Website design By BotEap.comHowever, a process that should be straightforward as it is guided by comprehensive land and property laws, buying and selling real estate in Kenya is far from straightforward. Instead, buyers have to deal with slow paperwork processes marred by corruption, where buyers have to meet the right people or offer bribes to speed things up.

Website design By BotEap.comAll hope is not lost, with the extensive implementation of new reforms such as the new land reform, the buying and selling of property in Kenya will improve and existing laws will be applied to the letter.

Website design By BotEap.comTo ensure that you comply with Kenyan laws governing real estate transactions and to avoid pitfalls such as being scammed, it is recommended that you seek legal representation when buying or selling property in the country.

Website design By BotEap.comProperty registration

Website design By BotEap.comIn Kenya, land is registered under:

• The Land Law
• National Land Commission
• Land Registry Law; offering registration in all districts

Website design By BotEap.comLand Control Law

• Formulated under the Land Control Act, land control boards are prohibited by law from giving consent to transfer agricultural land to companies and individuals who are not eligible to own it.

Website design By BotEap.comForeign and local real estate investment in Kenya: the process

Website design By BotEap.comUnder the new Constitution, non-citizens and companies with non-citizen shareholders are prohibited from owning freehold property. The law allows them to own properties on lease for a period not exceeding 99 years.

• Both local and foreign real estate investors are permitted by law to purchase residential and commercial real estate located in towns and municipalities without any restrictions, provided they adhere to established legal procedures.
• However, foreigners and private companies with shareholders who are not Kenyan citizens are prohibited by law from purchasing agricultural land, except where such purchase is exempted by the provisions of the Land Control Act, SEC 24.

Website design By BotEap.comProperty ID

Website design By BotEap.comOnce an investor has searched for and identified a suitable property, they should endeavor to visit and evaluate the real estate to ensure that:

• actually exists
• It meets your needs and expectations, such as physical location and access to infrastructure.
• Its conditions are favorable and it is worth investing

Website design By BotEap.comNote: a viewing fee applies when viewing properties for sale. Fees vary by type and size.

Website design By BotEap.comCarrying out the necessary search

Website design By BotEap.comAn attorney or the buyer must then obtain copies of the seller’s National Identity Card and property title and conduct the required searches at the land office and the Persons Registry Office.

• This step is very important to verify that said owner is truly the owner of the property.
• To conduct the search, you are required by law to submit a copy of the property title and a search request form and present them at the registry.
• The charges for the search of requirements are Ksh500.
• The cadastre obtains the results in 2-3 days.

Website design By BotEap.comSearch results should show

• The registered owner of the property
• property size
• Any pending matters registered against the property, such as court orders, warnings and prohibitions, etc.

Website design By BotEap.comIn addition, it is important:

• Verify if the property is illegally or irregularly acquired as contained in the Ndung’u Land Report submitted by the Commission of Inquiry on Illegal and Irregular Assigned Lands.
• Provide a registered surveyor not only to set the markers on the property, but also to check the land at the Survey Office.

Website design By BotEap.comNegotiation and sale agreement

Website design By BotEap.comSatisfactory preliminary checks must be followed by negotiations on the terms of sale between the buyer and the seller with the presence of their respective legal teams.

• Negotiations involve discussions about the price of the property and payment terms.
• 10% of the total amount is paid in advance as a down payment and the balance is due upon completion of the sales transaction.
• Agreement of terms by both parties establishes the basis for the preparation of a sales agreement by the seller’s attorney, who then seeks the seller’s approval.

Website design By BotEap.comA sales contract contains

• Terms of sale
• purchase price
• Payment conditions
• Payment completion period
• Termination documents that facilitate the transfer of ownership
• The law firm’s terms of sale are often included

Website design By BotEap.comWhen both parties agree to the sales agreement, they execute it with the buyer’s signature first and then the seller’s. Finally the money changes hands.

• A stamp duty of Ksh 200 is then obtained from the land office, as required by law, to ensure that, in the event of a dispute, the signed documents are admissible in court.

Website design By BotEap.comTransfer of ownership of property and stamp duty

Website design By BotEap.comOnce the buyer’s attorney has prepared the transfer, both parties approve and sign.

1. The seller is responsible for acquiring all the necessary documents to register the property to the buyer.
2. The buyer is then responsible for stamp duty payable to the Kenya Revenue Authority in accordance with Chapter 480 of the Stamp Act of the Laws of Kenya.
3. Prior to assessment of the tax, the seller must apply for an appraisal of the property by submitting the signed appraisal form for stamp duty and the property transfer form to the Land Office.
4. A stamp duty return, assessment, and proof of payment is then completed at the Land Office.

Website design By BotEap.comOnce the stamp duty is obtained and the transfer process is complete, the transfer documentation is required by law along with the following documents to be recorded for the record:

• Original title deeds
• Stamp duty return
• Evaluation form and admission ticket
• Territorial Fee Settlement Certificates
• Transfer consents
• Valuation form for stamp duty

Website design By BotEap.comProperty registration: the final stage of property transfer

Website design By BotEap.comWhen the buyer obtains the transfer of the registered property, the law advises to verify the registration of the same by carrying out a property registry.

Website design By BotEap.compermission to develop

Website design By BotEap.comIn case the owner intends to develop the purchased property, he must go to the relevant local authority and obtain the required development authorization.

Website design By BotEap.comOften the owner will be asked to:

• Commission an environmental impact assessment report to determine if the planned development has adverse environmental effects
• Obtain an environmental license from the environmental agency-NEMA.