LEGAL ALERT – CAN FOREIGNERS OWN LAND AND APARTMENTS IN KENYA?

LEGAL ALERT – CAN FOREIGNERS OWN LAND AND APARTMENTS IN KENYA?

Foreign investors, expatriates, and members of the Kenyan diaspora often ask the same critical question: Can foreigners own land or apartments in Kenya? The answer is yes, but with several legal limitations and important considerations. In this blog post, Ravi Homes explores what the Kenyan Constitution allows, how foreign nationals can invest in real estate, and the legal framework that governs foreign property ownership.

1. What the Law Says: Leasehold vs. Freehold

Under the Constitution of Kenya (2010), foreigners can own property, but only under a leasehold tenure. Freehold ownership, which allows indefinite landholding, is restricted to Kenyan citizens.

  • Freehold: Grants full ownership of land for an unlimited time. Not available to foreigners.
  • Leasehold: Grants the right to use land for a fixed term (typically up to 99 years). Leaseholds are renewable, subject to conditions set by the government.

This means that while foreign nationals cannot own land indefinitely in Kenya, they can legally own property through long-term lease agreements, often renewable upon expiry.

2. Can Foreigners Buy Apartments in Kenya?

Yes, foreigners can buy apartments in Kenya. In fact, purchasing apartments and townhouses is one of the most accessible and secure ways for non-citizens to invest in Kenyan real estate.

Under the Sectional Properties Act, apartment owners are issued Sectional Title Deeds. These deeds grant individual ownership of a housing unit and a shared interest in common areas such as staircases, parking lots, and gardens.

3. What Documents Are Required to Buy Property in Kenya?

Foreigners do not need a Kenyan ID to purchase property. However, a few legal documents are required:

Buyer Requirements:

  • Valid passport
  • KRA PIN certificate (Kenya Revenue Authority Personal Identification Number)

Seller or Developer Requirements:

  • Original title deed
  • Transfer documents
  • Land rate and land rent receipts
  • Occupation certificate and completion certificate
  • Approvals from authorities such as NEMA, NCA, and the county government
  • Know-Your-Customer (KYC) documents, including ID, KRA PIN, and incorporation details (if applicable)

The KRA PIN is mandatory as it is used for tax purposes, including the payment of Stamp Duty.

4. Conducting Due Diligence: Why It’s Crucial

Before finalizing any real estate transaction, especially as a foreigner, it is essential to conduct thorough due diligence. This ensures that the transaction is legitimate and the property is free from encumbrances or disputes.

Key Steps:

  • Engage a licensed Advocate of the High Court of Kenya
  • Conduct official land searches at the Ministry of Lands
  • Verify land rates and rent payments
  • Search the court registry for pending legal disputes
  • Check developer approvals (NEMA, NCA, etc.)

These steps protect buyers from fraud, illegal developments, or future ownership challenges.

Read More: Buying Property in Kenya: A Detailed Guide for Foreigners

5. Verifying the Developer or Seller

It’s not enough to verify the property—you must also verify the seller or developer. Foreign buyers should:

  • Conduct a company search at the Companies Registry for corporate sellers
  • Review the track record of the developer—have they successfully completed past projects?
  • Request full KYC documents (IDs, KRA PINs, incorporation certificates)

This ensures the transaction is conducted with a legitimate entity that is in compliance with Kenyan law.

6. Understanding the Transaction Process

The legal process of buying property in Kenya takes approximately 90 days. This includes:

  • Due diligence
  • Drafting the Sale Agreement
  • Payment of taxes and fees
  • Registration of transfer at the Ministry of Lands

For off-plan apartments, timelines vary based on the construction schedule and milestones set in the agreement.

7. Taxes and Legal Fees

When buying property in Kenya, both foreigners and locals are subject to the following taxes and statutory fees:

  • Stamp Duty:

    • 4% in urban areas

    • 2% in rural areas

  • Statutory Fees:
    Payable to the land registry for documentation and processing

  • Legal Fees:
    Usually around 2% of the purchase value, governed by the Advocates Remuneration Order

It is important to budget for these additional costs when planning your investment.

8. Can You Sign Documents From Abroad?

Yes. Documents signed outside of Kenya must be notarized by a Notary Public in your country. A certificate of proper execution is required, in line with Section 44(4) of the Land Registration Act.

This provision allows foreigners to participate in real estate transactions without having to travel back and forth to Kenya.

9. Buying Off-Plan Apartments: Safe or Risky?

Buying off-plan can be a great investment opportunity, but it requires extreme caution.

Safety Checklist:

  • Confirm developer’s legal approvals (NEMA, NCA, County permits)
  • Review past projects and customer feedback
  • Ensure the Agreement for Sale includes:
  1. Construction timelines
  2. Refund terms in case of default
  3. Penalties for non-completion
  4. Dispute resolution mechanisms

With proper legal backing, buying off-plan can yield high returns, but without due diligence, it can be risky.

Read More: Buying Off-Plan Projects in Kenya: Opportunities, Risks, and Smart Strategies

10. Renewing a 99-Year Lease

Once a leasehold title nears expiration, owners can apply for renewal through the National Land Commission.

Lease Renewal Process:

  1. Submit an application to the NLC
  2. Provide evidence of payment of land rates and rent
  3. Comply with the conditions of the original lease
  4. Wait for approval (typically within 90 days)
  5. Upon approval, the land is re-surveyed and revalued
  6. A new lease is issued with an updated term

This process ensures continuity of ownership and protects long-term investments.

11. What About Buying Land Through a Company?

Foreigners may consider opening a Kenyan company to facilitate land ownership. However, even when the company is fully foreign-owned, it is still restricted to leasehold tenure.

Only Kenyan citizens, including naturalized citizens, may hold freehold land.

Conclusion: A Legally Secure Path to Property Ownership in Kenya

While foreigners cannot own freehold land in Kenya, the law does permit leasehold ownership for up to 99 years, renewable, and full ownership of apartments through sectional titles. With proper legal advice, due diligence, and verified developers, Kenya offers an excellent opportunity for real estate investment.

Whether you’re planning to buy an apartment in Nairobi, invest in off-plan developments, or secure leasehold land for commercial use, knowing the legal framework is your first step to safe, strategic, and profitable property ownership in Kenya.

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