Debunking The Tokenization Myth: The Case For Stronger REIT Investment In Kenya

On September 3, 2025, the Business Daily published an article titled “Tokenizing property: New dawn for real estate and capital markets” ( https://www.businessdailyafrica.com/bd/opinion-analysis/columnists/tokenising-property-new-dawn-for-real-estate-capital-markets-5179442 ), which attempted, albeit horribly, to make the case for tokenization being the silver bullet to catalyze real estate development.

Tokenization is the process of converting an asset into digital bits, also known as tokens, that run on a blockchain network. For example, consider a title deed or a logbook in digital form that can be traded like shares. It’s more complex, but you get the meaning.

The author first painted a gloomy picture for the Real Estate Investment Trusts (REIT) industry, citing numerous reasons for the low investment in these assets.

Let us debunk this article point by point.

1. REIT Retail Investment

The author states that REITs have fallen short on their promise to usher in a wave of retail investors due to high entry-level costs and the complex nature of the asset classes.

We can agree that the minimum KES 5 million investment threshold discourages potential investors, but there are firms such as Acorn that have found an innovative way to overcome this hurdle.

Acorn, the developers of the Qwetu and Qejani student residences, have enabled over 7,300 investors, many of them retail, to invest in the Acorn Student Accommodation Income and Development REITs through the Vuka platform.

Vuka is a digital platform that enables retail investors to buy and sell units in their REIT with an entry level of KES 5,000, far below the KES 5 million entry level.

2. KES 100 million capital requirement

The author additionally laments that the KES 100 million minimum capital requirement for other players in REITs, such as trustees, acts as a gatekeeping mechanism, limiting participation for deep-pocketed players such as banks.

But let us be honest, how many developers have taken investors’ funds and collapsed before projects were completed? Nairobi is a graveyard with incomplete projects, especially off-plan ones, that have wrecked misery on contractors, employees, consultants, and investors.

This is why regulators put such a high entry level so that the wheat is separated from the chaff and, in the process, protect all stakeholders.

3. Complex Structures

On this, the author states that the layers of legal and financial intermediaries discourage smaller investors. It is unclear who the small investor is, but either way, this argument is misguided.

The tight regulation is meant to protect investors by ensuring only genuine investors participate in the sector. Would you invest in a bank not regulated by the Central Bank of Kenya or go to a hospital not licensed by the health regulator?

4. Low Public Awareness

Finally, the author states that there is limited public awareness of REITs and that fewer Kenyans trust them as an investment without citing any report or survey.

If there is limited public awareness on REITs and less trust, why are more companies seeking regulatory approval to participate in this asset class, with the latest being Mi Vida Homes?

Also, if Kenyans have limited awareness of REITs, then they have lower awareness of tokenization, distributed ledgers, or virtual assets and other similar lingo.

In short, REITs are gaining popularity amongst all investors, albeit gradually, and the so-called tokenization is mere hype.

To get started and to learn more about investing in REITs through Vuka, click on the link below: https://vuka.co.ke/

Read Also: Are REITs A Smarter Way to Invest in Real Estate In Kenya?