Category: Buyer Guides

  • How to Make Above KES 100,000 in Monthly Real Estate Income

    How to Make Above KES 100,000 in Monthly Real Estate Income

    Hitting KES 100K/month in real estate is a huge milestone — it proves you’ve got the basics right. And you have avoided the Common Mistakes That Keep Most Real Estate Agents Stuck at KES 20,000–30,000/Month in Kenya

    But if you’re reading this, you’re probably wondering:
    “How do I go from there to KES 250K and beyond?”

    This is where most agents plateau. They’re working full-time, closing a few deals, but can’t seem to grow past that 100K ceiling.

    The truth? Scaling to 250K+ isn’t about working more — it’s about working smarter and building leverage.

    Here’s exactly how the top 1% of real estate agents in Kenya are scaling their monthly income beyond 250K.


    Step 1: Increase Your Average Deal Value

    It’s not just about closing more deals — it’s about closing better ones.

    ✅ Focus on:

    • Higher-priced listings (KES 5M–20M properties = KES 100K–600K per sale)
    • Land deals with larger commissions
    • Commercial properties or furnished apartments with long-term value

    📌 Goal: Fewer deals, bigger cheques.


    Step 2: Build a Small Team or Referral Network

    You can only do so many site visits and calls alone. Scaling means multiplying your reach.

    ✅ Start with:

    • One assistant or intern to help with posting and follow-ups
    • A few trusted junior agents who bring in leads (you split commissions)
    • Creating partnerships with caretakers, caretakers, or brokers in your niche

    📌 Goal: Move from solo agent to team leader — even informally.


    Step 3: Productize Your Knowledge or Services

    At 100K+, you already know things beginners would pay for.

    ✅ Monetize your experience:

    • Offer paid training to new agents (1:1 sessions, webinars, PDFs)
    • Create listing packages for other agents or landlords (photos, videos, captions)
    • Sell digital guides like “How to Buy Land Safely in Kenya”

    📌 Goal: Add income streams that don’t depend on you closing a deal.

    How to Scale Above KES 100,000 to in Monthly Real Estate Income


    Step 4: Focus on Personal Brand Authority

    Top agents don’t just sell — they influence.

    ✅ Position yourself as an expert:

    • Share market insights, pricing trends, or land-buying tips on social media
    • Start a weekly YouTube or podcast episode
    • Post behind-the-scenes of your work (site visits, negotiations, success stories)

    📌 Goal: Get clients to come to you — and trust you with bigger budgets.

    The Exact Steps Top Real Estate Agents Take to Earn Above KES 100,000/Month in Kenya


    Step 5: Raise Your Rates or Commission Structures

    If you’re managing property or offering marketing services, it’s time to charge more — and professionally.

    ✅ Ways to raise your earnings:

    • Charge a % of rent collected (instead of flat fees)
    • Offer premium marketing packages to landlords (video, drone, FB ads)
    • Negotiate exclusive deals where you’re the sole agent on a listing

    📌 Goal: More value = more money.

    How to Earn KES 100,000 Per Month in Kenyan Real Estate (It’s Easier Than You Think!)



    Final Word: Scaling Requires a Mindset Shift

    To earn 250K/month and beyond, you have to stop thinking like a hustling agent — and start operating like a real estate entrepreneur.

    You’re no longer just closing deals — you’re building systems, teams, products, and a brand.

  • Common Mistakes That Keep Most Real Estate Agents Stuck at KES 20,000–30,000/Month in Kenya

    Common Mistakes That Keep Most Real Estate Agents Stuck at KES 20,000–30,000/Month in Kenya

    Let’s be honest — a lot of real estate agents in Kenya are stuck earning KES 20K–30K per month, sometimes even less.

    And it’s not because they’re lazy. Most are working hard — doing site visits, posting listings, chasing leads — but still not growing.

    So what’s going wrong?

    In this blog, we break down the most common (and costly) mistakes that keep agents stuck at low income levels — and how to fix them.


    Mistake #1: No Clear Niche

    Trying to sell land in Nanyuki, rent bedsitters in Rongai, and manage Airbnbs in Westlands — all at once?

    🚫 That’s a recipe for confusion and burnout.

    🧠 Why it keeps you stuck: Clients can’t remember what you’re good at. You’re always starting from scratch. No clear identity = no referrals.

    What to do instead: Pick one niche — like land sales in a specific area, apartments under KES 5M, or furnished rentals — and go deep.


    Mistake #2: Inconsistent Visibility

    You post listings today, go silent for 3 weeks, then come back to post 5 random houses on your status.

    🚫 That’s not marketing — that’s gambling.

    🧠 Why it keeps you stuck: Inconsistent presence means people forget you. Clients work with agents they remember.

