Category: Buyer Guides

  • Hidden Costs when Buying or Selling Property

    When buying or selling land or property in Kenya, there are several additional costs beyond just the purchase price that you need to factor into your budget. Being aware of these extra fees and expenses is crucial for proper financial planning. Let’s go through the main costs involved.

    Agents’ Costs (Commissions)

    If you enlist a real estate agent to help you find a property or a buyer, you’ll be responsible for their commission. Agent fees are generally negotiable but typically range from 2-5% of the sale price. This “commission” fees is separate from the property transfer and legal costs.

    Here is a table of commissions that you should factor in.

    Search (Due Diligence) Costs

    During due diligence, your lawyer may need to obtain several documents, including:

    – An official search from the relevant land registry

    – A certified copy of the greencard from the relevant land registry

    – A certified copy of the Registry Index Map from the Survey of Kenya

    – A Survey Report from a licensed Surveyor

    These costs vary from registry to registry and are typically borne by the buyer. You may also search directly on Ardhisasa.

    Types of Title Deeds and how to obtain them

    Utility Costs

    Ensure that all utility bills, such as water and electricity, are settled by the seller before the transfer of ownership. Unpaid bills can be transferred to the new owner.

    Consents

    1. Land Control Board (LCB) Consent: Required for selling land in “agricultural” areas, with costs ranging from Kshs. 1,000 to Kshs. 20,000 depending on the type of consent.
    2. Management Company Consent (Apartments/Flats):  Apartment or flat dwellers may require approval from the management company, with fees determined by the management company.

    Land Rates and Rent

    – Land Rates: Collected by the County Government where the land is situated.

    – Land Rent: Collected by the Ministry of Lands and Physical Planning.

    – Payment of Accrued Rates and Rent: Ensure that the seller settles all outstanding rates and rent before transfer, as liability shifts to the new owner.

    Stamp Duty

    – Definition: A mandatory tax charged on property transfers in Kenya.

    – Determination: The market value of the property is determined by a government or private valuer.

    – Exemptions: Transfers between spouses, deceased person’s property to beneficiaries, and certain other transactions.

    – Payment: Borne by the purchaser and collected by the Kenya Revenue Authority.

    – Rate: 2% of the property value for rural areas and 4% for urban areas.

    Here is the best guide to stamp duty

    Valuation Costs

    – Purpose: To ascertain the current market value of the property for stamp duty assessment.

    – Costs: Borne by the buyer and may involve government or private valuers.

    – Engaging a specialized/competent Lawyer: Highly recommended for conveyancing and land transactions. The lawyers handle contract negotiations, due diligence, document verification, and registration.

    – Fees: Legal fees are subject to minimums prescribed by the Advocates Remuneration Order, typically starting at 2% or Ksh 35,000, and increase with property value. Additionally, a 16% VAT applies to legal fees.

    Registration Expenses:

    Registration fees for transfer instruments vary by registry and are borne by the buyer.

    Other Possible Costs

    Depending on the transaction, there could be additional costs like stamp duty on the initial sale agreement. Discuss any unique charges with your lawyer upfront.

    Post-Registration Costs

    Capital Gains Tax: Payable by the seller. It is a tax on the profit earned from property transfer. Currently, the rate is 15% of the net gain (sale proceeds minus acquisition and incidental costs).  Exceptions include transfers between spouses, inherited property, or sale of a private residence owned and occupied for three years before sale, land transfers below Ksh 3 million, and agricultural land under 50 acres outside urban areas.

    Conclusion

    Buying or selling land in Kenya involves numerous costs beyond the purchase price. It is essential to budget for these fees to ensure a smooth and successful transaction. Consult with a licensed advocate to guide you through the process and avoid any potential pitfalls.

  • The Best Guide to Real Estate Contracts

    real estate contract is a legally binding document that outlines terms agreed upon when two or more individuals negotiated a real estate transaction. It contains information such as the parties involved, price and terms, contingencies, acceptance date, expiring date, and homestead classification. A real estate contract aims to clarify the home buying process or renting while offering protection to both the buyer and seller.

    Types of Contracts in Real Estate

    1. Purchase Agreement

    A purchase agreement is a contract between a buyer and seller outlining the terms and conditions of the sale of a property.

    The buyer, refers to an individual, a business, or even a real estate agent. Similarly, the seller can be a homeowner, a realtor, or a corporation. 

    Besides elements common to real estate contracts, purchase contracts include the purchase price, earnest money, contingencies, financing terms, and the closing date.

    Depending on the exact details of a transaction, you might need one of the following specific types of purchase agreements. 

    2. Rental Agreement

    A rental agreement is a contract between a property owner and a tenant who wants to take temporary possession. The agreement outlines the terms and conditions under which the tenant can lease the property for a short duration, typically less than a year.

