One of the biggest concerns of foreigners is whether they can buy property in Kenya. The Kenyan Law allows foreigners to own property anywhere within Kenyan borders. Whether you are an Expatriate, a diplomat, an asylum seeker, or even a student, as long as you meet the legal requirements, possess the needed documentation, and are financially capable, you are good to go. As you are reading this, you are probably wondering: What are the legal framework and documentation needed, which location is ideal, and which properties can be owned by foreigners? This article will seek to enlighten you with all the relevant information you need.
Types of properties foreigners can own
- Leasehold land (up to 99 years)
- Apartments or units within buildings
- Commercial properties on leasehold land
- Residential properties on leasehold land
Ideal Investment Locations for Foreigners in Kenya
Nairobi City: Considered the largest city in Eastern and Central Africa, Nairobi has a vibrant economy, rich cultural diversity, pleasant climate, and beautiful scenery. These factors have created a place that stimulates foreign investors to acquire property investment opportunities. Kilimani, Kileleshwa, Lavington, Westlands, and Mombasa Road are popular foreign residential areas because they offer modern amenities, security, and easy access to services.
Laikipia: Laikipia is home to some of Kenya’s largest wildlife conservancies that attract foreigners who are passionate about wildlife conservation and community-based initiatives. In addition to becoming an investment home, the town offers immersive cultural experiences with local communities, including Maasai and Samburu, and is well suited to those looking for both adventure and meaningful engagement.
Malindi Town: Also known as “Little Italy” in reference to the large Italian expatriate community, Malindi has been a multicultural town for decades and has attracted Europeans in great numbers. It has natural beauty, a rich history, and a laid-back coastal charm. Malindi offers pristine beaches, a tropical climate, and nearby attraction sites, including the Malindi Marine National Park and Gede Ruins, making it a perfect investment town for foreigners looking for a relaxing and touring place.
Nanyuki: It is a lively town with a large expatriate community, mainly because of the British military camps in the area. A hub for outdoor adventures, it also offers breathtaking views of Mount Kenya. With its modern amenities and active social life, coupled with peaceful surroundings, the town provides the best option for foreign citizens looking to invest and enjoy serenity.
Understanding The Legal Framework
To buy property in Kenya, it is important for foreigners to understand the legal framework of property ownership in Kenya before diving into the property market. It’s not rocket science to get property in Kenya as a foreigner, but it’s relatively simple. Property ownership in Kenya is governed by various land laws and the Kenyan Constitution. It does allow non-Kenyans to buy, convey, and own property in Kenya. However, foreigners cannot own freehold real estate. Foreigners are allowed to acquire leasehold property, limited to a maximum period of ninety-nine (99) years, and subject to certain conditions under the Land Act. It is also worth noting that all non–citizen transactions in Kenya require the Possession of an Alien ID, which acts as an essential complement to the Foreigner’s identification.
Documentation Required for Foreign Property Acquisition
The amount of documentation required can be extensive, depending on foreigner status, and usually includes the following:
- A valid passport.
- Kenya Revenue Authority (KRA) Personal Identification Number (PIN) for tax compliance.
- An Alien ID (Alien Identification Card) to confirm immigration status.
- Clearance Certificate or consent from the Ministry of Lands and Physical Planning.
- A copy of the current lease and a signed sale agreement
Procedure for a Foreigner Purchasing an Apartment or a Townhouse.
- Look for your desired apartment and perform due diligence to confirm the authenticity of the title and to the effect that all the property rates are fully paid.
- Once the property’s legal status is confirmed, hire a property lawyer to do a title search and draft a sale agreement immediately.
- Now, you will be required to pay the agreed deposit and submit the required documents to the Lands Office for payment of the stamp duty.
- Once the payments are completed, the property documents are signed, and the lawyer registers these with the Lands Registry so that the ownership transfer can take place.
- Finally, a lease certificate is issued to the new apartment owner.
Leasehold Tenure for Foreign Individuals
Under Kenyan laws, leasehold tenure may be extended subject to the approval of the Land Control Board. Negotiating for a new lease tenure up to the maximum time allowed by law is necessary. In metropolitan spaces such as Nairobi, such practices are common. If you need to go through this process, we can help you.
Limitations To Ownership For Foreigners
Freehold Ownership: Freehold land is only owned by Kenyan citizens. A foreign-owned company, even with Kenyan shareholders, cannot own freehold land but can take leasehold property for 99 years or less.
