what you need to know

when buying a property

lease or free hold title?

Kenyan laws state that there are two types of property titles in Kenya. The first, called “Title deed”, allows to purchase land and have full ownership without any time limit. The second, called “Lease hold title” is a title that has the same characteristics as the first but has an expiry date. Therefore, the lease is more similar to a rental contract with a duration of 99 years, each year a small rent is paid and it is renewable upon expiry.

Additional info:

The “Title deed” can only be obtained by Kenyan citizens or Kenyan companies where 100% of the shares are owned by Kenyans.
The “Lease hold title” is, instead,  the title that must be requested by any citizen of any nationality even if resident in Kenya. It’s important to know that the registration of a land from “Free Hold Title” to “Lease Hold title” is not reversable.

kenyan laws

In Kenya, there are no notaries; instead, advocates handle the property transfer process when purchasing a property. Typically, there is one advocate for the buyer and another for the seller. They perform a series of checks on the property before registering the transfer from the seller to the buyer at the relevant land registry offices.

The role of the surveyor is crucial when buying land, as they certify the exact position of the land, its boundaries, and the location of the beacons. Tha’s why we recommend consulting a surveyor from the county government offices to ensure the survey is done correctly, avoiding mistakes and subsequent problems.

According to Kenyan laws, only Kenyan citizens and Kenyan companies can own land with a “title deed.” For a company to be considered Kenyan, its shares must be owned by Kenyan citizens. By setting up a trust, however,  it is possible to comply with all Kenyan laws while owning land with a “title deed” instead of leasehold property, thereby avoiding several issues, including the potential loss of the property in the event of death.

The process of buying a property is long and complex, and it is not recommended to pay for the property before the full procedure has been completed by the advocates. A 10% deposit can be paid by the buyer directly to the seller upon signing the “Sale Agreement,” which outlines all the steps to be completed by the advocates to enable the registration of the title in the buyer’s name. Once all the documents are ready for the transfer, the buyer should pay the balance to the seller’s advocate, who will release the funds to the seller upon completion of the transfer.

Important:

To comply with all Kenyan laws, it is essential to hire competent consultants. We are pleased to share the contact information of our advocates, accountants, and surveyors here.