    Key elements of rental agreements include the property description, the rent amount, contract duration, security deposit, utility payments, and termination conditions. 

    There are several types of rental agreements, including the following:

    • Residential rental agreement: A contract between a landlord and tenant outlining the terms and conditions for renting a residential property.
    • Commercial rental agreement: A contract between a landlord and a business tenant outlining the terms and conditions for renting commercial property, such as office space, retail locations, or warehouses.
    • Month-to-month agreement: An agreement that renews monthly until either party terminates, such as a tenant renting a single-family home in Los Angeles, with either party having the right to terminate with a 30-day written notice.
    • Short-term/vacation rental agreement: An agreement to accommodate short stays, typically less than 30 days. For example, newlyweds on their honeymoon renting a vacation rental home through Airbnb.

    The Complete Guide to Rent-to-Own Schemes in Kenya

    3. Lease Agreement

    Lease agreements, like rental agreements, outline terms for the lease of a property. In contrast to short-term rental agreements, lease agreements are long-term contracts

    These are some of the different types of lease agreements:

    Fixed-term lease agreement: An agreement for a specific period, with the tenant committing for the entire term with penalties for premature termination. 

    Lease-Purchase Agreement: A lease-purchase agreement gives the tenant the right to purchase the leased property at a later date. Payment of an upfront option fee gives the tenant exclusive rights to the purchase.

    Absolute net lease agreement: A strict commercial lease where the tenant is responsible for all property-related costs, including base rent, property taxes, insurance premiums, maintenance costs, and structural repairs.

    Sublease agreement: This agreement allows a tenant to rent out all or part of a leased property to another person or business (the subtenant).

    Commercial lease agreement: An agreement for renting property for commercial or business purposes.

    4. Power of Attorney

    A power of attorney agreement is used to grant a person or persons the authority to make legal and financial decisions on another person’s behalf.

    Key agreement elements include the principal (person granting the authority), agent (person or entity getting the authority) and their responsibilities, scope of authority, duration, effective date, incapacity clause (for durable power of attorney contracts), and governing law.

    Depending upon the situation, you can use different power of attorney agreements:

    • General Power of Attorney: Gives broad authority for legal and financial matters
    • Limited Power of Attorney: Grants authority for a specific purpose, such as selling real estate.
    • Durable Power of Attorney: Remains in effect even if the principal becomes incapacitated.

    5. Real Estate Partnership Agreement

    Partners use real estate partnership agreements when they decide to work together to purchase and manage properties.

    Key elements include details of parties involved, capital contributions, ownership structure, responsibilities, profit/loss distribution, decision-making authority, terms of the partnership, buyout clause, and amendments.

    6. Listing Agreement

    A listing agreement is a contract between a property owner and an estate agent/broker that gives the agent the right to list, market, and sell the property on the owner’s behalf.

    Key contract elements include details of parties involved, property description, listing price, agent’s commission, type of agreement, duration, and the responsibilities of the seller and the agent.

    Letters of Authorization to sell in Real Estate

    Key Elements of Real Estate Contracts

    For legal enforceability, a real estate contract must meet the following requirements.

    Offer and Acceptance

    A legal contract requires a party (the offerer) to make an offer the other party (the offeree) accepts. 

    This requirement provides for mutual understanding of the terms of the contract and a clear intention of entering into a legal relationship. It also implies voluntary acceptance, as opposed to acceptance made under duress.

    In the real estate context, for example, a contract would be formed when a  buyer (offerer) makes an offer and a  seller (offeree) accepts the offer. 

    Consideration

    Consideration, in legal terms, refers to something of value. A valid contract involves an exchange of consideration. This exchange provides support to the contract. 

    For example, an owner sells a house in exchange for suitable compensation: the seller’s consideration is the house, and the buyer’s consideration is the money they pay for the house.

    Capacity

    Here, capacity refers to legal capacity, or the valid authority to enter a legal agreement. 

    In personal dealings, a minor, a person under the influence of drugs, or a person unable to understand contract language, does not have legal capacity.

    In business dealings, a person not authorized to conduct business and sign contracts on behalf of a corporation lacks legal capacity. 

    Legality of Purpose

    Another requirement for a valid contract is the legality of purpose and compliance with relevant laws and regulations. 

    Conclusion

    Understanding real estate contracts in Kenya is essential for protecting your interests in any property transaction. Whether you are buying, selling, or leasing, a well-drafted contract, coupled with thorough due diligence, can help you avoid legal disputes and ensure a smooth transaction. 

  • A Comprehensive Guide to the Inheritance Process in Kenya

    In Kenya, inheritance matters, also known as succession, hold significant weight in securing the future of families and loved ones. The process of transferring ownership of assets upon a person’s death can seem complex, but understanding the legal framework and steps involved empowers individuals to navigate this crucial phase effectively. This comprehensive guide delves into the succession process in Kenya, equipping you with the knowledge to ensure a smooth and efficient transfer of property.