    What to do instead: Show up every day — even if it’s just a WhatsApp status, market update, or video tour.

    How to Scale Above KES 100,000 to in Monthly Real Estate Income


    Mistake #3: Relying Only on WhatsApp or One Channel

    WhatsApp is powerful, but if it’s the only place you’re posting, you’re limiting your reach.

    🚫 No Facebook page, no TikTok, no property platforms = low visibility.

    🧠 Why it keeps you stuck: You’re missing out on hundreds (even thousands) of potential buyers or tenants who aren’t on your contact list.

    What to do instead: Use 2–3 platforms consistently. WhatsApp + Facebook + TikTok is a strong combo for beginners.

    Common Mistakes That Keep Most Real Estate Agents Stuck at KES 20,000–30,000/Month in Kenya


    Mistake #4: No Follow-Up System

    You get 15 leads from a listing, but only call 3 of them back.

    🚫 You’re leaving money on the table — daily.

    🧠 Why it keeps you stuck: Most clients don’t buy on the first contact. They need reminders, updates, and trust-building over time.

    What to do instead: Create a simple follow-up routine:

    • Call within 24 hours
    • Send property updates weekly
    • Check in monthly with past leads

    The Exact Steps Top Real Estate Agents Take to Earn Above KES 100,000/Month in Kenya


    Mistake #5: Poor Photos & Descriptions

    Blurry photos. No video. Captions that say “3-bedroom for rent. Call me.”

    🚫 That’s not marketing — that’s repelling clients.

    🧠 Why it keeps you stuck: Clients scroll past boring, low-quality listings. They don’t trust agents who don’t put effort into their presentation.

    What to do instead: Use clean photos, clear videos, and compelling descriptions. Apps like Canva, Snapseed, and CapCut can help.

    How to Earn KES 100,000 Per Month in Kenyan Real Estate (It’s Easier Than You Think!)


    Mistake #6: Working Alone with No Mentorship or Community

    You’re doing everything by yourself — no training, no mentors, no feedback.

    🚫 That’s a lonely road.

    🧠 Why it keeps you stuck: You repeat the same mistakes. You don’t learn what’s working for others. And when you’re stuck, there’s no one to guide you.

    What to do instead: Join real estate communities, attend training events, or get a mentor. Success in real estate grows faster with connection.


    Mistake #7: Not Treating Real Estate Like a Business

    You wake up and hope something comes up — instead of planning your day.

    🚫 No targets. No systems. Just vibes.

    🧠 Why it keeps you stuck: Real estate is commission-based. If you don’t control your time and activities, you’ll always be at the mercy of chance.

    What to do instead:

    • Set monthly income goals
    • Track your leads and conversions
    • Block time for calls, content, visits, and follow-ups

    Final Thoughts:

    If you’ve been stuck earning KES 20K–30K/month for more than 3 months, it’s time to change your strategy — not just work harder.

    Here’s a checklist to break the cycle:

    ✅ Pick a niche
    ✅ Be visible every day
    ✅ Use more than one platform
    ✅ Follow up like a pro
    ✅ Upgrade your content
    ✅ Find mentorship or a team
    ✅ Set goals and build systems


    Want Help?

    👉 Subscribe to our newsletter for weekly tips on how to go from surviving to scaling your real estate income.
    Or DM us to join our next free training session on “How to Hit 100K in Real Estate — Even If You’re Starting Small.”

  • The Exact Steps Top Real Estate Agents Take to Earn Above KES 100,000/Month in Kenya

    The Exact Steps Top Real Estate Agents Take to Earn Above KES 100,000/Month in Kenya

    In Kenya’s real estate, hitting KES 100,000 per month is a milestone. It means you’ve built a system that brings in leads, converts them, and pays you consistently.

    But here’s the truth: most agents never get there.
    They’re stuck making KES 20K–50K a month, chasing leads that don’t convert, and depending on luck.

    So what exactly do the top agents — the ones consistently earning KES 100K or more — do differently?

    Let’s break it down step by step.

    The Exact Steps Top Real Estate Agents Take to Earn Above KES 100,000/Month in Kenya


    Step 1: They Pick a Clear Niche

    Top agents don’t try to do everything. They choose a specific focus and dominate it.

    ✅ Common niches:

    • Land sales in specific counties (e.g.,Kiambu, Kajiado, Machakos, Mombasa, etc)
    • Apartment letting or Sales in Nairobi or major towns
    • Short-term rental management (Airbnb, furnished units)
    • Commercial leasing or office space brokerage

    🔑 Why it matters: Niche agents become the go-to person in that area. They waste less time and close deals faster.

