The Debate On Land vs Stocks — But REITs May Be the Real Winner

A clip of Kiharu legislator Ndindi Nyoro on why land is a bad investment has gone viral. In it, he decries the morbid obsession Kenyans have for owning land, especially small portions scattered across the country, as opposed to liquid stocks.

Ndindi’s main argument is that stocks appreciate faster, higher, and are liquid. You can sell stocks and be paid tomorrow, unlike selling land, which can take months or even years.

Furthermore, land is an asset that only appreciates on paper, no dividends, and of a leasehold, it’s actually more expensive since you have to pay annual rates.

All this may be true, especially at a time like now, when the Nairobi Securities Exchange is experiencing a bull run. Even the cryptocurrency market is experiencing the same run as all coins are at historic highs.

But what Ndindi Nyoro conveniently left out as he praised the NSE’s capacity to print wealth is that a fall always follows every bull run. It is only a matter of time.

In 2023, the Nairobi Securities Exchange (NSE) endured a prolonged bear run. The NSE 20 Share Index hit a record low of 1,461.07 points in October, a slump so sharp that global media labeled Kenya the “world’s worst-performing stock market” at the time.

The impact was painful—some stocks shed as much as a third of their value. Imagine the dent this would cause if your retirement savings or your child’s education fund had been tied up in such counters.

This raises a critical question: how can investors strike the right balance between risk and return? One compelling answer lies in Real Estate Investment Trusts (REITs).

REITs offer the best of both worlds. They provide access to property investments within a regulated framework, while delivering returns through capital gains and regular income in the form of interim and annual dividends. In uncertain markets, they can be a smart way to diversify and protect your financial future.

For example, let us look at Acorn’s property portfolio, housed under the Acorn Student Accommodation Income REIT (ASA I-RET), which has significantly increased since inception. The ASA I-REIT 2025-Semi-Annual-Report shows that the portfolio had a combined Net Asset Value (NAV) of KSh8.62 billion as of June 2025, up from KSh3.34 billion in early 2015—a 2.6-fold increase, outperforming Nairobi’s broader property market.

Investors in Acorns development equivalent, dubbed the Acorn Student Accommodation Development REIT (ASA D-RET), have also seen their value increase.

The net asset value at entry was KES 4.21 billion, which equated to a NAV per unit of KES 20.00. As of the date of this report, the net asset value had increased to KES 7.72 billion, translating to a NAV per unit of KES 27.36, representing a 37% increase from launch in February 2021.

This is evidence that REITs combine the best of both worlds, consistent returns regardless of how the NSE performs, which shields your hard-earned investments. To learn more, go to Vuka and find out how you can invest in REITs.

Vuka is Kenya’s first regulated investment platform that allows retail investors to invest in the ASA I-REIT, effectively allowing them to own a stake in Qwetu and Qejani student residences, in essence, becoming landlords.

For more details: https://vuka.co.ke/

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