    Understanding Succession process in Kenya:

    Succession refers to the legal process of transferring ownership of a deceased person’s estate (assets and liabilities) to their beneficiaries. A well-managed succession process ensures the deceased’s wishes are respected, and their assets are distributed fairly according to the law.

    The Legal Framework: Law of Succession Act (Cap 160)

    The primary legal framework governing succession in Kenya is the Law of Succession Act (Cap 160). This Act outlines the two main types of succession:

    • Testate Succession: This occurs when the deceased leaves a valid will outlining their wishes for the distribution of their estate.
    • Intestate Succession: This occurs when the deceased dies without a valid will. In such cases, the Law of Succession Act dictates how the estate will be distributed.

    Succession process in Kenya: with a Will (Testate)

    If a valid will exists, the following steps outline the typical process:

    1. Locating and Verifying the Will: The original will must be located, and its authenticity verified through a qualified lawyer.
    2. Applying for Probate: The executor named in the will (the person responsible for managing the estate) applies to the High Court for a Grant of Probate. This document officially recognizes the will’s validity and grants the executor the legal authority to administer the estate.
    3. Distributing the Estate: Once the Grant of Probate is obtained, the executor identifies the beneficiaries named in the will and proceeds with distributing the estate assets according to the deceased’s wishes. This may involve selling assets, settling debts, and ultimately transferring ownership to the beneficiaries.

    Succession process in Kenya: Without a Will (Intestate)

    When there’s no valid will, the process becomes more complex:

    1. Applying for Letters of Administration: An interested party (spouse, child, or close relative) applies to the High Court for a Grant of Letters of Administration. This document empowers the appointed administrator (usually the applicant) to manage the estate.
    2. Identifying Beneficiaries: The administrator, with the court’s guidance, identifies the beneficiaries entitled to inherit according to the Law of Succession Act. This hierarchy prioritizes spouses, children, and dependent relatives.
    3. Distributing the Estate: Similar to testate succession, the administrator distributes the estate assets after settling debts and taxes. However, the distribution adheres to the predefined order of intestate succession outlined in the Act.

    Important Questions in the Succession Process

    How Succession of Land is Done in Kenya?

    The process of inheriting land in Kenya depends on whether the deceased left a will (testate) or not (intestate).

    • Testate Succession: The will clearly specifies how the deceased wishes their land to be distributed. The executor named in the will applies for a Grant of Probate, which grants them the legal authority to manage the estate and transfer land ownership to the beneficiaries as outlined in the will.
    • Intestate Succession: The court identifies beneficiaries according to the Law of Succession Act’s order of priority (explained below).The appointed administrator applies for a Grant of Letters of Administration, authorizing them to manage the estate and distribute land ownership following the Act’s guidelines.

    Documents Required for Land Succession process in Kenya

    Here are some of the key documents required for land succession in Kenya, though the exact list might vary depending on the specific case:

    • Deceased’s original death certificate
    • Deceased’s national ID card (copy)
    • Original land title deed
    • Applicant’s (executor or administrator) national ID card (copy)
    • A copy of the valid will (if applicable)
    • Affidavits from witnesses (if applicable)
    • Proof of any existing loans or encumbrances on the land
    • Payment receipts for stamp duty and land registry fees

    How Much Does the Succession Process in Kenya Cost?

    The cost of succession in Kenya can vary depending on several factors, including:

    • Value of the estate: Stamp duty, a tax on the value of the estate, increases as the land value rises.
    • Complexity of the case: Unforeseen complications or disputes can lead to higher legal fees.
    • Lawyer’s fees: The lawyer’s experience and the complexity of the case will determine their fees.

    Here are some estimated figures to provide a general idea:

    • Stamp duty: This can range from 1% to 4% of the land’s market value
    • Lawyer’s fees: Basic cases might start around KES 50,000 (USD 450), with complex cases reaching KES 200,000 (USD 1,800) or more.
    • Court fees: These are typically nominal, around KES 1,000 (USD 9) for filing applications.

    Order of Priority in Succession

    The Law of Succession Act outlines a specific order of priority for inheriting assets, including land, when someone dies without a will (intestate succession):

    1. Spouse: The surviving spouse inherits a specific portion of the estate, with the remaining portion distributed amongst the children.
    2. Children: If there’s no surviving spouse, the children inherit the entire estate in equal shares.
    3. Dependants: If there’s no spouse or children, dependant relatives like parents, siblings, or grandchildren may inherit.
    4. The Government: In the absence of any legal heirs, the estate, including land, reverts to the Kenyan government.

