Buying property in Kenya is a significant transaction governed by the Land Registration Act No. 3 of 2012, the Land Act No. 6 of 2012, the Stamp Duty Act, and county government requirements.
Step 1: Verify the Title
Conduct a search at the relevant Land Registry to confirm the current owner, the nature of the title, whether the title is encumbered by a charge, caveat, caution, or restriction, and the area and boundaries. A positive search does not guarantee a clean title. Physical due diligence, including a site visit and survey, is necessary to confirm the property matches the registered description and has no adverse possessors.
Step 2: Check Consent Requirements
Agricultural land may require consent from the Land Control Board before sale. Failure to obtain the required Land Control Board consent makes the transaction void.
Step 3: Sign a Sale Agreement
A sale agreement should be in writing and signed by both parties, identifying the parties, describing the property by title number, stating the purchase price and payment terms, the deposit, the completion date, and the consequences of default. The agreement should be prepared or reviewed by an advocate before signing.
Step 4: Pay Stamp Duty
Stamp duty is payable at 4 percent of the purchase price for urban properties and 2 percent for rural properties, calculated on the higher of the purchase price and the government’s value assessment. Stamp duty must be paid before the transfer can be registered.
Step 5: Register the Transfer
The transfer is registered at the Land Registry by presenting the executed transfer instrument, the original title deed, stamp duty receipts, consent where required, and prescribed fees. Registration is the point at which ownership passes. A new title deed is issued.
Foreign Ownership Restrictions
Under Article 65 of the Constitution, non-citizens cannot hold freehold title in Kenya. Foreign individuals and companies can hold leasehold interests of up to 99 years. Kenyan citizens in the diaspora retain full ownership rights.
Planning to buy property in Kenya? Contact Clay & Associates Advocates for due diligence and conveyancing services. Book a Consultation
