The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations

12. Restriction on provision of loans or mortgages by REITS

Edition: 2023-10-06 · In force

12. Restriction on provision of loans or mortgages by REITS

(1)A D-REIT or an I-REIT shall not engage in the provision of mortgages or any other form of lending or debt finance.

(2)Despite paragraph (1) a D-REIT may, where the D-REIT has developed or constructed housing or other real estate assets, provide—

(a)a mortgage;

(b)other forms of secured loan;

(c)secured finance; or

(d)any form of lending or finance through a progressive purchase mechanism,

for the purpose of assisting a tenant or purchaser to acquire a housing from the D-REIT.

(3)A D-REIT that provides finance to a purchaser and subsequently converts to an I-REIT, may, as an I-REIT, continue to hold such loans or mortgages as assets but shall not engage in additional lending or provision of mortgages.

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Source: Kenya Law