Centum plans Kenya’s first dollar-denominated REIT worth $37M, boosting foreign investor confidence and deepening the country’s real estate market.

Kenya’s Centum Unit to Launch Country’s First Dollar-Denominated REIT

Kenya’s capital markets are on the brink of a historic milestone as Centum Investment Company Plc prepares to introduce the country’s first dollar-denominated real estate investment trust (REIT). The move underscores a growing appetite among international investors for Kenyan real estate and signals the country’s gradual transition toward globally aligned capital-market products.

A Landmark Move by Centum

According to Bloomberg News, Centum’s subsidiary — Two Rivers International Finance & Innovation Centre (Trific) — plans to issue a US $37 million REIT denominated in US dollars before the end of 2025.

The product will be the first of its kind in Kenya, marking a new phase of diversification within the Nairobi capital market. Centum’s Group Chief Executive James Mworia said the dollar-priced REIT aims to attract both local and international investors seeking predictable returns and protection from local-currency depreciation.

The instrument is expected to deliver an 8 percent annual return and will require a minimum investment of US $1,000, making it accessible to a wide range of investors.

Why This REIT Matters for Kenya

The launch of a dollar-priced REIT is more than a financial innovation — it’s a statement about Kenya’s evolving capital market. For years, Kenya’s real estate and investment sectors have been dominated by shilling-denominated instruments, which often deter foreign investors due to currency-exchange risk.

By pricing in US dollars, Centum’s REIT offers a hedge against shilling depreciation and provides an opportunity for investors to earn stable, foreign-currency returns from local assets. This could help deepen investor confidence, enhance market liquidity, and broaden the pool of foreign capital flowing into Kenya.

The initiative also aligns with the Capital Markets Authority (CMA) reforms that aim to expand alternative investment products, such as REITs, to support Kenya’s Vision 2030 development goals.

Key Features of Centum’s Dollar-REIT

The REIT will acquire a fully leased, revenue-generating commercial property located within Two Rivers Development — one of East Africa’s largest mixed-use projects, owned by Centum.

Market and Regulatory Implications

The launch of this REIT represents a breakthrough for Kenya’s capital-market innovation. However, it must first secure regulatory approval from the CMA, which has historically exercised caution in licensing new investment products to protect investors.

Experts believe this product could open the door for other foreign-currency-denominated instruments, helping diversify the Nairobi Securities Exchange (NSE) portfolio. In the long term, it could position Kenya as a preferred investment hub for East African property funds.

Still, challenges remain. Market analysts warn that property-valuation transparency, tenant creditworthiness, and macroeconomic headwinds — including inflation and high interest rates — could influence performance. Nevertheless, the REIT’s USD pricing significantly cushions investors from local-currency volatility.

Broader Economic Context

Kenya’s property market continues to attract institutional capital, thanks to rapid urbanization and rising demand for Grade-A commercial space. The country’s infrastructure development under projects such as Vision 2030’s Big Four Agenda and Nairobi’s affordable housing program has further boosted investor confidence.

According to data from Knight Frank Kenya, Nairobi remains one of Africa’s top destinations for high-yield commercial properties, with rental yields averaging 8 – 10 percent in prime zones. Centum’s dollar REIT is expected to capitalize on this demand while offering global investors an easy entry into Kenya’s real-estate market without direct currency exposure.

What It Means for Investors

For foreign investors, this REIT provides a stable entry point into an emerging market with high potential for real-asset growth. By earning returns in US dollars, investors mitigate the impact of local-currency depreciation — a major concern for global portfolios in frontier markets.

For local investors, the product encourages a new savings and investment culture that bridges domestic and global financial systems. As Centum sets the precedent, other developers may follow suit, introducing hybrid and offshore-linked instruments.

This will likely enhance transparency, improve reporting standards, and attract more institutional investors — such as pension funds and insurance companies — into Kenya’s real-estate sector.

A Step Toward Market Maturity

Kenya’s financial system has undergone steady reform since the 1990s, but REIT adoption has lagged due to low investor awareness and regulatory complexity. Centum’s initiative could shift perceptions by demonstrating how professionally managed, dollar-based instruments can deliver returns comparable to — or even surpassing — traditional real-estate projects.

As the Nairobi Securities Exchange seeks to boost listings and diversify revenue streams, such innovations could inject new vitality into Kenya’s investment landscape.