    Important Considerations in the Succession Process

    • Tax Implications: There may be inheritance tax implications on the estate, which the executor or administrator needs to address before distributing assets.
    • Disputes and Conflict Resolution: Disagreements amongst beneficiaries can arise. Seeking legal guidance and mediation can help resolve such conflicts.
    • Timeframes and Legal Fees: The succession process can take several months to complete, depending on the complexity of the estate. Consulting a lawyer can expedite the process and ensure it’s handled efficiently, although legal fees will apply.

    Conclusion: The Importance of Planning and Legal Advice

    A well-planned succession process, whether through a properly drafted will or understanding the intestate succession laws, can significantly benefit families. It ensures a smoother transfer of assets, minimizes potential conflicts, and honors the deceased’s wishes. Consulting a qualified lawyer experienced in Kenyan succession law is highly recommended. They can guide you through the legal intricacies, provide personalized advice based on your specific circumstances, and ensure a successful conclusion to the process.

  • Ultimate Guide to Property Succession in Kenya

    Legally, this term refers to succeeding the rights of another person especially property and transferring the ownership rights from the deceased to the one living. In other terms, this is also known as the law of inheritance.  Each country has laid down rules and regulations that guide how succession is done. The laws of Kenya stipulate what happens after a person dies what to be done for the transfer to be legal.

    Importance of succession planning

    Planning for succession is very important for each and every person who owns assets. There are various ways benefits that you stand gain when you have a plan for your property succession.

    Sense of security

    This is the state of being worry free and having surety that in case of illness or untimely death your property is safe.  Further, death being unpredictable, you may be having plans in place on what to do it the property and when you have a succession plan this can go on without much interruption. This is possible because you have made identification of people who have your interests and are ready to decide on your behalf.

    Gives your property to rightful claimants

    When death happens there is a likelihood of having several claimants in the same property. With a clear succession plan in place, the chances of having conflicts is near zero thus ensuring the rightful claimants get the legal ownership. This is why you should plan early to avoid property feuds that can face your children and dependants.

    It is a powerful tool for dispute resolution

    Disputes involving property can be messy and at times end up in death or prolonged court cases. However, when we have two people claiming ownership of a property and we have a succession plan it place, it acts as the tool for resolving the dispute.

    Enables significance reduction of unclaimed assets

    Unclaimed assets are valuable items that continue to lie idle without any legal claims by the rightful owners. When you are having a succession plan in place, chances are you will reveal the properties you own to your beneficiaries and in case of death they can claim ownership. When there is no plan, the likelihood of them becoming unclaimed is high.

    Types of Property Succession

    Property succession exists in two main types: testate and intestate succession. In this section, we are going to explore each of the two so that at the end of this article, you have all the information you need when planning. It is important to note that that each country has laws regulation how succession is done.

    Testate succession

    Testate succession when a person dies and has left behind a will. A will is the legal declaration of how a person would desire his or her property is handled after they die. Having a will is very important as it gives you the ability and control of how you would wish your property distribution. Further, it avoids family wrangles surrounding property that may prolong in a court of law.

    There are two types of wills: oral and written will. The validity of wills lies on the presence of witnesses. For an oral will, it has to be witnessed by two or more witnesses of sound mind of full age. For written will, the validity is pegged on signatures of two or more witnesses with competence.

    It is important to note that the will has no legal effect until the maker dies. While he or she is alive, it neither limits his rights of ownership nor confers any benefits to anyone. Beneficiaries under a will do not acquire an interest in the property before the testator’s death. The following are the reasons why you should consider writing a will today:

    1. You will protect your family and those you love
    2. A will helps to avoid unnecessary court cases
    3. Prevents family disputes
    4. Give you liberty to select the person to manage your property
    5. You decide who will take care of your children
    6. Improves your overall mental health
    7. Saves time and costs that may come as a result of court cases

    Intestate succession

    This is a type of succession when one dies without a will or the will is contested and faces invalidation. There are numerous ways provided by law on how succession should happen in such a case

    Married and with children

    The spouse has a right to personal and household items. In addition, they have life interest to property, however, this ends in case they marry another person. Further the children still have a right to the property.

    Married with no children

    The spouse gets all personal and household belongings up to the first $100 OR 20% of the estate whichever is bigger. However, in case they choose to remarry the interest to the properties come to an end.

    Not married and have children

    The children have rights to the entire property once the attain the age of 18 years which is considered adulthood.

    Not married with no children

    In this case the property goes to family members in this order:

    • Father, if not alive
    • Mother, if deceased
    • Brothers and sisters equally, is still deceased
    • Step brothers and sisters, if not alive
    • Relatives close to you, if not alive
    • The property goes to the state

    Differences between probate and succession?

    This is the process which transfers ownership of the property such as a title deed from the deceased person to those who inherit. A succession is the process of settling a deceased person’s estate and distributing the property to those who inherit after the debts are paid. This process is called probate in other states.

