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.