NAIROBI, KENYA – Acorn Holdings Ltd, a leading real estate developer, has secured regulatory approval to launch a Sh2.2 billion (USD $17 million) housing project targeting young urban professionals in Nairobi. The Capital Markets Authority (CMA) on Monday, November 17, 2025, greenlit the Acorn Build-to-Rent Development Real Estate Investment Trust (ABTR D-REIT), a specialized fund designed to channel investment into large-scale, purpose-built rental housing.

The initiative aims to address the acute shortage of quality, affordable rental homes for Nairobi's growing demographic of early-career workers, typically aged between 20 and 30. This group, which forms the backbone of the city's labour force, often finds itself priced out of accommodation that is safe, modern, and conveniently located near primary business districts like the CBD, Upper Hill, Westlands, and Industrial Area.

Strategic Investment to Bridge Housing Deficit

The Sh2.2 billion fund is anchored by significant commitments from three major institutional investors. The Private Infrastructure Development Group (PIDG), a global multilateral organization, is the lead investor, committing Sh1.3 billion (USD $10 million). Pan-African housing financier Shelter Afrique Development Bank has invested Sh258 million (USD $2 million), with Acorn Holdings contributing the remaining Sh645 million (USD $5 million). According to a statement from Acorn Group CEO Edward Kirathe on November 17, 2025, this upfront commitment of capital marks a significant vote of confidence in Kenya's capital markets and the build-to-rent model.

This project comes against the backdrop of Kenya's significant housing deficit. A 2023/24 report from the Kenya National Bureau of Statistics (KNBS) highlighted the urgent need for affordable housing, noting that a majority of households in Nairobi County reside in informal settlements. The government's Affordable Housing Programme aims to deliver 200,000 units annually to tackle this challenge. Acorn's private-sector-led initiative is poised to complement these efforts by focusing specifically on the rental market for young professionals who may not be ready for homeownership or mortgage financing.

Project Focus: Green, Safe, and Accessible Housing

The developments funded by the ABTR D-REIT will consist of studio and one-bedroom apartments. While the total number of units to be constructed with this initial funding and the projected monthly rental prices have not yet been publicly disclosed, Acorn has confirmed the units will cater to various income levels, including options for shared accommodation. FURTHER INVESTIGATION REQUIRED.

Following the successful blueprint of its purpose-built student accommodation (PBSA) brands, Qwetu and Qejani, all new properties will be designed to meet the International Finance Corporation's Excellence in Design for Greater Efficiencies (IFC EDGE) certification. This standard ensures resource-efficient building design, prioritizing energy and water savings, which translates to lower utility costs for tenants and enhanced climate resilience. Designs will also incorporate features to enhance safety and comfort, particularly for young female professionals, including secure access systems and well-lit common areas.

Understanding the D-REIT Model

A Development Real Estate Investment Trust (D-REIT) is a CMA-regulated investment vehicle that pools capital from multiple investors to fund the development and construction of real estate projects. Unlike an Income REIT (I-REIT) which holds and manages completed, income-generating properties, a D-REIT allows investors to participate in the development phase. Returns are typically generated from the capital gains realized when the completed properties are sold, often to an I-REIT, or to the open market. This structure provides a transparent and regulated channel for institutional capital to enter the property development sector, a key step in maturing Kenya's capital markets.

Economic and Social Implications for Kenya

The launch of the ABTR D-REIT is a significant development for both the real estate sector and the broader Kenyan economy. By providing high-quality, professionally managed rental housing, the project is expected to improve living standards and reduce commute times and costs for a vital segment of the workforce. This, in turn, can enhance productivity and overall economic well-being.

Furthermore, the construction phase is anticipated to create jobs. However, the wider context for the construction sector presents challenges. A recent Central Bank of Kenya survey from October 2025 indicated a bleak job creation outlook for the sector in the coming year, citing high costs and weak purchasing power. Despite this, government officials maintain that large-scale projects like the Affordable Housing Programme and initiatives like Acorn's are significant sources of employment. The long-term success of this D-REIT could unlock further institutional investment into Kenya's housing market, helping to scale up the supply of affordable homes and deepen the domestic capital markets.