    How to Scale Above KES 100,000 to in Monthly Real Estate Income


    Step 2: They Set Monthly Income Targets

    Instead of hoping, they do the math.

    Example:

    If your goal is KES 100K/month, and you earn 3% commission on a KES 2M plot = KES 60K
    You only need 2 sales a month to pass the 100K mark.

    Or:

    If you earn KES 10K per rental, you need to let 10 houses/month.

    🔑 Why it matters: Clear targets help you focus on the right activities — not just staying busy.

    Common Mistakes That Keep Most Real Estate Agents Stuck at KES 20,000–30,000/Month in Kenya


    Step 3: They Build a Daily Visibility System

    Top agents don’t wait for clients to find them. They show up daily — online and offline.

    Common strategies:

    • Daily WhatsApp status updates with listings or tips
    • TikTok or Instagram Reels of property tours
    • Facebook groups and pages with consistent posting
    • Offline: showing land, houses or attending networking events.

    🔑 Why it matters: Clients only trust agents they see often. Visibility builds credibility.

    How to Earn KES 100,000 Per Month in Kenyan Real Estate (It’s Easier Than You Think!)


    Step 4: They Follow Up Religiously

    Most leads don’t convert on Day 1 — but top agents follow up until they do.

    Their system includes:

    • Makig cold calls.
    • Sendig email followups.
    • Using WhatsApp broadcast lists for updates.
    • Scheduling follow-ups in Google Calendar or a notebook.
    • Re-sharing listings weekly with fresh angles or urgency.

    🔑 Why it matters: Money is in the follow-up. Lazy agents chase new leads. Top agents nurture existing ones.


    Step 5: They Invest in Their Brand

    Top agents know people don’t just buy property — they buy trust. So they invest in how they show up.

    Branding investments include:

    • Clean, professional photos of themselves
    • Logos and property templates (Canva or hired designer)
    • Professional videography or walkthroughs for listings
    • Sharing client testimonials and success stories

    🔑 Why it matters: A strong brand makes you look experienced — even if you’re just getting started.


    Step 6: They Learn Fast & Outsource Smart

    Top agents are always learning and improving:

    • They network with other agents.
    • They take courses (sales, negotiation, proptech).
    • They watch YouTube videos to improve scripts or ads
    • They outsource editing, photography, or social media if needed

    🔑 Why it matters: Time is money. Top agents focus on income-generating tasks and outsource the rest when they can.


    Step 7: They Build a Referral Machine

    Once clients trust them, top agents ask for referrals intentionally.

    How?

    • “Do you know someone else looking to buy?” after every conversation.
    • Offering referral bonuses or incentives
    • Staying top-of-mind so past clients recommend them

    🔑 Why it matters: Referrals = warm leads = faster sales.


    Final Thoughts:

    If you’re earning less than KES 100K/month in real estate, chances are you’re missing one or more of these steps.

    Here’s a quick checklist:

    ✅ Do you have a clear niche?
    ✅ Do you know your monthly target and how many deals it takes?
    ✅ Are you showing up — online and offline?
    ✅ Do you follow up consistently?
    ✅ Is your brand making people trust you?
    ✅ Are you learning and improving every week?
    ✅ Are you actively building referrals?

    If not — start now. You don’t need magic. You need a system and consistency.


    Want more?

    I’ll be sharing more real estate growth tips every week.
    👉 Subscribe to our email list for strategies, tools, and case studies that help agents grow from 10K/month to 250K+.

  • How to Earn KES 100,000 Per Month in Kenyan Real Estate (It’s Easier Than You Think!)

    How to Earn KES 100,000 Per Month in Kenyan Real Estate (It’s Easier Than You Think!)

    Everyone talks about “six-figure salaries,” but in real estate, you – you create your own income. The big question for many is: what does it really take to earn KES 100,000 per month in real estate here in Kenya?

    Whether you’re a new agent, a part-time freelancer, or an aspiring property manager, this guide will break it down for you.

    Why KES 100K is a Major Win in Real Estate

    Hitting the KES 100,000 mark means you’ve moved beyond just hoping for sales. You’ve found your rhythm, developed effective systems, and built a solid client base.

    The Building Blocks: What You Need to Get There

    To earn KES 100,000 per month consistently, you need to stop treating real estate like a side gig and start running it like a proper business.

    Here’s what most agents who achieve this milestone have in common:

    • Consistent Experience: 1–3 years of steady work, not on-and-off efforts.
    • Clear Focus: They specialize in one area: sales, letting (rentals), or property management.
    • Growing Personal Brand: People know who they are and what they do.
    • Essential Skills: They gain training or mentorship in sales, marketing, negotiation, or customer service.
    • High Visibility: From cold calling to property tours, they are active daily.

