Anyone can own land in Kenya. Both citizens and foreigners have this privilege.
Two types of tenures.
In accordance with the new constitution promulgated in 2010, there are distinct tenures of land ownership in Kenya; Freehold and Leasehold.
Freehold land gives absolute ownership. It is typically designated for agricultural use or as land owned by community groups. Freehold land exempts owners from the obligation of paying annual rents to the Central Government and, in most cases, from rates paid to the County Government. Though rare, there are instances where counties may choose to charge rates on Freehold properties.
Leasehold land in Kenya is granted with a 99-year lease to the owner. The issued title deed must be accompanied by a lease document, and both the lease and title can be inherited or transferred to another party if sold. The lease is renewable for another 99 years when its time expires. For the 99 years, the owner is required to pay Annual Rent to the Central Government and Rates to the County government to maintain the lease. Failure to make these payments may result in the lease and title being auctioned. The annual rents and rates amounts are nominal and are based on the value of the land, determined by the Valuer at the Ministry of Lands office. When buying or selling Leasehold property, both the title deed and lease must be transferred to the new owner to complete the transaction. If you are the buyer, it is important to ensure that the seller has cleared all their land rents and rates to date. It is also important to note the time left before the lease expires and requires renewal.
Legal Ownership.
Leasehold property can be owned by both citizens and foreigners. For the transfer of title deed and lease documents, the prospective landowner must be recognised as an adult, at least 18 years old, and possess valid identification documents such as an ID or passport. Additionally, a KRA pin certificate is mandatory to ensure compliance with tax regulations.
However, Freehold property is reserved for Kenyan Citizens only. To own freehold property, you must be a Kenyan citizen. Foreigners can not own Freehold property through shareholding in companies or by being married to a citizen. A freehold title deed can only be transferred to a Kenyan Citizen or a company/entity fully owned by Kenyan citizens. If a foreigner identifies a Freehold property they wish to own, it can be converted to a Leasehold property for the title deed to be transferable to them. The usual annual rent and rates will then apply to the new 99-year lease they receive.
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