Conclusion

Centum Investment Company’s plan to introduce Kenya’s first dollar-denominated REIT marks a defining moment for the country’s capital markets. It reflects both confidence in Kenya’s economic fundamentals and a strategic move to align with international investment trends.

Once approved and launched, this US $37 million REIT could attract global investors seeking stable, dollar-linked returns in Africa’s most dynamic property market. More importantly, it signals Kenya’s readiness to compete in the international investment arena — one dollar at a time.

Ethiopia’s central bank raises capital and forex rules to strengthen banks and attract investors seeking stable frontier markets.

Ethiopia Tightens Banking Rules for Stability

By Charles Wachira | November 10, 2025

Ethiopia’s central bank has rolled out sweeping reforms to strengthen its banking sector and restore investor confidence. The National Bank of Ethiopia (NBE) announced new rules that raise capital requirements and limit banks’ exposure to foreign exchange risks.

In October,NBE proposed a new directive limiting foreign ownership in domestic banks to 49%.

The move aims to align Ethiopia’s financial system with global standards. It also signals a push to restore market confidence after years of inflation, currency shortages, and liquidity pressure.

According to StockMarket.et, the reforms target stronger balance sheets and more disciplined currency management. Analysts say this is one of the most decisive steps by the regulator in recent years.

New Capital and FX Requirements

Banks must now meet higher minimum paid-up capital levels, consistent with international benchmarks. The NBE has also introduced a foreign exchange exposure cap of ±18% of Tier 1 capital per day.

This means banks can no longer hold large foreign currency positions beyond that limit. The goal is to control speculative trading and protect the banking system from shocks in the currency market.

“We want to build a safer and more transparent banking system,” said an NBE official. “Capital adequacy and currency discipline are essential for long-term stability.”

Impact on Local Banks

The reforms come at a time when many Ethiopian banks are expanding aggressively. Yet several remain below global capital thresholds.

The Commercial Bank of Ethiopia (CBE) still dominates the market, but private players like Awash Bank, Dashen Bank, and Nib International Bank have been catching up fast. They now face pressure to raise new capital or explore mergers to meet the new requirements.

According to analysts at Cepheus Capital, these changes mark the start of a new phase in Ethiopia’s financial liberalization. The government is preparing to open the banking sector to foreign investors, a move that could attract regional and international capital.

Building Investor Confidence

Ethiopia, home to more than 120 million people, has long been seen as a potential investment destination in East Africa. Yet regulatory uncertainty and currency volatility have discouraged many global investors.

The new rules aim to change that perception. They are part of a wider plan to build transparency, predictability, and resilience into the financial system.

Economist Dr. Tsedale Mebratu of Addis Ababa University believes this policy shift could mark a turning point. “The reforms strengthen trust and transparency,” she said. “But smaller banks may struggle to meet compliance costs without raising extra capital.”

Addressing Foreign Exchange Risks

Ethiopia’s currency, the birr, has been under constant pressure. The country has faced chronic foreign exchange shortages that have disrupted imports and debt payments.

By limiting exposure to ±18% of Tier 1 capital, the NBE hopes to reduce speculative positions in the FX market. This step mirrors similar reforms taken by the Central Bank of Kenya (CBK) and the Bank of Ghana, which tightened rules after currency turbulence in recent years.

If properly implemented, the policy could help stabilize the birr and reassure global lenders like the World Bank and the International Monetary Fund (IMF).

Part of a Broader Economic Reform Agenda

The changes form part of Ethiopia’s wider economic transformation plan under Prime Minister Abiy Ahmed. His administration has been liberalizing strategic sectors such as telecommunications, logistics, and finance to attract private investment.

One of the most notable milestones was the 2023 entry of Safaricom Ethiopia, a subsidiary of Safaricom PLC (Kenya). That deal marked one of the largest foreign investments in Ethiopia’s history.

The government hopes the same success can be replicated in banking, insurance, and other services. The NBE’s new regulations, therefore, set the groundwork for a more modern, globally integrated financial system.

Analysts’ Global Perspective

International markets have taken note of Ethiopia’s reforms. Investors tracking African frontier economies say the new measures show commitment to transparency and policy discipline.

However, they also caution that effective enforcement will be key. “Ethiopia’s challenge isn’t introducing new rules — it’s enforcing them fairly,” said Richard Manson, Africa analyst at Frontier Advisory Group in London. “If done right, these reforms could put Ethiopia closer to Kenya and Nigeria in investor confidence.”

The Road Ahead

The tightening of banking rules represents more than a regulatory change. It reflects Ethiopia’s determination to build credibility in global financial markets.

