Our first article discussed picking a good lawyer for your land purchase. Today, we will get into the financial aspect of this process: understanding how much you should pay your lawyer.

1. Remuneration Order by the Law Society of Kenya.

Lawyers in Kenya are paid according to the Remuneration Order set out by the Law Society of Kenya (LSK). This order provides a basic structure determining the minimum fees for lawyers. While there may not be explicit maximum stipulations, the total costs can vary depending on the complexity and specifics of the services provided by your lawyer.

2. Basic Legal Fees.

The LSK Remuneration Order specifies that for land purchases priced between Ksh. 1 to Ksh. 5 million, you should pay a basic legal fee of 2% of the land’s value. If the amount is less than Ksh. 25,000, you should pay Ksh. 25,000 minimum. This basic fee ensures you comply with the minimum legal requirements for compensating your lawyer.

3. Value Added Tax (VAT).

In addition to the basic legal fee, a 16% Value-Added Tax (VAT) must be added. This tax is non-negotiable and goes directly to the Government of Kenya. It is important to factor this into your budget as it is an unavoidable expense.

4. Disbursements.

The other component of your legal fees is known as disbursements. Disbursements cover additional costs incurred by your lawyer while handling your transaction. These can include:

• Stamp Duty: Payments to the Kenya Revenue Authority (KRA) for stamp duty. (This is paid directly on the KRA portal, if you can navigate to make the payment, you can do it yourself, if not, your advocate can assist with your credentials.)
• Title Deed Registration Fees: Charges associated with registering the land title deed. They should provide you with a receipt from the Ministry of Lands office.
• Courier Services: Costs for sending and receiving documents.
• Photocopy Fees: Expenses for making copies of necessary documents.

Understanding these components will help you anticipate the overall cost and ensure transparency in your dealings with your lawyer.

It is crucial to empower yourself by understanding what the Remuneration Order stipulates. You can find this information by visiting the Law Society of Kenya or requesting your lawyer to share that schedule with you. This knowledge provides a solid basis for negotiating and ensures you are fully aware of the costs involved.

This transparency also fosters a better relationship with your lawyer, ensuring that both parties are on the same page regarding the financial aspects of the transaction.
We hope this information was useful for you.

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