    Bottom line

    Succession planning is very important for everyone who owns land. We believe this content will help you make more solid decisions around your properties and estates so that you avoid legal cases that can come after death. 

  • The Ultimate Guide to Pricing Your Home for Quick Sale

    Are you planning to sell your home? One of the most critical decisions you’ll make is setting the right price. Pricing your home too high can lead to a lengthy selling process while pricing it too low means you’ll miss out on potential profits.

    So, pricing your home just right is all about balance. It’s kind of like baking a cake. Too hot, and you burn it. It’s too cool, and it ends up undercooked. We want that perfect, golden temperature where everyone wants a slice.

    In this comprehensive guide, we’ll explore tips for pricing your home competitively to attract potential buyers and maximize your profits.

    Step 1: Research, Research, Research

    Think of pricing as both an art and a science. You want to lean on data, but you also need a gut check. Start by looking at what similar homes in your neighborhood are selling for.

    Why does this matter? Well, if three homes on your street sold for around $300,000, but you list yours at $350,000 with the same number of bedrooms, square footage, and features, buyers might skip right past you. On the other hand, if your home is packed with upgrades and outshines those comps, you can justify a slightly higher asking price.

    Step 2: Factor in Market Conditions

    Local market conditions can feel a bit like the weather—sometimes sunny and warm, other times stormy. But hey, that’s real estate!

    Seller’s Market: If there are more buyers than available homes, you can often list a bit higher. Think of a seller’s market like a hot day at the beach—everyone wants a spot, and there’s limited space on the sand.

    Buyer’s Market: More listings than buyers? You’ll need to be more competitive with your price. It’s similar to heading to a big beach on a chilly day—people are less eager to show up, and you need to give them a good reason to pick your spot over someone else’s.

    5 Crucial Factors to Consider When Selling a Property

    Step 3: Consider Professional Valuations

    If you want the gold standard in figuring out your home’s value, consider hiring a professional valuer. Yes, it can cost a few hundreds, but sometimes that peace of mind is worth every penny. A valuer will walk through your home, note its condition, compare it to recent sales, and factor in local market conditions to give you a detailed report.

    Step 4: Tweak the Number Based on Your Home’s Unique Features

    Let’s say your home has something special—maybe you’ve got a fantastic outdoor deck overlooking a lake, or you just finished a fancy kitchen renovation. Don’t forget to add a bit of value for these features! But be careful. You might love your koi pond and the custom water fountain that came with it, but not every buyer will share the same enthusiasm. Personal touches can be a double-edged sword.

    Here are a few features that often justify a higher price:

    • Recently Remodeled Kitchen: Buyers often pay a premium for high-end appliances, granite countertops, or custom cabinets.
    • Renovated Bathrooms: Outdated bathrooms can turn buyers off, so a fresh look can help you stand out.
    • Outdoor Living Spaces: Decks, patios, and landscaping add a ton of curb appeal.
    • Energy Efficiency: Solar panels, double-pane windows, and updated insulation can draw eco-conscious buyers who are willing to pay more.

    How to write attention grabbing property descriptions

    Keep it real, though. A fancy chandelier or bold color choices might not add thousands of dollars in value. Focus on the improvements that make your home more functional, comfortable, and appealing to a wide range of people.

    Step 5: Test the Waters and Adjust if Needed

    I know, it’s easier said than done. You’ve built memories in this house. Maybe you brought your puppy home here or hosted your first Thanksgiving dinner. It’s understandable to feel sentimental and assume your home is “worth more.” But buyers won’t always share that emotional connection.

    When you set your asking price, try to step into the buyer’s shoes. Look at your home objectively and ask yourself: “If I were seeing this for the first time, and I had a few options in this price range, would I pick this one?”

    If your home’s been on the market for a few weeks and you’re not getting any bites, it might be time to revisit your pricing strategy. There’s no shame in making an adjustment.

    here are signs You Might Need to Adjust Your Price:

    • Hardly any showings or inquiries
    • Multiple showings but zero offers
    • Consistent feedback that the price is too high compared to similar properties

    Listen to the market’s feedback. If people love your home but say the price is too high, that’s a clear sign. Don’t let pride keep you stuck.

    At the end of the day, remember that pricing isn’t a one-and-done kind of deal. The market can change, and your life circumstances might shift. Maybe you realize you need to move sooner than expected, or you notice that the local market is suddenly heating up. Keep an ear to the ground and be willing to pivot if necessary.

  • Simple Guide to Pay Stamp Duty with Ardhipay (Ardhisasa)

    Initially, for one to pay stamp duty, one had to log into the iTax portal of the individual required to pay for the stamp duty; key in the necessary details of the property in question such as the price, names of the vendor and purchaser, title number, the location of the property and finally the assessed amount. This would in turn generate a Payment Registration Number (PRN) which would be used when making the stamp duty payment.

