Africa Logistics Properties to Launch First Dollar-Denominated REIT After KES 4.46 Billion Raise
By Chemtai Kirui | Nairobi | March 6, 2026
NAIROBI — Africa Logistics Properties is preparing to list the Nairobi Securities Exchange’s first U.S. dollar-denominated security, a move aimed at insulating foreign investors from the currency swings that have rattled Kenya’s markets in recent years.
The company’s industrial real estate investment trust — a REIT — was 115% subscribed, raising KES 4.46 billion ($34.55 million) in a restricted offer, according to a statement released Friday.
That figure includes a KES 646 million ($5 million) anchor investment from the Private Infrastructure Development Group through its subsidiary InfraCo Africa.
The units are scheduled to begin trading on the exchange’s restricted board next week.
For the NSE, the listing lands at a sensitive moment. Foreign participation in Kenyan equities has thinned as the shilling lurched through one of its most volatile periods in decades. The currency slid to a record KES 161 to the dollar in early 2024 before recovering to around KES 129 in recent weeks.
Pricing the security in dollars sidesteps what many investors describe as exit risk — the danger that currency losses erase returns when funds are taken out of the country.
Some analysts are already contrasting the deal with the KES 112.3 billion ($870 million) initial public offering of Kenya Pipeline Company that closed on March 4. While the KPC share sale drew more than 70,000 retail investors, ALP’s REIT is aimed squarely at institutional capital.
The minimum investment is KES 12.92 million ($100,000), effectively limiting participation to pension funds, family offices and international investors, including backers associated with the U.K.-supported MOBILIST program.
The proceeds will go toward expanding ALP’s warehouse portfolio at Tatu City and Tilisi, two of Nairobi’s fast-growing logistics hubs.
Demand for modern industrial space has been climbing steadily. Knight Frank estimates occupancy for institutional-grade warehouses in the region reached about 83% in the first half of 2025, driven by growth in e-commerce and cold-chain logistics.
That stands in stark contrast to Nairobi’s office market. A 2025 report by Cytonn Investments shows vacancy rates in districts such as Upperhill above 40%, while the central business district remains above 30%.
ALP’s warehouses are already leased in dollar-pegged contracts, meaning the REIT largely formalizes a pricing structure that has long existed in the private market. That sets it apart from vehicles such as Acorn I‑REIT, which focuses on student housing and remains denominated in shillings.
The strong demand may signal renewed interest in Kenya’s REIT sector. The country’s first listed trust, ILAM Fahari I‑REIT, delisted its main-board units in 2024 after years of thin trading and a persistent gap between its market price and net asset value.
ALP is targeting a dollar-denominated internal rate of return of roughly 12%, putting it in the same conversation as high-yielding U.S. Treasuries. Whether the fund attracts steady trading once it begins changing hands will be closely watched.
The deal was managed by Dyer & Blair Investment Bank. Co‑operative Bank of Kenya serves as trustee, while Deloitte acted as reporting accountant.
