the new units will feature enhanced security systems, communal areas, and private spaces built with inclusivity in mind.
Special consideration has also been given to the needs of young female professionals and individuals living with disabilities, ensuring that safety, dignity, and comfort remain at the core of the housing design.
The buildings will be IFC EDGE-certified, a globally recognised standard for environmentally friendly, resource-efficient buildings.
PIDG, through its project development arm InfraCo, welcomed the approval as a critical step toward expanding affordable rental housing in Kenya.
Claire Jarratt, Head of Investment Management for InfraCo, said the initiative would help address the shortage of suitable homes and contribute to developing Kenya’s housing capital markets.
“Our partnership with Acorn delivers purpose-built, affordable housing for young urbanites. This REIT will not only enable individuals to live near work but also unlock further capital for city-wide housing,” she noted.
Shelter Afrique Development Bank Managing Director Thierno-Habib Hann described the agreement as “timely and vital,” adding that Nairobi’s youthful demographic requires innovative housing solutions to support economic participation.
“Too many young professionals continue to struggle to find affordable, secure homes. When a young professional has access to accommodation near their workplace, they are better positioned to succeed and contribute to society,” Hann said.
The new REIT builds on Acorn’s leadership in Kenya’s housing market, following earlier student-accommodation REITs that have raised over USD 31 million from the capital markets since 2019.
Acorn has pioneered innovative financing models including green bonds and earlier REIT products, earning recognition for sustainability, transparency, and long-term impact.
Its Qwetu and Qejani brands have redefined student housing in East Africa, offering a template for similar purpose-built developments for young workers.
Shelter Afrique and PIDG highlighted Acorn’s REIT as an example of the type of private-sector innovation needed across the continent, especially as African cities face rising demand for climate-resilient, inclusive and affordable housing.
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