    To make stamp duty payments, you

    1. Log in to the Ardhisasa platform: Just go to the Ardhisasa platform and log into your account. If you don’t have one, go ahead and create it.
    2. Select ‘Ardhipay’ by clicking on the ‘Ardhipay’ option.
    3. Select the ‘Stamp Duty  option. Then click on either Land Stamp Duty or Non Land Stamp Duty. Then navigate to the ‘New Application’ button and select this option.
    4. Initiate the transaction you are making. You then proceed to fill in the details needed for you to be able to apply. Once this is done you apply and pay the transaction/convenience fee.
    5. The Land Registration Department will then review the application and if it is in order, it will be forwarded to the Assessment/Valuation Department. Here they will either visit your property for physical valuation or use a scale for similar properties located in the same area.
    6. On completion of valuation/assessment, an invoice will appear under the “Invoices” tab of the application you are handling. The invoice will give you the option to either pay or view the amount that has been assessed. Click on pay and make the payment via your preferred mode.

    What is Stamp Duty?

    This is tax levied on legal instruments such as land transactions, agreements, shares, among other instruments.

    How do I pay Stamp Duty on Ardhisasa?

    • Log-in to ‘Ardhisasa’.
    • Click on the ‘Ardhipay’ option.
    • Click on ‘Stamp Duty Self Assessment’.
    • Navigate to the ‘New Application’ button and click on it.
    • Provide the relevant information & documentation needed and click on ‘Submit’.
    • Once the invoice has been generated, click on the ‘Pay’ button.
    • Choose a payment method & follow the instructions therein.

    What payment methods are accepted by the system?

    The system accepts a variety of payment methods, including:

    • M Pesa
    • M Pesa Express
    • Pesaflow Direct
    • Kenya Commercial Bank
    • Real Time Gross Settlement (RTGS)
    • Airtel money

    What is the cost of paying stamp duty?

    The payment processing is facilitated through e-citizen, and for each generated invoice, there is a convenience fee of 50 shillings.

    What should I do if my payment fails or is declined?

    At Ardhisasa Customer Care, we understand that payment hiccups can happen for a variety of reasons, and we’re here to assist you. If you encounter a payment failure, which can sometimes be due to factors like insufficient funds or payment method issues, we kindly advise you to review your payment details carefully and make another attempt. If the issue continues to persist, please don’t hesitate to reach out to our dedicated customer support team for prompt assistance.

    How can I view my payment history and receipts?

    To view your payment history and receipts, simply log in to your account and head to the “Ardhipay” section located on the left-hand panel of the system. In this section, you will find two tabs: “Unpaid Invoices” and “Paid Invoices.” These tabs provide a comprehensive summary of all your payments, both those that have been paid and those that are still outstanding.

    Important Payment Guidelines

    • Ensure your payment matches the exact invoice amount to avoid overpayments or partial payments.
    • Verify the invoice reference number and accurately input it during the payment process.
    • Direct all payments to the authorized account as specified in the provided payment instructions.
    • Previous accounts have been suspended and should not be used for any further payments.
    • Before submitting an invoicing application, it’s crucial to double-check all payment details. Key identifiers, such as the parcel number and uploaded documents, must be accurate. Any mistakes in these details could result in lost payments, so please verify them carefully before proceeding.

  • Former CS Aisha Jumwa in Sh250 Million House Dispute

    Former CS Aisha Jumwa in Sh250 Million House Dispute

    Former Cabinet Secretary for Gender, Aisha Jumwa, is currently facing a legal battle over a Sh250 million house she purchased last year. The dispute involves Bejav Furniture Limited, which has taken the matter to court, seeking to compel Jumwa to pay an outstanding Sh60 million, part of the agreed purchase price.

    Bejav Furniture initially pursued a bankruptcy declaration against Jumwa but the case was referred to mediation. The saga began when Jumwa, who was sworn in as Cabinet Secretary on October 27, 2022, approached Roselyn Wambui in February 2023 to buy her property, initially valued at Sh250 million. After negotiations, the price was reduced to Sh215 million.

    Wambui claims she instructed her lawyer, Kinyanjui Kirimi & Company Advocates, to prepare the sale agreement, which was sent to Jumwa’s legal representatives at Mohamoud, Gitau & Jillo LLP Advocates on February 25, 2023. Jumwa’s legal team acknowledged the agreement but informed Wambui that the purchase would be financed through a loan.

    Read: Developers Given 1 Year to Comply with New Building Code

    It later emerged that Jumwa could only secure Sh145 million in financing from Kenya Commercial Bank (KCB). Consequently, Jumwa’s lawyer suggested an addendum to the agreement to account for the Sh70 million balance, which was not covered by the loan.

