Business Type: REIT trustees are responsible under the trust deed for the safe custody of REIT assets for the benefit of unitholders as a whole. They oversee the activities of the REIT manager for compliance with the trust deed and regulatory requirements.
Licensing Requirements: Must provide certificate of incorporation, memorandum and articles of association, a business plan, unaudited accounts for the period ending not earlier than six months prior to application and audited accounts for the preceding two years (or for entities in existence for less than six months, an opening balance sheet and auditor’s certification of share capital).
Government Fees: Application fees are approximately KES 100,000 to KES 120,000, with annual renewal fees of around KES 70,000 to KES 90,000.
Timeline: The approval process typically takes 60 to 75 days, subject to the assessment of trustee qualifications and capacity to oversee REIT operations.
Limitations: REIT trustees must ensure compliance with trust deeds and regulations, monitor REIT manager activities, safeguard assets for unitholders, provide independent oversight, and report any breaches to the CMA.
Penalties: Violations may result in loss of approval to act as REIT trustee, financial penalties, investor claims, and prosecution for negligence or breach of fiduciary duties.
Enforcement: The CMA monitors trustee activities, reviews reports on REIT manager compliance, conducts audits, and ensures trustees fulfill their oversight responsibilities.