    4 Real Estate Roles That Can Earn You KES 100K+ Per Month

    1. Property Sales Agent

    This is the most common (and scalable) path to a six-figure income.

    Here’s the math:

    • Sell 2–3 plots per month priced at KES 800,000 – KES 1.5 million each.
    • OR close 1 apartment unit per month worth KES 4 million – KES 6 million.
    • Your Earnings: Typically 3–5% commission per deal.
    • Tools to Use: TikTok, WhatsApp, YouTube, or Facebook Marketplace to attract buyers.

    ✅ Key Tip: Partner with reputable developers and landowners who offer good commission rates and quick processing.

    2. Letting Agent (Rentals)

    Rentals might seem small per transaction, but they add up quickly if you build volume.

    Here’s the breakdown:

    • Let out 8–10 properties per month if working on lower end of the market. or 2-3 properties on the higher end.
    • Your Earnings: Typically one month’s rent as commission (KES 10,000 – KES 50,000 per unit).
    • Focus On: Furnished apartments, student housing, or urban bedsitters.
    • Build Networks: Connect with caretakers, landlords, and previous tenants for referrals.

    ✅ Key Tip: Offer extra services to landlords, like rent collection.

    How to Scale Above KES 100,000 to in Monthly Real Estate Income

    3. Property Manager

    This role is ideal for agents who prefer stable, monthly income over commission-based hustling.

    Here’s what that looks like:

    • Manage several rental units.
    • Your Earnings: Charge 5% to 10% commission per unit per month.
    • Your Responsibilities: Oversee rent collection, repairs, service charge tracking, and property inspections.
    • Opportunity to Upsell: Offer additional services like cleaning, marketing for vacant units, or coordinating major repairs.

    ✅ Key Tip: Start small. Even managing few well-paying units consistently can get you to your goal.

    4. Real Estate Marketer / Content Creator

    Yes – you can earn KES 100,000+ per month even without being a licensed agent by offering marketing support to property owners and agents.

    What this looks like:

    • Offer content packages to 3–5 agents or developers.
    • Your Earnings: Charge KES 10,000 – KES 30,000 per month for services like video creation, listing management, or Facebook ads.
    • Your Skills: Create engaging Reels, record voiceovers, manage TikTok pages, or produce property tours.
    • Free Tools to Use: Canva, CapCut, Google Ads Manager, or Meta Ads Manager.

    ✅ Key Tip: Aim to create one viral piece of content per month – it can generate 50–100+ leads and attract more clients!

    Common Mistakes That Keep Most Real Estate Agents Stuck at KES 20,000–30,000/Month in Kenya

    So, What’s the Winning Formula?

    KES 100,000/month in real estate = Clear Niche + Repeatable System + Daily Visibility + Consistent Follow-ups

    You don’t need to own a big agency. You don’t even need to be based in Nairobi. You just need to be visible, helpful, and consistent.

    The Exact Steps Top Real Estate Agents Take to Earn Above KES 100,000/Month in Kenya

    Final Thought:

    Real estate in Kenya can be incredibly rewarding financially – but only when you stop treating it like a side hustle.

    The clients are out there. The deals are out there. The real question is: are you ready to position yourself to earn more?

  • Hunter, Farmer, Gatherer: Which Real Estate Agent are you?

    Real estate—especially in today’s market—isn’t just about knowing how to sell land or houses. It’s about how you show up in front of clients. Your personality, your strategy, and your way of building trust define your results far more than your listings ever will.

    This is where the “Hunter-Farmer” model comes in—a classic framework used in sales to describe different types of salespeople.

    But today, we’re going a step further.

    Let’s explore the three personas of real estate agents: Hunter, Farmer and Gatherer.

    1. The Hunter Agent

    The Hunter is hungry. Always chasing the next lead. Cold calling, posting every day, running around Nairobi or Mombasa showing plots or apartments, and always pitching.

    They live by one rule: “It’s a numbers game.” More calls, more clients, more viewings.

    🔺 Trap to avoid: Burnout. When deals are slow, the Hunter can become desperate, pushing too hard or chasing bad leads.

    Real-life example: You might recognize the Hunter in that agent who posts 20 listings a week, calls every number they get, and rarely follows up—because they’re already on to the next.

    2. The Farmer Agent

    The Farmer focuses on nurturing existing relationships. They maintain their “farm”—whether that’s a neighborhood, apartment complex, or network of past clients.

    They thrive on referrals, repeat business, and slow but steady growth.

    🔺 Trap to avoid: Over-dependence on one market or one set of clients. If your “farm” dries up (maybe due to economic shifts), you may be left with no pipeline.