    According to Wambui, there were specific decorations and furnishings in the house that she was supposed to remove, as stated in the addendum. Jumwa agreed to pay the remaining Sh60 million over 12 months, a term that was included in the initial draft agreement.

    Wambui claims she transferred ownership of the house to Jumwa, who then used it as collateral for the KCB loan. However, after receiving the Sh10 million down payment, Wambui says she received no further payments from Jumwa. Despite repeated demands for the outstanding balance, Wambui alleges that Jumwa has ignored her requests, leading to a breach of contract.

    Wambui’s lawyers initiated a debt recovery case, which included an attempt to have Jumwa declared bankrupt. However, this case is currently pending mediation or settlement, with Wambui expressing frustration at the lack of progress.

    Also read: Here is why Home Africa is in administration

    Wambui is now seeking a court order compelling Jumwa to pay the outstanding amount plus 18.5 percent interest until it is fully settled. In response, Jumwa has filed an objection, arguing that the court lacks jurisdiction over the case. Her lawyers, led by Prof. Tom Ojienda, assert that the original agreement between the parties stipulated that any disputes would be resolved through arbitration, not litigation.

    Jumwa is also requesting that the court dismiss the case and order Wambui to cover the legal costs.

    Trending: Landlord Comes up with a New Way to Make Tenants pay Rent Arrears

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  • Developers Given 1 Year to Comply with New Building Code

    Developers Given 1 Year to Comply with New Building Code

    The Kenyan construction industry is entering a new era with the launch of the National Building Code 2024. Developers or construction industry practitioner have just one year to align their projects with these new regulations, which are set to revolutionize the way buildings are designed, constructed, and maintained in Kenya.

    Since 1968, Kenya has relied on outdated building codes that have struggled to keep pace with modern construction demands. The use of substandard materials, poor workmanship, and the flouting of zoning rules have contributed to the alarming number of building collapses and other construction-related incidents. The Building Code 2024 marks a significant departure from these old practices, offering a comprehensive framework that incorporates current technological advancements and sustainability principles.

    The new code introduces several groundbreaking provisions that aim to modernize the construction industry in Kenya.

    Read: Here is why Home Africa is in administration

    • Piping Networks for LPG Gas: The new regulations require the integration of piping networks for the supply of LPG gas in new buildings. This is a crucial safety measure designed to reduce the risks associated with improper gas installations.
    • Fiber Connectivity: Recognizing the importance of digital infrastructure, the code mandates the inclusion of fiber optic networks in new constructions. This provision is essential for ensuring that buildings are equipped to meet the demands of Kenya’s rapidly digitizing economy.
    • Sustainable Green Building Materials: The use of environmentally friendly and sustainable building materials is now a requirement. This shift not only promotes the conservation of resources but also aligns with global trends in eco-friendly construction practices.

    The National Building Code 2024 also signifies Kenya’s move away from colonial influences in its construction regulations. The new code sets local standards that are tailored to the country’s unique needs and challenges. This change is expected to bring about orderly and coordinated development across the nation, ensuring that new constructions are safe, durable, and aesthetically pleasing.

    Also read: Landlord Comes up with a New Way to Make Tenants pay Rent Arrears

    One of the major benefits of the new code is the emphasis on professional maintenance of building stock. Regular maintenance is critical to ensuring the longevity and safety of structures, and the new regulations make this a priority.

    Moreover, the code addresses the need for digital connectivity, a crucial aspect that was absent in the 1968 regulations. In today’s digital age, having reliable data and communication networks is vital for both residential and commercial buildings. The inclusion of fiber connectivity provisions ensures that new buildings are equipped with the necessary infrastructure to support these needs.

    The affordable housing program, a flagship initiative of the Kenyan government, is being positioned as the ideal platform to showcase the impact of the Building Code 2024. By implementing the new regulations in these projects, the government hopes to set a standard for future developments. Once complete, these buildings will demonstrate how the new code can lead to safer, more sustainable, and digitally connected housing options for Kenyans.

    Also read: How to Replace a Lost Title Deed in Kenya

    The repeal of the previous Physical Planning Act is another critical step in the implementation of the Building Code 2024. This move is expected to harmonize regulations between county and national governments, ensuring a consistent and nationwide approach to construction practices. The introduction of mobile units to test the quality of construction on-site further underscores the government’s commitment to enforcing the new regulations.

    The National Building Code 2024 is a bold step forward for Kenya’s construction industry. It not only addresses the shortcomings of the outdated 1968 code but also positions Kenya at the forefront of modern, sustainable building practices. As a developer or industry practitioner, it is crucial to familiarize yourself with these new regulations and ensure that your projects comply within the stipulated one-year timeframe.

