If you’ve just learned what REITs are, the next question usually comes naturally:

“So what do I actually do if I want to invest in one?”

This guide is written for that exact moment. It walks you through the real, practical steps of investing in a Kenyan REIT — from preparation to purchase, what happens after you buy, and how exits work in practice. No hype, no sales pitch, and no assumption that you already understand financial jargon.

If you want the full background on how REITs work, the different types, and the risks involved, start here:
Kenya REITs investment guide

What you need before you invest

Before you buy your first REIT unit, there are a few basics you need in place. These are not complicated, but they matter.

The first is a CDS account. This is the account that holds listed securities in Kenya, including REIT units. If a REIT is listed on the Nairobi Securities Exchange, ownership is recorded through the Central Depository System. You can open a CDS account through a licensed stockbroker, investment bank, or a digital investment platform that handles the process for you in the background. Opening a CDS account is usually free and only needs to be done once.

The second is deciding how you will access the REIT. Some investors prefer traditional brokers, others use digital platforms that simplify the experience. Both routes work. The important thing is understanding the fees involved and whether the platform gives you direct ownership of the units in your CDS account.

Finally, you should have a rough idea of how much you are willing to invest. Kenyan REITs are unit-based, meaning you buy a number of units at a given price. Beyond the unit price, factor in broker commissions and any ongoing management or trustee fees, which are usually deducted before distributions are paid.

Step one: decide what kind of REIT you want

Kenyan REITs generally fall into two broad categories, and choosing between them sets expectations early.

An Income REIT (I-REIT) focuses on rental income from completed properties. The main appeal is regular cash distributions, making this the more common entry point for beginners.

A Development REIT (D-REIT) focuses on developing properties before they generate income. Returns are more dependent on successful execution and future value, and income may be irregular or delayed.

If your goal is relatively predictable income rather than long-term development upside, an I-REIT is usually the more appropriate starting point.

Step two: choose how you will invest

There are several ways to access a Kenyan REIT, and the route you take affects convenience more than the underlying investment.

Some REITs are listed and traded, meaning you buy and sell units through the stock market much like shares. Others are accessed through public offers or subscriptions, where you apply during a defined offer period. There are also investment platforms that package the process into a simpler interface, sometimes at the cost of higher fees.

All three routes lead to exposure to the same underlying assets. What differs is how hands-on the process feels and how transparent the costs are.

Step three: read the offer document with intention

Every REIT comes with an offering or information memorandum. You do not need to read every page line by line, but you should not skip it entirely either.

Focus on understanding what properties the REIT owns or plans to develop, whether those properties are already generating income, and how much debt is involved. Pay attention to how distributions are calculated and how frequently they are expected to be paid. Also note the fees paid to the REIT manager and trustee, as these directly affect your net returns.

If something is unclear after reading the document, that is not a failure on your part. It is a signal to pause, ask questions, or wait.

Step four: do basic due diligence without overthinking it

You do not need complex spreadsheets to evaluate a REIT sensibly. At a basic level, you want to understand whether the assets are occupied, whether tenants are diversified, and whether debt levels are reasonable relative to rental income.

This stage is less about finding a perfect investment and more about avoiding obvious red flags. A REIT that is easy to understand is usually safer than one that relies on aggressive assumptions or vague projections.

Step five: place your investment

If the REIT is listed, investing usually involves placing a buy order through your broker or platform, similar to buying shares. If it is a public offer, you will submit an application and fund it within the offer window.

Once the transaction is processed, the REIT units appear in your CDS account. At that point, you are officially a REIT investor.

What happens after you invest

REIT returns typically come from two sources. The first is distributions, which are paid out from rental income after expenses. These are often paid semi-annually or annually and are usually credited directly to your bank account or platform wallet.

The second source of return is unit price movement. The market value of your units can rise or fall over time based on performance, interest rates, and investor sentiment.

It is important to understand that distributions are not guaranteed. They depend on occupancy, costs, and how the REIT is managed.

How exits work in practice

Exiting a REIT is not always instant, especially in the Kenyan market.

Listed REITs can be sold through the market, but liquidity depends on the availability of buyers. Unlisted or offer-based REITs may require waiting for a listing, a buy-back mechanism, or another exit event.

For this reason, REITs are best treated as medium- to long-term investments rather than short-term trades.

A simple way to sanity-check a REIT

If you want a mental checklist rather than a technical one, ask yourself a few straightforward questions. Do you understand how the REIT makes money? Are the properties real, occupied, and reasonably located? Does the fee structure make sense? Is the debt level explained clearly? Do you know how and when you can exit?

If you can answer those questions without guessing, you are probably evaluating the REIT at the right level.

Common mistakes to avoid

One common mistake is treating REIT yields as guaranteed income. Distributions depend on real-world performance and costs, not promises.

Another is ignoring fees and borrowing costs, which quietly reduce returns over time. Some investors also assume property values always rise, forgetting that vacancies, interest rates, and market cycles play a major role.

Being aware of these pitfalls already puts you ahead of many first-time investors.

Where to go next

If you want to understand how REITs fit alongside other investments, read:
REITs vs MMFs vs bonds vs equities in Kenya

If you want to go deeper into analysis, the next guide will cover how to evaluate a REIT before investing.

For the full background on REITs — definitions, structures, risks, and regulations — return to the main guide:
Kenya REITs investment guide