to be concerned about several barriers. Regional
trade policies also work against foreign retailers that
seek to rely on imports. Preferential tariffs on goods
coming from the
Common Market for Eastern and Southern
Africa or the East African Community, as well as
government protection of local producers of red
meat, dairy products and eggs, mean that imported
food products from further afield often struggle to
be competitive.
Commercial sector
Kenya’s office sector is becoming saturated. It is
expected that office supply will exceed demand by
2016. The current average rent for office space is
approximately US$20/m2 per month. This rental
may begin to fall as property owners begin to
compete for tenants.
While the Real Estate Investment Trust (REIT)
structure was introduced in Kenya in 2013, there are
currently no active REITs in the Kenyan market.
A number of industry players are in the process
of seeking approval from the Capital Markets
www.reimag.co.za
Authority (CMA) for the purpose of listing
REITs. The CMA has approved and licensed five
REIT Managers; Stanlib Kenya Limited, Fusion
Investment Management Limited , CIC Asset
Management Limited, Centum Asset Managers
Limited and UAP Investments Limited.
KENYA AT A GLANCE
Income level: Lower income
GDP: US$55.24 billion (2013)
GDP Growth: 5.7% (2013)
Population: 45.55 million (2014)
Inflation: 6.02% (2014)
Political stability: -1.15 (2013)
Corruption Perception Index: 25 (2014)
RESOURCES
French, I, ‘Real Estate: Building the Future of
Africa’ (2015), PriceWaterhouseCoopers
Offshore Handbook 2016
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