ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
73. Distribution of realized capital gains by an I-REIT
Edition: 2023-10-06 · In force
73. Distribution of realized capital gains by an I-REIT
(1)A REIT manager or trustee on the recommendation of the REIT manager may, and subject to the provisions of the scheme documents, distribute realized capital gains.(2)Any realized capital gains may be retained and invested in income producing real estate:Provided that any realized capital gains which have not been invested within a period of two years from the date of realization shall be distributed to REIT securities holders within two months of the second year of such realization.(3)Failure by the trustee to make the minimum distribution specified in paragraph (2) shall not constitute an offence.(4)Despite paragraph (3), where the trustee or REIT manager fails to make a distribution under paragraph (2)—(a)the I-REIT may cease to be classified as a real estate investment trust scheme for taxation purposes;(b)subject to the scheme documents, the REIT securities holders may institute a cause of action against the trustee or the REIT manager; and(c)the Authority may revoke the authorization issued by it under these Regulations.