Two Rivers SEZ to Raise Sh5 Billion for New 22-Storey Office Tower

The Two Rivers International Finance and Innovation Centre (TRIFIC) has announced plans to raise approximately Sh5 billion through a property investment fund. The capital, equivalent to $37.3 million, is intended to facilitate the acquisition of the developer's existing flagship building and provide the necessary financing for a new 22-storey office tower.
 
This capital raise will be executed through an Income Real Estate Investment Trust (I-REIT). According to the developer, the structure of the I-REIT is designed to be debt-free. This ensures that rental income generated from the assets is not utilized for debt servicing but is instead directed toward investor payouts. A significant feature of this investment vehicle is that rental income is collected in US dollars, a move intended to insulate investors against the volatility of the Kenyan shilling.

TRIFIC SEZ Chief Executive Brenda Mbathi confirmed that the current North Tower is fully occupied. The proceeds from the I-REIT will allow the firm to buy out this tower and roll over the remaining capital to begin work on the next phase of the development. The proposed 22-storey building will include 21 floors of dedicated office space, a roof level, and parking facilities for more than 700 vehicles across the basement and ground floors.

The move comes as the Nairobi Grade A office market shows renewed activity. Data from property consultancy Knight Frank indicates that occupancy rates for prime office spaces reached 77.7 per cent by mid-2025, up from 72.7 per cent at the beginning of that year. This demand is largely driven by firms seeking modern, high-specification office environments that meet international standards.

The 64-acre TRIFIC Special Economic Zone was licensed in June 2023 and has since sought to establish itself as a specialized hub for global service and technology firms. The North Tower currently serves a variety of export-oriented businesses, including financial services, ICT, and professional advisory firms. Its anchor tenant, Teleperformance, occupies 45 per cent of the building under a long-term lease agreement.

This is not the first instance of major capital injection for the Two Rivers precinct. In 2024, the SEZ secured approximately Sh6.1 billion in equity and mezzanine financing from Vantage Capital for office space expansion. Historically, the project has attracted significant funding, including a Sh19.99 billion commitment in 2015 from a consortium including AVIC International, ICDC, and Co-operative Bank. Centum also previously reduced its stake in the broader development by ceding 42 per cent to various investors in a deal valued at Sh6 billion.

The Special Economic Zone status offers simplified regulatory support and modern infrastructure, which the management believes will position the development as a primary location for business process outsourcing and global innovation. By utilizing the I-REIT model, TRIFIC aims to provide a low-risk entry point for investors while maintaining the momentum of its physical expansion.