Can a Foreign Company Own a School in Kenya? Ownership and Land Rules

Foreign investors regularly ask whether a company owned from abroad can open and run a private school in Kenya. The short answer is that the Basic Education Act, 2013 does not, on its face, bar foreign ownership, but several other rules decide whether the project works in practice: who may be a proprietor, who must approve the school, and what a foreign-owned company can hold in land. This article sets out what the law says as at 24 October 2026 and where the real constraints sit. This guide explains how a foreign company can own a school in Kenya and where the land rules draw the line.

Who can own a school in Kenya under the Basic Education Act

Section 49 of the Basic Education Act allows any person to establish a private school, subject to the Act. Section 50 then sets the conditions. A private school must be registered before it is established or maintained, and registration is refused if the proprietor is disqualified under Article 10 or Chapter Six of the Constitution (national values, leadership and integrity), if the school employs teachers who are not registered with the Teachers Service Commission, if the premises are unsuitable, or if the proprietor or manager has been convicted of a crime against children under the Sexual Offences Act or the Counter Trafficking in Persons Act.

Nothing in section 49 or 50 refers to the nationality of the proprietor. Regulation 3 of the Basic Education Regulations, 2015 adds that no person, body or organisation may establish or admit learners to a private or public institution without first obtaining written authority from the Cabinet Secretary for Education. We read the integrity test as applying to the people behind a foreign-owned company (directors and controlling shareholders), which means a vetting exercise on persons who may never have lived in Kenya. Plan for that early.

The real limit: land held by a foreign-owned company

The nationality question arises under the Constitution, not the education statutes. Article 65 provides that a person who is not a citizen may hold land on leasehold only, for no more than 99 years. For this purpose, a body corporate counts as a citizen only if it is wholly owned by one or more citizens. A Kenyan company that has even one foreign shareholder is therefore treated as a non-citizen for land purposes, and it cannot hold freehold.

For a school operator this has three consequences:

• A foreign-owned operating company can lease a campus or a building but cannot buy the freehold in its own name.
• Any lease must be drafted to satisfy Article 65 and to give the school enough security of tenure to justify the fit-out. The Ministry’s legacy registration guidance contemplates that the physical facilities may be leased, but it predates the current Act, so confirm the current expectation with the County Education Board before you sign.
• Structuring through a Kenyan citizen-owned property company that leases to the school operator is common, but it must be a genuine arrangement and not a nominee device. Our guide to foreign developers and leasehold rules in Kenya explains the land-side mechanics.

Which approvals a foreign-owned school needs

A foreign owner does not skip any step that a Kenyan owner must take. The application goes to the County Education Board, the Education Standards and Quality Assurance Council assesses it, and the Board licenses and registers the school only if it has enough registered teachers and staff, appropriate teaching and learning facilities, suitable premises and adequate infrastructure and equipment (sections 82 and 83). The curriculum and instructional materials must be developed or approved by the Kenya Institute of Curriculum Development (regulation 54). Our companion article on registering a private school in Kenya walks through the application step by step.

Operating without registration is an offence. Section 50(4) provides a penalty for running an unregistered school, and section 78 provides a fine of up to KES 20 million or imprisonment of up to three years for promoting, managing or teaching basic education without being accredited and registered. Foreign promoters should not enrol a single learner before the written authority and registration are in hand.

Corporate and immigration points that sit alongside the education law

The education statutes do not deal with company structure or work authorisation, so these need separate attention:

• Company structure. Most foreign owners incorporate a Kenyan company or register a branch. The governance and management structure and the qualifications of the promoters are part of the registration application (section 83).
• Staff. Teachers must be registered by the Teachers Service Commission. Foreign management staff need the correct work authorisation before they start, and our note on the regularisation of foreign business owners in Kenya explains why that cannot be left until after launch.
• Financial ability. The application requires a statement of the financial ability of the promoters and managers, so a thinly capitalised special-purpose company is a weak applicant.

The Basic Education Bill, 2026

The legal position may change. The Basic Education Bill, 2026 (National Assembly Bill No. 50 of 2026) would repeal the Basic Education Act. Parliament’s tracker showed the Bill at First Reading on 11 August 2026, so it is not law and its text may change. In our reading of the published Bill, its registration provisions (clauses 25 to 28) keep the same core approach: provisional registration for one year, renewable once, and a County Education Board application that includes the financial ability of the promoters. The Bill also contains no clause restricting foreign ownership of a school, but clause 24 would require a person or institution seeking to offer a foreign system of education in Kenya to apply to the Cabinet Secretary for approval. A school teaching the Kenyan Competency Based Curriculum should not need that approval, but any foreign programme added to the offering might. Clause 112 would preserve registrations issued under the current Act. Check the Bill’s progress before you commit capital.

Frequently asked questions

This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.