ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
44. Eligibility for appointment as a trustee
Edition: 2023-10-06 · In force
44. Eligibility for appointment as a trustee
(1)A trustee shall be a company or a corporation incorporated or formed or established in Kenya which is—(b)a subsidiary of a bank; or(c)such other company or corporation as the Authority may license if the Authority is satisfied that the company or corporation has sufficient financial, technical and operational resources and experience necessary to enable it effectively conduct its business and carry out its obligations as a trustee of a real estate investment trust and real estate investment trust scheme.(2)A trustee shall—(a)be independent of the promoter, the REIT manager and any property manager, valuer or project manager certifier of the real estate investment trust scheme;(b)be licensed by the Authority as a REIT trustee;(c)be independently audited; and(d)have a minimum issued and paid-up capital and non-distributable capital reserves of at least one hundred million shillings.(3)Where the appointed trustee is the sole trustee and is not a trust corporation as defined under the Trustee Act (Cap. 167) the Authority may, at the request of the trustee and if required for the purposes of issuing a valid receipt for the proceeds of sale or other capital money arising under a disposition on trust for the sale of land as provided for under section 15 of the Trustee Act, appoint the REIT manager as a secondary disposition trustee for the purposes of enabling compliance with section 15 and with powers limited to those necessary to allow execution of documents and undertake any other matters for the purpose of compliance with section 15 of the Trustee Act.(4)Where the Authority appoints a person as a secondary disposition trustee under paragraph (3), that person may, if necessary, be registered as the co-owner as a second trustee and at the request of the trustee may execute any documentation as a second trustee.(5)The Authority may appoint the REIT manager to perform the limited role as a secondary disposition trustee despite the fact that the REIT manager is not eligible to be appointed as a trustee and is not licenced as a trustee.(6)In appointing the REIT manager under paragraph (5), the Authority may limit the powers of the secondary disposition trustee and impose such conditions as it may consider necessary.