Many people want to own property in Kenya, but it is not as easy for foreigners as some think. You can’t just buy any piece of land and start building. There are many legal requirements you need to meet before you start developing your plot. If this sounds like something you’re interested in doing, then keep reading. We explain how you can own property in Kenya even if you’re not from here!
Can a foreigner own property in Kenya?
Well, the short answer is yes! The law allows non-Kenyans to buy, convey and own land in Kenya. Foreigners are not allowed to own freehold immovable property. But they can buy on leasehold subject to certain restrictions under the Land Act. The leasehold is for a period not exceeding ninety-nine (99) years.
What are the requirements for buying land in Kenya as a foreigner?
Foreigners continue to rent, lease and acquire immovable property in Kenya. But most of the time, foreigners believe they cannot own land in their name. So they enter into agreements and arrangements with locals to buy property on their behalf. These partnerships between foreigners and locals often turn sour, leading to losses of investment. So, they should trade carefully to avoid scams. Here are requirements to own property in Kenya:
- Own as an individual. As a foreigner, you can own property in Kenya. You will need a letter of approval from the Cabinet Secretary of Lands and Physical Planning.
- Own through a company. Register your company with the Registrar of companies. Your company should have a Kenya address, bank account. Besides, your company should meet the required financial capacity. It means foreigners should have more than US$ 1 million in paid-up capital.
- Own through a trust. Your trust should be registered in Kenya. Have a residential address where you intend to develop and maintain the property. Besides, it would help if you were a beneficial owner of the trustees. In other words, you need a Kenyan bank account; and meet the required financial capacity.
Limitations on land ownership by non-citizen in Kenya
- Agricultural land. The Land Control Act does not allow foreigners or foreign firms to own agricultural land wholly or partially. But the President of Kenya can exempt a foreigner from owning agricultural land in Kenya. And this must be done through a notice in the Kenya Gazette. So foreigners seeking to buy agricultural land can apply for such exemption.
- Foreign company. The Constitution defines a Kenyan company as an entity fully owned by one or more Kenyan citizens. So a company with one or more foreign shareholders is regarded as a foreign company. And cannot own freehold land unless the majority shareholders are Kenyan citizens.
The Constitution also allows any freehold interest land held by a non-Kenya citizen to be reverted to the Kenyan government. And the state will grant a peppercorn rent for 99 years to that individual.
1 thought on “How To Own a Property in Kenya Even If You’re A Foreigner”