    Real-life example: You know the agent who manages a few buildings and gets steady commissions from tenant renewals or repeat landlords.

    3. The Gatherer Agent

    The Gatherer is a connector. They don’t just wait for opportunities—they go looking for them in smart ways. They attend events, network with developers, and are always gathering market intelligence.

    They build strong relationships and are seen as “the person who knows things.”

    🔺 Trap to avoid: Staying too comfortable in your circle. You must still close deals.

    Real-life example: The Gatherer is that agent who knows five landlords in every area and can connect you with a plot in Kisumu and an Airbnb in Diani.

    Have you seen yourself in any of the above? If not, let me know in the comments.

    For me, I am currently a gatherer and trying to become something else.

    A guide.

    I want to educate and empower my clients. I want to help buyers and sellers navigate the market—not push them through it.

    Here is how I plan to do that:

    • Support Agents – I want to support other real estate agents to do what they already do. Grow. Sell.
    • Sales intelligence – understanding what buyers and sellers need, and spotting opportunity.
    • Social influence – using personal branding, content, and trust-building to attract clients instead of chasing them.

    Here is why I think if you join me, you will win.

    Real estate clients today are overwhelmed. With listings everywhere, Facebook ads popping up constantly, and agents promising the moon, trust is at an all-time low.

    So, who do clients want to deal with?

    ✅ Someone who educates, not pressures
    ✅ Someone who listens, not just sells
    ✅ Someone who guides, not chases

    The Guide is the trusted advisor—not just an agent. And that’s what clients in Kenya’s evolving property market are craving.

    Want to attend and sit with me in a podcast? DM me.

    Here is one podcast I did.


    How to Become a Guide in Real Estate

    1. Build your social influence.
    Start posting helpful content. Teach people what they don’t know. Share your story. Answer questions. Show that you understand the market and the people in it.

    If you’re in a room full of agents sharing the same listings, you won’t stand out—unless you’re the one sharing value.

    2. Use sales intelligence tools.
    Keep learning. Use property data, market reports, even feedback from past clients to sharpen your insight. Be the agent who knows why land is rising in Kitengela or why some apartments stay vacant in Kilimani.

    So now ask yourself: Are you ready to become a Guide?

  • Supreme Court Clarifies Tenant’s and Landlord’s Rights on Lease Termination

    Several years ago, lawyers and property experts started raising concerns about Kenya’s outdated law governing commercial leases — the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act. Although this law was meant to protect tenants, smart lease drafting and rigid interpretations by landlords often made it very difficult for tenants to exit leases, even in genuine cases of hardship.

    A recent Supreme Court decision in Kwanza Estates Limited v Jomo Kenyatta University of Agriculture and Technology (JKUAT), delivered in December 2024, now provides clarity — and some important lessons — for both landlords and tenants.


    What Happened?

    In 2016, Kwanza Estates (the landlord) and JKUAT (the tenant) entered into a six-year lease. The rent started at Kshs. 45.5 million per year and would increase over time. The lease was not registered and had no break clause (meaning there was no easy way to end it early).

    In 2021, after COVID-19 hit hard and new government policies reduced JKUAT’s income, the university decided that running its Nakuru campus was no longer financially sustainable. JKUAT gave the landlord a three-month notice and tried to vacate the premises.

    But Kwanza Estates refused to accept the termination. They blocked JKUAT’s attempts to move out, issued fresh rent invoices, and even sent auctioneers after the university to recover unpaid rent — arguing that the lease was still in force until April 2022.


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    What the Courts Said

    • The Environment and Land Court (ELC) sided with the landlord, saying the lease had no break clause and JKUAT must pay rent until the lease expired.
    • The Court of Appeal overturned that, finding that COVID-19 and other unforeseen changes had frustrated the lease, and the phrase “sooner determination” in the lease allowed early exit. They ordered JKUAT to pay Kshs. 40 million to fix any damages to the premises but freed them from paying future rent.
    • The Supreme Court, however, disagreed with the Court of Appeal and mostly agreed with the original trial court — but with important clarifications:
      • Force majeure (unforeseen major events like pandemics) can only apply if it’s written in the contract — and it wasn’t in this lease.
      • Frustration (when unexpected events make it impossible to perform a contract) applies only in very rare cases — and COVID-19 restrictions had already been lifted when JKUAT tried to exit.
      • The lease had no valid early termination clause.
      • JKUAT’s attempt to leave early was a breach of contract.

    The Supreme Court ruled that landlords cannot force tenants to stay on a property they want to vacate, but they can claim damages for the early breach. In this case, damages — not future rent — were the correct remedy.


