Your Key to Property Ownership: FAQs for Non-Citizens (Foreigners) in Kenya

Your Key to Property Ownership: FAQs for Non-Citizens (Foreigners) in Kenya

Q1: What kind of property is available for ownership in Kenya?

Non-citizens can own property in Kenya.

Kenya’s real estate market offers diverse property options such as stand-alone houses, apartments, townhouses, commercial buildings, beach properties and vacant land. These options vary in size, location, style, amenities and price range, providing a wide range of choices to suit your preferences and needs.

As a foreigner, you can buy, rent or lease the property.

Q2: Are there limitations to property ownership?

Yes, there are.

The Constitution of Kenya, under Article 65 and Section 107 (3) of the Land Registration Act, restricts foreigners’ ownership to a leasehold tenure of 99 years. This means that non-citizens can only own property for 99 years.

A company can own property in its name as a corporate body. However, a private company with foreign shareholders can only own property on a leasehold basis as it is not permitted to have freehold interest in land.

The Land Control Act also limits foreigners’ ownership of agricultural land.

Q3: I have identified a plot of land I wish to buy. Where do I start?

The purchase process is divided into pre-contractual, contractual and completion stages.

The precontractual stage begins with due diligence to establish the registered owner, the actual size of the land, and any encumbrances to the property. You will require the services of an advocate in Kenya to assist you in conducting pre-contract inquiries and identify preliminary issues that touch on the physical condition of the land.

If you are satisfied with the due diligence results, you can proceed to the contractual stage.

During this stage, the vendor’s (seller’s) advocate and sends it to your advocate (purchaser’s advocate). Your advocate will review the agreement and make amendments or negotiate on your behalf, where necessary.

The completion stage is marked by a completion date on which the purchaser pays the entire purchase price balance. After this, the vendor provides the purchaser with the completion documents. The completion documents include the original Certificate of Title for the property, a duly executed transfer in favour of the purchaser, a valid Land Rates Clearance Certificate, the seller’s identity documents, and tax (PIN certificate).

Q4: What if I am outside the country? Can I still purchase land?

Yes, you can. Non-citizens (foreigners) may appoint an Advocate to handle the land transaction on their behalf.

Q5: I have identified an apartment/ townhouse/ maisonette/ flat/ villa/ office – What ownership options do I have?

You have the option to buy or lease it. In this context, there is a difference between purchasing the property under leasehold tenure and renting it from a private property owner.

A lease from a private property owner can be short-term, periodic, or long-term.

You also have the option to buy the property. Under these circumstances, you will buy the apartment/ townhouse/ maisonette/flat/villa/office under the Sectional Properties Act. Upon registration with the Land Registry, you get a sectional lease certificate running for ninety-nine years.