Investors who buy the recently launched Fusion Capital D-REIT will not pay tax on their earnings. According to a letter from Kenya Revenue Authority (KRA) to Fusion Capital, Fusion Capital D-REIT had been evaluated and given a tax exemption certificate.
D-Reit sale opened two weeks ago at the Nairobi Securities Exchange. It is offering 100 million units at Sh23 each whose sale closes on July 15. Cash raised through the offer will develop the upscale shopping mall, office block and apartments.
Fusion Capital Group CEO, said: “Evidently, the exemption showcases the Government’s willingness to champion the REIT model in this market, without a doubt the exemption will drive many investors to buy into the REIT.”
The tax exemption order by the tax man is the second in the market after the Stanlib I-REIT and is in line with the Government’s policy of deepening the capital markets, and enabling financial inclusion for a wider segment of the population.