    Why This Decision Matters

    The Supreme Court’s ruling clears up several big questions for anyone entering a lease:

    • Fixed-term leases without termination clauses are risky for tenants. Exiting early can expose tenants to heavy damages claims.
    • Force majeure needs to be clearly stated in the contract. Without it, tenants cannot easily argue that events like a pandemic justify ending a lease.
    • Landlords must try to mitigate their losses. If a tenant leaves early, landlords should look for a new tenant rather than simply claiming full rent for the remainder of the term.

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    Practical Lessons

    For Landlords:

    • Always draft leases carefully — including provisions for early termination and penalties.
    • If a tenant leaves early, focus on finding a replacement quickly. Courts expect landlords to minimize losses, not sit back and demand full rent.
    • Understand that damages, not continued rent, are the main legal remedy if a tenant breaches a lease.

    For Tenants:

    • Never assume you can walk away from a lease, even in tough times, unless the lease allows it or you can prove true frustration.
    • If you want protection against events like pandemics or economic crises, insist on a strong force majeure clause when negotiating your lease.
    • Know that you bear the burden of proving frustration — and courts apply it very strictly.

    High Court Ruling is a win for Off-Plan Property Buyers


    Final Thought

    The Supreme Court’s decision in Kwanza Estates v JKUAT is a wake-up call: both landlords and tenants must be deliberate and cautious when entering lease agreements. Old tricks like drafting long leases without exit options may no longer guarantee landlords rent security. On the other hand, tenants must understand that hardship alone doesn’t automatically release them from their lease obligations.

    Clear contracts, clear expectations, and clear remedies — that’s the way forward.

  • Supreme Court Ruling Restores Hope for Leaseholders

    The Supreme Court has recently delivered a landmark ruling that promises major relief for many individuals with pending applications for lease extensions on government land.

    At the center of the case was a land dispute in Ngara, Nairobi. A proprietor who had held a leasehold interest since 1968 — set to expire in 2001 — had applied for a lease extension three months before expiry. However, the government offered no response. Despite the silence, the proprietor remained in possession of the land, continuing to pay land rent and rates diligently.

    Yet in 2009, the same property was allocated to another party. A new lease was issued, and the land was later sold. In 2014, the new buyer and the seller forcibly evicted the original proprietor, eventually using the property to secure financing for a high-rise building.

    The evicted owner challenged the eviction in court, and after years of litigation, the matter reached the Supreme Court.

    The detailed judgment is found in the link below.


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    What the Supreme Court Decided

    The Court ruled that the 2009 allocation was unprocedural and illegal, making any title issued from it invalid.

    “More often than not, public leases contain an option for renewal. However, such renewal must be activated by an application by the lessee to the government agency having authority to renew the lease. It follows therefore that where the lessee makes an application for renewal of his/her lease, his/her application would be considered either way and that, the applicant would be furnished with reasons should the application be declined,” states Supreme court Judges led by Justice Mohammed Ibrahim.

    This decision clarified that the doctrine of an innocent purchaser for value — which often protects buyers who purchase land without knowledge of defects — could not apply in this case. A title acquired through irregular or illegal allocation cannot be legitimized, even by an innocent purchaser.

    The doctrine of bona fide purchaser does not shield someone from the consequences of an invalid root of title.

    KRA Introduces New System to file and pay taxes

    The Court emphasized that the original proprietor, who had continued to occupy the land and had duly applied for an extension, had a legitimate expectation to have their application processed fairly. If the extension was to be denied, the authorities owed them clear reasons — not silence and subsequent dispossession.

    The Supreme Court has unequivocally affirmed that upon the expiry of a lease, if it is not formally renewed, the leasehold interest is extinguished in its entirety. The land in question automatically reverts to the Government, transforming from a private leasehold back into Public Land.

    The court’s position is clear: continued occupation or payment of land rent/ rates does not override the fundamental principle that a lease, once expired and unrenewed, ceases to have any legal effect.

    As a result, the Court ordered:

    • The cancellation of the current lease.
    • The restoration of the evicted proprietor’s name to the land register.
    • The demolition of the high-rise building constructed on the disputed land.

    High Court Ruling is a win for Off-Plan Property Buyers


    Why This Ruling Matters

    This judgment strikes a powerful blow against brokers, corrupt officials, and political players who manipulate lease processes for personal gain.

    It reinforces the right of leaseholders to apply for lease extensions without fear that their applications will be intentionally delayed, misplaced, or ignored — leading to unlawful reallocation.

    In broader terms, the ruling adds to a growing body of progressive jurisprudence protecting leasehold interests, inspired by Kenya’s Constitution and reformed land laws. Over time, these legal developments are helping rebuild public trust in land administration.


