CMA Licenses NCBA Bank, VCG Asset as REIT Trustee, Fund Manager

The Capital Markets Authority (CMA) has licensed NCBA Bank Kenya PLC to operate as a Real Estate Investment Trust (REIT) Trustee.

According to CMA, the issuance of the license is in line with the Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations, 2013; the Capital Markets (Corporate Governance) (Market Intermediaries) Regulations, 2011; and any other applicable Regulations.

“The Authority remains committed to supporting the National Government’s Affordable Housing agenda through facilitating the uptake of REITs, an innovative capital markets product,” said CMA Chief Executive Officer (CEO) Wyckliffe Shamiah.

“NCBA Bank Kenya PLC is expected to support investments in the real estate sector, contributing to the growth of the economy and the Affordable Housing Initiative,” added Shamiah.

CMA boss further emphasized the importance of REITs as a capital market product that not only provides an investment opportunity for Kenyans but also serves as a catalyst for the development of affordable housing projects.

CMA also granted VCG Asset Management Limited a fund manager’s license under the provisions of the Capital Markets Act Cap 485 A, of the laws of Kenya and its associated regulations.

This signifies a significant milestone for VCG Asset Management Limited in the financial industry, bringing the number of fund managers licensed by CMA to 41.

A fund manager is a manager of a collective investment scheme (such as a unit trust), a registered venture capital company or an investment adviser who manages a portfolio of securities more than an amount prescribed by the Authority from time to time.

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