For the NBE, success will depend on consistent enforcement and collaboration with commercial banks. For investors, the reforms offer a clearer signal that Ethiopia is serious about modernizing its economy.

In the long term, these moves could strengthen the country’s financial stability and help it emerge as a regional financial hub in the Horn of Africa.

Kenya’s Treasury fires Consolidated Bank’s board and CEO, signalling tougher financial governance and oversight reforms.

Kenya Fires Consolidated Bank Board in Governance Shake-Up

November 10, 2025—Kenya’s financial sector grabbed global attention after Treasury Cabinet Secretary John Mbadi dismissed the entire board and CEO of Consolidated Bank of Kenya. The move triggered regulatory intervention from the Central Bank of Kenya (CBK). It also raised concerns about political influence in the banking sector.

The decision came after Treasury rejected the board’s plan to renew CEO Sam Muturi’s contract. Muturi had just delivered the state-owned lenders’ first profit in 15 years. On October 3, Mbadi revoked the appointments of three directors who supported Muturi. He then installed Dr. Murage Njeru, a University of Nairobi lecturer, as acting CEO. CBK immediately rebuked the move.

“Institutions must ensure that no person is appointed or elected as a director or senior officer unless the Central Bank has certified them,”
— Timothy Kimutai, Deputy Director of Bank Supervision, CBK

Regulatory Clash and Political Overtones

CBK protested that Dr. Njeru had not undergone the mandatory “fit and proper” assessment under Section 9A of the Banking Act.

Dr. Njeru had recently stepped down from the Mbeere North parliamentary by-election. He stepped aside in favor of a United Democratic Alliance (UDA) candidate. The party is led by President William Ruto. Meanwhile, his brother, Charles Njagagua, who chaired the bank, was also removed. The institution was left without a functioning board.

Founded in 1989 through a merger of nine troubled lenders, Consolidated Bank has long reflected Kenya’s delicate balance between commercial independence and political oversight.

“This development signals heightened regulatory scrutiny and a possible shift in how Kenya enforces governance in publicly owned banks,” said an analyst at Sterling Capital Ltd.
“But it also raises concerns about board autonomy and the predictability of oversight.”

CBK’s Balancing Act

CBK now faces a tough task. It must enforce prudential rules while managing political pressure. The regulator has questioned the legality of some Treasury appointments. One example is Jane Njogu, a Treasury representative whose second term allegedly lacked CBK approval.

The Bank insists that no senior officer should assume office without clearance. This protects depositors and maintains market confidence. Analysts say CBK’s firm stance reassures investors that supervision standards remain intact despite political challenges.

Global Implications

The dispute has drawn international attention. It mirrors governance challenges across emerging markets. For investors and multilateral lenders, the situation raises questions about policy consistency and institutional independence. These are key factors when assessing country risk.

“What’s happening at Consolidated Bank is not just a domestic issue; it’s a test of Kenya’s commitment to corporate governance reforms,”
— Dr. Emmanuel Okoth, Economist, University of Nairobi

As Nairobi aims to become a regional financial hub, such governance disputes could hurt investor confidence. The success of Kenya Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA) depends on a stable and credible banking system.

Legal Fallout and Leadership Vacuum

Ousted CEO Sam Muturi filed a petition at the Employment and Labour Relations Court. He seeks reinstatement or KSh76 million in compensation. Muturi argues the Treasury overstepped its authority. The case could set a landmark precedent on executive interference in bank governance.

The bank now faces a leadership vacuum. Six of eleven senior roles are held in acting capacity. This includes heads of legal, risk, finance, and retail divisions. Analysts warn that instability could reverse the gains achieved under Muturi, just as the bank was starting to recover.

What Lies Ahead

The shake-up highlights Kenya’s ongoing struggle to balance government oversight with institutional independence. Treasury’s push to restructure state-owned enterprises may increase accountability. But it also exposes weak points in governance frameworks.

For investors and policymakers in East Africa, the Consolidated Bank saga sends a clear message: transparency, consistency, and regulatory autonomy are essential for sustaining confidence in Kenya’s banking future.

Bottom Line

The ouster of Consolidated Bank’s leadership is more than a boardroom reshuffle. It is a litmus test for Kenya’s governance credibility. How quickly the State, CBK, and judiciary resolve this standoff will determine whether reforms strengthen or strain investor faith in one of Africa’s most dynamic banking markets.

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