    A Wake-Up Call for Land Institutions

    The Counties, the Ministry of Lands, and the National Land Commission must now take this emerging legal trend seriously.

    It is critical for these institutions to retrain their officers to respect proper procedures, uphold transparency, and ensure fair treatment of leaseholders. Failure to adapt will expose them — and the public — to costly legal battles and increased distrust.


    Bottom Line:
    This Supreme Court ruling is more than just a win for one person. It’s a major step forward for all Kenyans who hold leasehold interests — affirming that justice and fairness must prevail, even in a system historically fraught with irregularities.

    As a property owner, the most prudent approach is to apply for a lease extension at least five years before expiry. This rule of thumb exists for good reasons. In Kenya, there is a legal distinction between a lease extension and a lease renewal.

    An extension, if applied for before the lease expires, preserves the leaseholder’s legal interest and ensures continuity of title. Renewal, on the other hand, occurs after expiry, by which time the land has already escheated to the Government, the lessee’s rights have lapsed, and any new grant is subject to reallocation risks and fresh terms.

    When you factor in persistent delays at the land registry and the complications that can arise when life happens (such as the death of a co-tenant activating a procedural burden in the form of succession proceedings before any land dealings can occur), it becomes clear that waiting too long transforms a manageable administrative process into a precarious legal one.

  • KRA Introduces New System to file and pay taxes

    The Kenya Revenue Authority (KRA) has launched the Electronic Rental Income Tax System (eRITS) as part of its commitment to improving tax compliance in the real estate sector. Built on KRA’s Enterprise Integration Platform, Gava Connect, this system aims to simplify the tax process for landlords, property owners, and real estate agents.

    Dr. Chris Kiptoo, the National Treasury Principal Secretary, highlighted that eRITS is a significant milestone in streamlining tax compliance. By enhancing efficiency and equity in the tax system, this initiative will contribute directly to national development, benefiting all Kenyans. Kiptoo emphasized that the taxes collected through this system would support essential sectors like healthcare, education, and infrastructure.

    Through eRITS, landlords can now register their properties and file taxes more easily. The system reduces the administrative burden, ensuring a smoother process for everyone involved. By making it easier to comply, the KRA hopes to increase voluntary compliance, ensuring that taxes are paid promptly and accurately.

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    Humphrey Wattanga, KRA’s Commissioner-General, shared that eRITS would integrate seamlessly with KRA’s broader tax ecosystem, enabling property owners to compute, file, and pay taxes efficiently through both the Gava Connect API and the eCitizen platform. The system is designed to foster a more predictable and fair tax environment, ultimately benefiting both the government and taxpayers.

    Landlords earning between Ksh 288,000 and Ksh 15 million annually are required to pay tax at the rate of 7.5% on their rental income, a reduction from the previous 10% tax rate. This tax rate change in January 2024 aims to ease the burden on taxpayers and drive further compliance.

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    In the 2023/2024 financial year, tax revenues from landlords reached Ksh 14.4 billion, reflecting a 5.2% increase compared to the previous year. This indicates that the government’s efforts to streamline tax compliance are beginning to yield results, though the growth rate has slowed compared to the previous fiscal year.

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  • Court of Appeal clarifies on VAT on sale of commercial buildings

    A recent ruling by the Court of Appeal has cleared up a long-standing question in Kenya’s real estate world: Should VAT apply to the sale of commercial buildings?

    Spoiler: Yes, it should. Even if the land itself is VAT-exempt.

    Let’s break it down.

    Section 5 and Paragraph 8 of Part II of the First Schedule of the VAT Act (VAT Act) exempts the sale, rental, hiring or leasing of land and residential premises from VAT (save for hotels and holiday accommodations).


    So, What Happened?

    In the case of Kenya Revenue Authority v Ndegwa [2025], the Court of Appeal made a big decision that changes how we look at VAT in commercial property deals.

    Here’s the story:
    David Mwangi Ndegwa bought a piece of land from Standard Chartered Bank. That land came with commercial buildings on it. The total value? About KES 70 million.

    KRA stepped in and said, “Hold up — you owe KES 11.2 million in VAT (16% of the total value).”
    Ndegwa disagreed and paid under protest, then went to court asking for a refund.


    What Did the Lower Courts Say?

    At first, the High Court sided with Ndegwa. They looked at the VAT Act and interpreted “land” to include everything on, above, and below the surface. So in their view, the entire transaction — land and buildings — was VAT exempt.

    But there was a twist.

    In a separate case (National Bank of Kenya v Commissioner of Domestic Taxes), the High Court said Parliament clearly meant to exempt residential buildings only, not commercial ones. So, VAT could apply to commercial buildings, even if they were on VAT-exempt land.

