Real Estate & Property

Yes, but only within specific constitutional limits.

Under Kenya’s 2010 Constitution, non-citizens can only hold land on a leasehold basis for up to 99 years. If a foreigner buys land with a Freehold title, it is automatically deemed converted to a 99-year leasehold upon transfer. Upon expiry, leaseholds are typically renewable subject to government approval.

Generally, no. The Land Control Act restricts the ownership of agricultural land to Kenyan citizens. However, a foreigner can acquire agricultural land if the President of Kenya grants an exemption through a gazette notice, which is very rare.

As a workaround, investors typically opt to convert the land use from “Agricultural” to “Commercial” or “Residential” (Change of User) before completing the transfer, or purchase through a public limited company, although this is highly scrutinised.

Yes. However, if the company is effectively controlled by non-citizens (for example, if foreign shareholders own more than a certain percentage), the law considers it a “non-citizen” company. This means the company can only hold 99-year Leasehold titles, even if it is registered in Kenya.

The standard Conveyancing Process involves the following steps:

(a) Reviewing and signing a Letter of Offer, which confirms the price and terms of the purchase.
(b) Legal Due Diligence Search of the property to verify the title at the Lands Registry/Ardhi Sasa, ensure no encumbrances (loans, court orders) exist on the title.
(c) Reviewing and signing a Sale Agreement (usually accompanied by a 10% deposit).
(d) Completion of the purchase, which involves payment of the balance and signing the transfer forms.
(e) Registration of the transfer which involves assessment and payment of Stamp duty, and lodging documents to register the property in the buyer’s name.

In Kenya, cases involving fraudulent title deeds and multiple allocations are rampant. At the very least, an “Official Search” should be conducted. We recommend conducting a Historical Search (green card review) and visiting the site physically with a surveyor to verify the boundaries and check for squatters.

Ardhi Sasa is the government’s digital land information management system, mandatory for transactions in Nairobi (and expanding counties).

To register an individual account on Ardhi Sasa, you typically need a Kenyan ID or a valid Alien ID (issued to residents). Foreigners without residency often cannot access the system personally. They must transact through a registered Kenyan Advocate or appoint a holder of a Power of Attorney who has system access.

Yes. You cannot complete a property transfer without a valid KRA PIN (Tax ID). The KRA iTax system generates the Stamp Duty payment slip using the buyer’s PIN. We assist non-resident buyers in obtaining a Non-Resident Individual KRA PIN. This does not automatically make you a tax resident, but it is required for the transaction.

Yes, but there are specific requirements. Under Anti-Money Laundering (AML) laws, banks require proof of economic ties to Kenya, evidence of a Work, Residency, or Investor permit, and an Alien ID for a foreigner to open a bank account in Kenya.

Stamp Duty is payable by the Buyer: a rate of 4% of the property’s value applies for land or property located within Municipalities or Cities (such as Nairobi or Mombasa), while a rate of 2% applies for land or property in rural areas.

The additional costs a buyer should be aware of include:

• Legal Fees – Regulated by the Advocates Remuneration Order (typically 1-2% of property value).
• Registration Charges – Nominal government fees for filing documents.
• Valuation Fees – Payable to facilitate the assessment of the property for Stamp Duty purposes.

The Seller must pay Capital Gains Tax (currently 15%) on any net gain/profit from the sale. As the Buyer, you are not responsible for paying this tax, but you should make sure the Seller pays it before the property transfer is completed.

Under the Matrimonial Property Act, if a property is considered a “matrimonial home,” it cannot be sold without the consent of the registered owner’s spouse.

Even if only the husband’s name appears on the title deed, the wife has the right to file a Caveat or take legal action to cancel the sale if she did not give her consent. We always require a sworn Spousal Consent Affidavit or a general affidavit confirming that the seller is unmarried to help protect your ownership rights from potential family disputes.

If you are buying land outside a municipality (e.g., in Nanyuki, Naivasha, or Kilifi) that is classified as Agricultural, the sale must be approved by the local Land Control Board. The Board typically meets once a month. Both the Buyer (or their representative) and the Seller must appear in person to get “Consent to Transfer.” Without this consent, the sale is null and void.

Buying an apartment that is not yet built (i.e., off-plan) carries certain risks, especially if the developer faces financial difficulties or encounters legal challenges, particularly concerning the land title.

Potential buyers should verify that the developer is transferring a valid Sectional Title (Certificate of Title) and not outdated long-term sub-leases. It is also advisable to confirm whether the land is encumbered by a bank charge. In case of developer default, the bank may proceed to auction the land and your incomplete unit unless a Partial Discharge has been issued specifically for your unit.

Yes. Each title deed specifies a particular “User” category, such as Agricultural, Residential, or Commercial. It is important to note that constructing a factory on land designated for “Residential One’ is prohibited. A formal Change of User application must be submitted to the County Government prior to any construction. Failure to comply may result in demolition orders.