Can Foreigners Buy Land in Kenya?

In Kenya, foreigners can own land, but under a leasehold system, not freehold, with a maximum duration of 99 years. They cannot own agricultural land directly, except through a Kenyan-incorporated company and with approval from the Land Control Board.

Kenya’s land ownership laws come from the Constitution of Kenya (2010), the Land Act (2012), and other statutes, such as the Land Registration Act (2012). These laws regulate land tenure and transactions, including those involving foreigners.

Foreigners can buy land in Kenya, but they face specific restrictions. Article 65 of the Constitution limits foreign ownership to leasehold land for up to 99 years. Foreigners cannot own freehold land, but they may lease land for extended periods. 

• Leasehold Tenure:

Foreigners can hold land on a leasehold basis, which means they have the right to use the land for a set period (up to 99 years) and pay rent to the landowner (the lessor). 

• No Freehold Ownership:

Foreigners cannot own land outright, meaning they don't have the absolute right to own the land for perpetuity. 

• Agricultural Land Restrictions:

Foreigners are generally barred from directly owning agricultural land, unless they do so through a Kenyan-incorporated company. This means a foreign individual or company would need to be registered in Kenya as a company to own agricultural land, and the transaction would still require approval from the Land Control Board. 

• Leasehold Limits:

The maximum lease term for foreign ownership is 99 years, and the lease is renewable for a similar term, with the lessor having first priority. 

• Land Ownership Limits:

There are limitations on how much land a foreigner can own, including a limit of 100 acres outside of Special Economic Zones (SEZs). 

• Need for Approval:

Foreign land acquisitions require approval from the National Land Commission (NLC), ensuring compliance with Kenyan laws. 

• Land Use Regulations:

Foreigners must ensure their land use aligns with local zoning regulations and obtain any necessary permits for specific uses. 

 

The process of acquisition of title deed from inherited unregistered/unallocated land

 What is a Confirmation of Grant?

A confirmation of grant is a legal document issued by the court in a succession process, confirming who the legal heirs of a deceased person's estate are.

It authorizes the distribution of the estate, including land, to the rightful beneficiaries.

After the succession process, and if the land has no title deed, the following steps should be taken:

1️⃣ Conduct a Land Search at the Lands Registry

Check whether the land is registered under any previous system (e.g., Green Card, Registry Index Map [RIM], or Land Reference Number [LRN]).

If no records exist, the land may still be under customary ownership
 or an old land allocation system.

2️⃣ Seek Surveyor Assistance to Establish Boundaries

A survey must be done to officially map the land and assign it a proper reference for registration.

The local land control board or adjudication office may assist in cases of ancestral or community land.

3️⃣ Apply for a Title Deed Through Adjudication or Registration
If the land was never formally registered, the heirs named in the confirmation of grant must apply to have the land registered under their names.

This can be done through the Ministry of Lands or County Land Boards.

4️⃣ Transfer of Land to Beneficiaries

Once the land is officially registered, the heirs named in the confirmation of grant can apply for title deeds under their names.
If they wish to sell, the title must first be processed before any transaction can be completed.

🚨 Risks of Buying Land Based Only on a Confirmation of Grant

🔴 No proof of land ownership – Without a title, verification becomes difficult.

🔴 Land disputes – Other family members may contest the inheritance, leading to court battles.

🔴 Government reclamation – If the land is unregistered, it may be classified as public land.

🔴 Difficulty in obtaining financing – Banks require a title deed for loans or land transfers.

📌 Final Advice

DO NOT buy land only based on a confirmation of grant without ensuring the title deed process has been completed.

If you are inheriting the land, make sure you follow due process to register the land and get a title deed before making any transactions.

Credits: NS 

Legal Review: How is an intestate estate distributed in cases where the deceased had no spouse(s) or children?

Section 39 of the Act provides that where the deceased is neither survived by a spouse nor children, his/her net intestate estate will devolve upon his/her blood relatives in the following order: father, or if dead; mother, or if dead; siblings and any of their children in equal shares, or if dead; half-siblings and any of their children in equal shares, or if none; any other relatives up to the sixth degree of consanguinity.

It is important to note, however, that section 39 of the Act is among the provisions that were recently declared unconstitutional in the case of Ripples International v Attorney General & another; FIDA (Interested Party) (Constitutional Petition E017 of 2021) [2022] KEHC 13210 (KLR) (29 September 2022) (Judgment) for being discriminatory on the basis of gender.

The process of Creating of a Sectional development

• A sectional plan describing two or more units is prepared by a surveyor from a building plan approved by the county government. This could be a private surveyor. In preparing the sectional plan, the surveyor will require a land search, construction permit and the floor plans. Further, the physical structures must have been erected on the land.
• The application for registration of the sectional plan is lodged at the land registry for registration. The Registry Index Map will be amended upon registration.
• The application to register a sectional plan is accompanied by an application to incorporate a management corporation. The management corporation consists of the unit owners. A certificate of registration of the management corporation will be issued to the applicant.
• Once the sectional plan is registered, the land registrar is required to submit the registered plan to the county government for apportionment of rates within 21 days.

Legal Review: The Sectional Properties Act 2020 ("Act") & Its benefits

The Sectional Properties Act 2020 ("Act") was enacted in 2020 to align with the provisions of the Constitution of Kenya, 2010 and the land laws enacted in 2012. Subsequently, the Cabinet Secretary for the Ministry of Lands and Physical Planning gazetted the Sectional Properties Regulations ("Regulations") on 16 November 2021. Please read the frequently asked questions (FAQs) on the Act and the Regulations below.

What is the purpose of the Sectional Properties Act, 2020 (Act) and Sectional Properties Regulations, 2021 (Regulations)?
The Act provides for the division of buildings into units to be owned by individual proprietors and common property to be owned by proprietors of the units as tenants in common and to provide for the use and management of the units and common property.

The Regulations operationalise the Act and outline the procedure for registration of sectional plans and conversion of long-term leases registered under the Land Registration Act, no. 3 of 2012 (LRA) to sectional titles, among others.

Benefits of the sectional regime of ownership:
It simplifies sale transactions since individual sectional titles can be transferred in the typical way that land is transferred. Lengthy lease documents will no longer be required.
Purchase of sectional units is less costly since the Purchaser will not be responsible for the Vendor’s Advocates legal fees, unless otherwise agreed. They will also not be required to incur costs for transfer of reversionary interest.
Administrative challenges surrounding transfer of reversionary interest and issuance of share certificates are eliminated.
Land rates/rent to be paid per unit thus enhancing revenue collection.
The sectional regime increases access to financing. By simplifying the process of obtaining title documents for the units, unit owners can easily secure financing by charging the units in favour of the lenders.
It offers better protection to the unit owners. Sectional developments are regulated by the comprehensive provisions of the Act and the by-laws of the management corporation. The rules also prescribe disclosure requirements which enable purchasers to be informed of the status of the development including any existing encumbrances when purchasing a sectional unit.
It promotes vertical development on land & therefore optimizes the use of the limited land resources in Kenya. This increases the number of units available for homeowners. It is, therefore, good for high population density areas.