    Confused yet? You’re not alone — this contradiction is what landed the case at the Court of Appeal.

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    What Did the Court of Appeal Decide?

    The Court of Appeal said the definition of “land” depends on the context — especially when it comes to taxes.

    Their conclusion?
    Land is exempt from VAT.
    Commercial buildings are not.

    So, even if you’re buying land with commercial buildings on it, VAT still applies to the buildings. That’s true even though the land itself is exempt.

    The court also said there’s no ambiguity in the law. Paragraph 8 of the VAT Act is clear — residential premises are exempt, not commercial ones.


    What Didn’t the Court Say?

    While the ruling was clear, there are still some grey areas.

    • It didn’t say if VAT should apply to just the value of the buildings, or to the combined value of land and buildings.
    • It didn’t clarify how to handle VAT for mixed-use properties (those with both residential and commercial space).

    So, there’s still more to be worked out in future cases.

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    What This Means for You

    If you’re buying or leasing commercial property, expect to pay VAT on the value of the buildings.

    And if you’ve bought commercial property in the last few years and didn’t pay VAT? KRA might come knocking. The ruling suggests they could go back five years and issue new tax assessments.


    Final Thoughts

    This decision brings some much-needed clarity to the sector — and reminds all of us how important it is to understand tax rules when dealing with property.

    But for buyers, this also means higher costs when investing in or leasing commercial buildings.

    The story isn’t quite over yet — Ndegwa still has the option to appeal to the Supreme Court.

  • High Court Ruling is a win for Off-Plan Property Buyers

    High Court Ruling is a win for Off-Plan Property Buyers

    A landmark ruling by the High Court has delivered a major victory for real estate investors, setting a precedent for buyers who have suffered delays and quality issues in off-plan developments.

    The ruling favored two buyers, Nizarali Pradhan Sumar and Shehnaz Nizarali Sumar, against VK Construction Limited, after the developer failed to meet contractual obligations regarding the completion and quality of an apartment.

    Case Background

    As reported by buyrentkenya, The plaintiffs signed a sale agreement on April 23, 2015, agreeing to purchase a unit in a 32-unit four-bedroom apartment development for Kshs. 18,800,000. However, despite paying Kshs. 18,860,000, they encountered significant setbacks:

    • Multiple defects in the apartment, including water leakage in all bedrooms and substandard finishing.
    • Delayed handover, with the developer refusing to grant them possession.
    • Uninhabitable conditions, even after eventually gaining access.

    Frustrated by the lack of response from the developer, the buyers took legal action in 2019, seeking justice for the breach of contract.

    Court Ruling and Compensation

    Since VK Construction Limited failed to respond to the completion notice or defend itself in court, the High Court ruled in favor of the buyers, ordering the developer to:

    • Refund Kshs. 18,860,000 (full purchase amount).
    • Pay Kshs. 489,490 for repair and finishing expenses.
    • Compensate Kshs. 150,000 per month for loss of income due to the delay.

    The judgment reinforced the principle that buyers who fulfill their contractual obligations have the right to compensation if a developer fails to deliver.

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    Key Takeaways for Real Estate Investors

    This ruling carries significant implications for anyone investing in off-plan developments. Here’s what you should learn from this case:

    1. Legal Protections Exist – Use Them
      • Many investors hesitate to take legal action against developers, fearing a lengthy court battle. However, this case shows that buyers can successfully claim compensation when developers breach agreements.
      • If your developer is non-responsive, seek legal advice and consider issuing a completion notice before taking legal action.
    2. Due Diligence Is Crucial Before Buying Off-Plan
      • Research the developer’s track record—have they completed past projects successfully?
      • Request for references from past buyers to assess the quality of their work.
      • Verify that the developer has all necessary approvals and permits to avoid legal complications.
    3. Include Strong Contractual Protections
      • Ensure your sale agreement specifies penalties for delays and poor workmanship.
      • Ask for a clear timeline for completion and handover.
      • Include a clause for compensation in case of breach—this can help avoid lengthy disputes.
    4. Monitor Construction Progress Closely
      • Regularly inspect your unit before completion and document defects.
      • Engage a qualified property lawyer or consultant to oversee the process.
      • If the developer refuses to grant access, raise concerns formally via a lawyer.

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    The Bigger Picture

    This ruling is not just a win for the plaintiffs—it is a wake-up call for developers to honor their commitments and uphold quality standards. If more buyers take action against non-compliant developers, it could push the industry towards greater accountability and better construction standards.

    For investors, the message is clear: Be proactive, protect your rights, and do not settle for substandard property deals.


    What’s your experience with off-plan investments? Have you faced similar challenges? Let us know in the comments!