  • How to Replace a Lost Title Deed in Kenya

    How to Replace a Lost Title Deed in Kenya

    Losing a title deed can be an overwhelming experience, but it’s important to remember that all is not lost. Whether due to theft, misplacement, or unforeseen circumstances, a missing title deed can be replaced through a clear and structured legal process in Kenya. Instead of panicking, you can take the necessary steps to recover this crucial document, ensuring your property rights remain intact. This guide will walk you through the process, providing peace of mind and practical solutions for getting a new title deed in hand.

    Why Should You Replace a Lost Title Deed?

    A title deed is one of the few legal documents that prove land ownership. Without it, you could find yourself in a difficult situation. While there’s no specific timeframe for reporting the loss in Kenya, it’s wise to act quickly. Immediate action can prevent potential fraud or unauthorized transactions involving your property. As soon as you realize your title deed is missing, you should begin the replacement process.

    Read: How to Do an Online Title Deed Search In Kenya

    Steps to Replace a Lost Title Deed

    • File a Police Report

    The first thing you should do when you lose any formal document is to report it to the nearest police station. This creates an official record, which could be crucial if any issues arise regarding your property. You’ll need to provide the police with the deed number or a photocopy, along with your original ID or passport. The police will then issue an abstract, which is necessary for the following steps. Before moving on to the next step, a search will be conducted to confirm your ownership of the lost or damaged deed.

    • Swear an Affidavit

    Kenyan law requires that you and any other involved parties swear an affidavit explaining how the title deed was lost or misplaced. This legal document will support your application for a replacement deed.

    • Apply for a New Title Deed

    You or your representative must then submit an application for a new title deed. The following documents are required:

    • The police abstract you obtained.
    • Certified copies of your ID or passport.
    • Certified copies of the certificate of incorporation (if the property is owned by a company).
    • Certified passport-sized photos.
    • An official search report from the Lands Registry.
    • You will also need to pay the required application fee at this stage.

    Also read: Types of Title Deeds In Kenya and How to Obtain Them

    • Gazette Notice

    The Lands Registrar will publish a gazette notice in at least one widely circulated national newspaper, announcing the intention to replace the lost title deed. This notice allows anyone with objections 60 days to come forward.

    • Provisional Certificate

    If no objections are raised during the 60-day period, the Registrar will issue a provisional certificate. This serves as a temporary title deed while you wait for the permanent one to be prepared.

    Tips for a Smooth Replacement Process

    • Start Early

    Don’t wait until you desperately need the title deed to begin the replacement process. Start as soon as you realize it’s missing.

    • Seek Professional Help

    Consider hiring a registered advocate to guide you through the process. Legal professionals can help minimize errors and expedite the process.

    • Keep Records

    Maintain detailed records of all communications with the Lands Registry and other relevant parties. Regularly follow up on the status of your application.

    • Secure Storage

    Going forward, be more careful with essential documents. Many banks offer safekeeping services for a small annual fee—consider using them to store your title deed securely.

    • Estimated Costs

    Replacing a title deed can cost between KES 10,000 and 20,000, depending on various factors. Below is a breakdown of approximate costs:

    • Affidavit and police abstract: KES 3,000
    • Gazette notice: KES 3,400
    • Advertisement in the dailies: KES 2,000
    • Application for a new title deed: KES 3,000

    Following these steps will help ensure a smooth process with minimal delays in replacing your lost title deed.

    Thinking of buying land in Kenya?

    See Key Steps in the Process of Buying Land in Kenya

  • Here is why Home Africa is in administration

    Here is why Home Africa is in administration

    Home Africa, a real estate firm grappling with substantial debt, has entered administration following prolonged financial challenges. According to a gazette notice dated July 23, 2024, the company’s directors have been stripped of their rights to manage or transact with the company’s assets.

    Messrs Kamal Anantroy Bhatt and Dhir Kamal Bhatt of Anant Bhatt LLP have been appointed as Joint Administrators, effective May 13, 2025. This move is in line with Section 563(2)(b) of the Insolvency Act, 2015 of Kenya.

    Read: Nairobi Areas Experiencing Rent Price Drops Due to Economic Strain

    Previously, Home Africa had sought to address its financial woes through various measures, including establishing a committee for debt restructuring, business continuity, and organizational restructuring. The company attempted to mitigate its financial difficulties by selling off assets such as housing units and land. Despite these efforts, the firm still struggled to manage an outstanding Sh79 million loan from I&M Bank.

    Also read: Landlord Comes up with a New Way to Make Tenants pay Rent Arrears

    The company’s directors had planned to sell housing units from the Mitini Scapes Development in Kiambu and Lake View Heights in Kisumu as part of their debt restructuring strategy. However, with the new administration in place, those with claims against the company are now advised to submit their claims to the administrators for review. The appointment of the administrators means that the directors no longer have authority over the company’s assets or management.

    In 2016, Home Africa announced a strategic shift from focusing solely on real estate development to incorporating property management and real estate agency services into its business model.

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