CAN FOREIGNERS OWN PROPERTY IN KENYA?
CAN FOREIGNERS OWN PROPERTY IN KENYA?
Yes! But with a few important legal rules.
Kenya is open to foreign investors, and you can own property here. The key difference ? Foreigners are allowed to own leasehold property– not freehold .This means that if you are buying land or property as a foreigner, your title will be leasehold.
Leasehold = maximum of 99 years ( renewable, with conditions).
Freehold= for Kenyan citizens only.
Curious about buying property in Kenya as a foreigner? This quick guide offers clear answers on hidden restrictions, tax implications , including the unique situation of mixed-nationality couples, and the tax facts no one tells you.
Let’s make your Kenyan property journey clear and confident.
What happens when a foreigner’s 99-year lease expires?
When a 99 year lease ends, you have the right to renew it at the office of the National Land Commission- but the renewal is not automatic.
If the land is needed by the government (national or county) for public use, it may not be renewed.
What types of property can foreigners generally buy in Kenya?
You can own various types of property – all under leasehold:
Residential Property: apartments, homes, villas;
Commercial Property: offices, shops/ business premises, malls; and
Industrial Property: Warehouses, Factories.
Beachfront; but with extra due diligence!
Can a Mixed- Nationality Couple own property together ?What interest in land can they acquire?
Yes, if one spouse is Kenyan and the other is a foreigner, they can jointly buy leasehold property. But NOT agricultural land. The Land Control Act prohibits foreigners from owning agricultural land in Kenya- even through marriage.
Can foreign companies buy property in Kenya?
Yes. A foreign company can buy leasehold property.
To legally own freehold property, a company with at least 51% Kenyan- owned. Our team of Commercial Lawyers can walk you through setting up the right vehicle.
Can foreigners inherit land in Kenya?
Yes. A foreigner can inherit land in Kenya, but if inherited as freehold, it automatically becomes leasehold during the succession process. The process must follow the laid out procedures, including obtaining a Grant of Probate or Letters of Administration.
Can foreigners acquire beachfront property in Kenya?
Yes. Foreigners can acquire beachfront properties. Most beach front properties are already on leasehold tenure, making them available for foreign buyers. That said, prospective buyers are strongly advised to undertake thorough due diligence and engage experienced legal counsel. Our real estate team is well-versed in guiding local and international clients through such transactions with clarity and confidence.
Notably, previous attempts to impose restrictions on non-citizen transactions involving beachfront properties, were nullified by the courts due to lack of proper legal backing from the Cabinet Secretary.
What are the tax implications for foreigners acquiring property in Kenya?
The taxes are the same as those applicable to Kenyan Citizens:
Stamp duty
4% of the property’s market value for urban/ municipal land ;
2% of the property’s market value for agricultural/rural land.( subject to Land Control Board approval)
Common Pitfalls to avoid
In our experience, in handling both sale/ purchase transactions, litigation , here are a few key risks to look out for:
Fake titles and fraud sellers including misrepresented boundaries.
Community or ancestral land being disguised as private land.
Conclusion
These risks make careful verification and legal support essential throughout the process. Our team provides end to end support, from due diligence to structuring the transaction, managing stamp duty, and ensuring proper registration.
If you’re considering a property investment, we’re here to help you navigate it with confidence.
Authors:
Valentine Magato – Conveyancing Lawyer
Reviewed by- Waithira Mugo
Contact us : info@wmcoadvocates.co.ke
Disclaimer –This Article is in general terms for guidance only and is not intended to substitute professional advice. While due diligence has been undertaken, in ensuring the accuracy of information provided herein, Waithira M. & Co. Advocates is not responsible for any actions , omissions undertaken as a result of the same.
