Kenyans and non Kenyan can own property in any part if the
country.
Property can be acquired on freehold or leasehold basis.
A freehold title gives the owner absolute proprietorship over
the land in perpetuity.
While Leasehold property is held on a government lease for a
specified period, usually 50 or 99 years. At the end of this period, the
landowner applies for an extension of the lease, which is usually granted. The
extension process takes approximately 6 months.
Both freehold and leasehold land is subject to local authority
rates which is usually a fraction of the unimproved site value. However,
leasehold is further subject to Land Rent, based on the size of the land.
The institutions for Registering Property in Kenya have a
mandate to enforce and implement various aspects of the land and real property
laws. They include;
- Ministry of
Lands, Responsible for development of national land Policy
- Lands Registry,
mandated to register property in Kenya
- Nairobi City
Council, or Local Authority
·
Land Control Boards
For most properties, payment is in form of a 10% deposit and the
balance within 60-90 days. Financing for purchase of a property can be
obtained from Banks, Building Societies or Mortgage Companies in Kenya.
The easiest way to buy property for non-residents is to appoint
a lawyer in Kenya who can act on your behalf. The lawyer will arrange to have
the sale agreement signed by you and will also undertake to get the title of
the property transferred into your name.
Steps to follow when buying property
|
TRANSACTION
|
WHO
PAYS?
|
|
4% Stamp Duty for Draft
Transfer
|
Buyer
|
|
1.5% Legal Fees
|
Buyer
|
|
Banker’s Check
Charge KES 600 (US$8)
|
Buyer
|
|
Registration KES 250
(US$ 3)
|
Buyer
|
|
1.25% Agent’s
Commission
|
Seller
|
|
Cost
Paid by Buyer
|
5.51%
|
|
Cost
Paid By Seller
|
1.25%
|
|
RoundTrip
Transaction Cost
|
6.76 %
|
Non residents can buy ‘commercial class’ land in Kenya. This
type of land is for income or revenue-making purposes. Non residents are
allowed to acquire this and build on it.
‘Agricultural land’ or farm lands cannot be acquired by non
residents. ‘Agricultural land’ is usually owned by indigenous people. If
purchase is made through a company – the majority of which must be Kenyan-owned
– then it is allowed. The land will be bought under the company’s name.
Sufficient property to let on short to long term basis is available
at very competitive rates. This can be accessed through a number of property
management companies.
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