Discover the regulations and opportunities for owning land as a foreigner in Kenya. Your guide to land ownership.
The thriving Kenyan real estate market consistently lures local and also foreign investors with its robust growth and substantial returns.
Foreign land ownership in Kenya was prohibited until the 2010 constitution allowed foreigners to own land.
However, after the promulgation, foreigners can now comfortably invest and own real estate in Kenya. The Land Registration Act 2012 allows non-Kenyan citizens to own property with a few restrictions. This can either be an individual or a company.
This is provided a reliever to these foreign investors who can now tap into the growth of real estate in Kenya. Currently, foreign investors are investing in holiday homes, office complexes, commercial facilities etc.
What type of land can foreigners own in Kenya?
No Kenyan citizens can only own land on the basis of leasehold tenure. Their lease does not exceed 99 years.
The government retains authority over property development and also lease terms in this leasehold ownership arrangement.
Foreigners using properties for profit may receive property rights, with the government’s authority to reclaim and reassign.
Various ways in which a foreigner can own land in Kenya
- In Person – This is where a foreigner owns land under his/her individual their name.
- In Trust – This is where a different person or an entity holds property for the benefit of a foreigner.
- As a Company – where a foreign company is allowed to own property under its own name.
Limits to property ownership by a foreigner in Kenya
Kenyan authorities grant Special Gazette Notice permission for non-Kenyan citizens to acquire beachfront properties and agricultural land.
How a non-Kenyan Citizen can conduct due diligence on property in Kenya| Owning Land as a Foreigner in Kenya
Whether you are a Kenyan Citizen or not, due diligence is an important step before investing in property. Always ensure you view the property on offer, conduct a title deed search and fill all the land ownership documents.
As a foreigner, request for a copy of the leasehold title deed and conduct a search before investing. If you’re a foreigner interested in buying land in Kenya, our blog lists important considerations to remember.
Laws and Regulations
Land ownership in Kenya is governed by the Constitution, the Land Act, and other laws and regulations. It is important to be familiar with these laws and regulations before buying land.
Restrictions
Kenyan authorities allow foreign land purchases but restrict in strategic areas (coast, borders) for national security.
Consent of Transfer
Foreigners must secure a “consent to transfer” certificate from Kenya’s Ministry of Lands before purchasing land. This certificate confirms that the government has reviewed the proposed transaction and has no objections to it.
Due Diligence
Prior to purchase, thoroughly check land for liens, encumbrances, and disputes to ensure a clean title. This may involve a title search, a survey, and also other investigations.
Purchase Process
The purchase process includes a deposit, sale agreement signing, and property transfer registration at the Ministry of Lands.
Building Permits
Foreigners may require permits for commercial/residential land development. Foreigners buying land in Kenya face complexity; professionals ensure legal compliance, a must for smooth transactions.
In conclusion, you can involve a conveyancing lawyer who will help you throughout the process and help you in signing of agreements and transfer forms. A lawyer is also helpful in protecting your interests and mitigates risks.
