Can Foreigners Own Land and Apartments in Kenya?

Kenya has become a hotspot for property investment due to its fast-growing economy, thriving real estate market, and vibrant urban centers like Nairobi, Mombasa, and Kisumu. For many foreigners, the question arises: Can foreigners own land and apartments in Kenya?

The short answer is yes—with restrictions. Kenya’s laws allow foreigners to own property, but the type of ownership and how the property is acquired matter. Let’s break it down.

What the Law Says: Leasehold vs. Freehold

Kenya’s Constitution and the Land Act distinguish between two main forms of property ownership:

Freehold Ownership
- Grants absolute ownership of land with no time limit.
- Reserved only for Kenyan citizens. Foreigners cannot directly own freehold land.
Leasehold Ownership
- Foreigners are allowed to own property under a leasehold tenure for a maximum of 99 years.
- Most apartments, commercial buildings, and residential developments in urban areas are sold under leasehold.

In practice, this means foreigners can legally buy apartments, townhouses, and houses on leased land, but they cannot directly own agricultural or freehold land.

Can Foreigners Own Apartments in Kenya?

Yes. Since most apartments are constructed on leasehold land, foreigners can buy, register, and fully own apartments. Once purchased, the foreign buyer’s name appears on the lease title or sectional title deed, giving them full legal rights to the unit for the duration of the lease.

What Documents Are Required to Buy Property in Kenya?

To buy property in Kenya, a foreign investor typically needs:

Valid Passport and Work Permit/Alien ID
KRA PIN (Kenya Revenue Authority Personal Identification Number) – required for all property transactions.
Sale Agreement signed by both parties.
Title Deed or Lease Agreement of the property.
Consent to Transfer from the relevant land board (where applicable).
Proof of Funds (bank statements or remittance slips).

Conducting Due Diligence and Why It’s Crucial

Due diligence is one of the most important steps in buying property in Kenya. It helps confirm that:

The seller is the legal owner of the property.
The property has a clean title with no disputes or encumbrances (e.g., loans, caveats, or unpaid land rates).
The land is properly zoned and suitable for your intended use.

This process is usually carried out by an advocate (property lawyer) who will conduct a land search at the Ministry of Lands before you commit to the purchase. Skipping this step can expose you to fraud or legal disputes.

Taxes and Legal Fees

When purchasing property in Kenya, foreigners must budget for the following costs:

Stamp Duty: 4% (urban areas) or 2% (rural areas) of the property value.
Legal Fees: Typically 1%–2% of the property value.
Registration Fees: Payable to the Ministry of Lands during the transfer process.
Valuation Fees: Charged when the government valuer assesses the property for stamp duty purposes.

Renewing a 99-Year Lease

For properties held under a 99-year lease, renewal is possible. The government allows lease renewals subject to compliance with development conditions and payment of prescribed fees. It’s advisable to monitor the lease term and apply for renewal early to avoid complications.

What About Buying Land Through a Company?

Some foreigners explore the option of acquiring land by registering a company in Kenya. Here’s how it works:

If the company is 100% foreign-owned, it is still treated as a foreign entity and cannot own freehold land.
If the company is a joint venture with Kenyan citizens holding the majority shares (at least 51%), it may acquire land on freehold tenure.

Contact us today for more information. Browse through the properties available in top-notch estates in Nairobi.