Buying land in Kenya as a foreigner is possible but subject to several
limitations of property ownership. These limitations can be found in the
Constitution (2010) and the Land Control Act (Cap 302). According to the
Constitution, a “person who is not a citizen may hold land on basis of
leasehold tenure only, and any such lease, however granted, shall not exceed 99
yearsâ€. On expiry of the leasehold
term, a renewal of the
lease may be sought.
On the passing of the Constitution in 2010, any foreigner holding
freehold land in Kenya had their title automatically converted to a leasehold
title with a remainder interest deemed to expire after a maximum of 99 years. Thereafter, the interest reverts to the Government of Kenya which holds the reversionary interest.
Can foreigners
own Agricultural land in Kenya?
Agricultural land or land
within land control areas in general terms, is land that is situated outside a
municipality, a township, or a market or land that the Minister of Lands
designates as being controlled and subject to the protections in the act.
Under the Land Control Act
(CAP 302), foreigners are not permitted to own agricultural land unless a
special dispensation has been obtained from the President or if the land is an initial grant from the government.
The greatest exemption is that a public company can own agricultural
land even if some of its shareholders are foreigners.
What if a
foreigner partners with a Kenyan private company to buy land?
For a company to own freehold property, the company must be FULLY owned by one or more Kenyan citizens.
A company for purposes of property ownership, is regarded as a Kenyan
company only if it is wholly owned by one or more Kenyan citizens. Therefore,
a private company with one or more foreign shareholders is regarded as a foreign
company and cannot own freehold land.
Can foreigners own freehold land through a Trust?
A trust is an arrangement where the owner of property transfers it to
the ownership of another person, on condition that the trustee uses the
property only for the benefit of others (the beneficiaries).
In summary,
foreigners can own:
· Leasehold property and can apply for lease renewal.
· Apply for an exemption to own freehold property and once approved, this
is published in the Kenya Gazette.
· Own agricultural land indirectly through owning shares in a public
company that owns agricultural land.
Please note that such transfers are still subject to the
normal process
of buying and selling land in Kenya. And remember
to pay your taxes! Please note that this guide has only covered land
and did not cover other real property like apartments, houses and other
immovable property. A specific guide is available for such including how a
foreigner can transfer property to a Kenyan citizen.
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