Tips for Buying Land in Kenya – A Guide for Locals and Diaspora
Buying land can be a great investment, whether you plan to build a home, start a business, or simply hold the property for future appreciation. However, the process of purchasing land in Kenya can be complex, especially if you live abroad. This guide will walk you through the key steps to help ensure a smooth and secure transaction.
Do Your Homework
Before even starting your land search, it’s crucial to define your goals and budget. Are you looking for residential, commercial, industrial or agricultural land? How much can you realistically afford to spend? Having a clear purpose and financial parameters will help narrow your search.
It’s also wise to research different areas and understand zoning restrictions. Some land can only be used for specific purposes like farming or residential housing. Buying land without the proper zoning can lead to costly hassles down the road.
Certain locations merit extra caution too, such as properties next to major highways, government facilities or flood-prone areas. Speaking with locals familiar with the area can provide invaluable insights.
Hire Professional Support
While anyone can help identify potential properties, it’s highly recommended to enlist some professional expertise for the actual purchase process. A licensed conveyancing/ real estate lawyer can guide you through the legal requirements, draft the purchase agreement, conduct due diligence on the title, and ensure the transfer is properly registered.
A surveyor can confirm the actual boundaries and size of the land match what is described in the title deed. And a property valuer can assess whether the asking price is fair and in line with current market rates for that area.
While hiring these professionals does incur costs, they are worthwhile investments to protect your interests and avoid future disputes or legal issues.
Verify the Seller
Before getting too deep into negotiations, take steps to validate that the person purporting to sell the land is in fact the rightful owner. For individual sellers, request a certified copy of their national ID and title deed listing them as the owner.
If the seller is a company, get certified copies of their incorporation documents, the company registry detailing the current directors, and confirm the title is indeed under the company’s name.
It’s also advisable to meet the seller in person during a site visit and, if possible, speak with neighbouring residents who may know more about the history and ownership of the land.
Structure the Deal Carefully
Once you’ve identified a desired property and confirmed the seller’s legitimacy, it’s time to negotiate the terms of the sale. A proper purchase agreement drafted by your lawyer is critical to protecting your interests.
The agreement for sale should clearly specify the sale price, deposit amount if any, payment timelines, and what documentation the seller must provide – like the original title deed, land board consent if required, spousal consent if applicable, and any other records needed to complete the transfer.
To safeguard your funds, avoid paying the seller directly. Instead, use an escrow account managed by your lawyer, who can issue the payment only once all the terms of the purchase agreement are fulfilled.
If you are abroad and unable to visit Kenya in person to complete the sale, your lawyer can coordinate getting signatures witnessed and documents certified to finalize everything remotely.
Buying land from a subdivision or off-plan development warrants additional diligence on the developer’s history, approvals and construction milestones before releasing funds.
Register and Secure Your Land
Once the purchase agreement is executed, your lawyer will submit the transfer documents for official registration under your name at the lands ministry office. Stamp duty taxes must also be paid at this stage.
After registration is complete, your lawyer should obtain a new search and certified copy of the updated title deed listing you as the official landowner. This final step solidifies your legal claim to the property.
If purchasing as part of a chama (investment group), it’s advisable to register the land under the group’s incorporated entity to mitigate future challenges distributing ownership shares. (Read more about the best way for a chama can buy land in Kenya).
For those buying property from abroad, Kenyan law allows non-citizens and diaspora residents to directly own land, with a few exceptions around leasehold terms that your lawyer can explain.
By doing your research, hiring qualified professionals, carefully vetting sellers, and diligently documenting every aspect of the sale, you can confidently navigate the process of buying land in Kenya – even from thousands of miles away. With some patience and the right preparation, investing in Kenyan land can be a rewarding long-term endeavour.
Remember: The above is not specific legal advice for you. Always consult a lawyer to determine the best option for your specific situation
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