How to Convert Land from Absolute Ownership (Freehold) to Land for Lease (Leasehold) in Kenya

Converting freehold land to lease in Kenya involves several steps as outlined below:

Step 1: Check Your Eligibility

Confirm if your land qualifies. For foreigners, it’s mandatory. For citizens, check if it’s in an urban area under the 2024 amendments. Do a land search on the Ardhi Sasa platform for KSh 550 to verify your freehold title.

Step 2: Get Notifications and Apply

The NLC might notify you if conversion is required. If not, apply for the NLC or a county government position. Use forms like LA22 or LA23 for related processes. Include your ID, title deed, and proof of ownership.

Step 3: Obtain Approvals

Engage a physical planner for a brief. Obtain county approvals, such as development permission (PPA2). For land to be leased in Kenya, public participation may be required, such as posting notices in newspapers.

4. Surrender the Title

Hand over your original freehold title to the NLC. They review it within 90 days.

5. Pay Fees and Valuations

Costs include application fees (approximately KSh 10,000), stamp duty (ranging from 2% to 4% of the value), and valuation fees (KSh 15,000 to KSh 50,000). The total can be 2-5% of the land value.

6. Receive New Lease

The NLC issues a new 99-year lease certificate. Register it on Ardhi Sasa.

This process takes 6-12 months. For land to lease in Kenya, particularly in places like Nairobi, expect delays due to the high volume – over 10,000 properties in Nairobi are at risk in 2026.

If you’re looking for land to lease in Kenya, notwithstanding the locality, the steps are similar. A land lease agreement in Kenya is key to formalizing it.

 

 

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c/o Ardhisasa KE

Lease preparation: New Application (Freehold To Leasehold Conversion)

What are the Lease Preparation?

A land lease is an agreement that permits the tenant to use a piece of land owned by the landlord in exchange for rent. Land leases work similar to how traditional property leases operate, tenants can enter into both residential and commercial agreements work.

What is the Conversion of Freehold to Leasehold?

This is a process where any proprietor(s) holding a freehold interest in land surrenders it to the Government in exchange for the leasehold interest.

Any foreigner who held a freehold interest in land as at August 2010 is automatically deemed to be leasehold by operation of law. This is in relation to a directive for the foreigners to surrender such titles to the Land office for conversion from freehold to leasehold not exceeding 99 years.

However, any Kenyan citizen(s) who wants to transition from freehold to leasehold interest in land is allowed to apply for this process.

Who are the actors involved?

Applicant

Is the individual who starts the application who could be the registered proprietor or a professional who has an account on Ardhisasa and has upgraded their respective profession.

Proprietor:

The registered proprietor is required to draft a request letter directed to the Director Land Administration for conversion from freehold to leasehold.

Advocate:

Required for the purpose of attesting the execution of the new lease.

What are the requirements?

Surrender Reference Number: This number is provided after completion of the Surrender of Title (LRA 65A).

Copy of Freehold Title (PDF).

What are the payments required?

New Grant Fees.