Introduction.
A citizen of Kenya can possess land under the freehold or leasehold tenure system. A foreign investor is restricted to a leasehold interest only for a maximum of 99 years, but under freehold, the land interest automatically reverts to a leasehold interest. The summary below discusses the process of purchasing land.
Due diligence.
Due diligence is crucial for an investor to obtain a good, marketable title & ascertain there are no undisclosed encumbrances. The relevant searches include:
- Official Search – conducted in land registries manually or under the ArdhiSasa System (National Information Management System) by the Purchaser’s Advocate to verify ownership and existing encumbrances. Duration: 2-3 days.
- Physical Search – done by the Surveyor, involves visiting the location of the land to establish its boundaries, size, and gathering historical information from local residents on its status. Duration: 2-3 weeks.
- Historical Search – entails an investigation into the history of the land. The Ndung’u Report Commission conducts this search to determine if the land was unlawfully acquired and to identify any possible legal disputes surrounding it.
Land Rent &Rates Clearance.
The seller pays fees to obtain a Land Rent Clearance Certificate from the Ministry of Lands and Land Rent Clearance from the County Government to ensure all dues are paid before transferring it.
Certificates and Permits
An investor is required to obtain the National Construction Authority Certificate (NCA); the construction permit, National Environmental Management Authority License for environmental impact assessment, respective County Council permits, Nairobi Water and Sewerage Company Permit and Kenya Power Electricity Connection Approval Permit.
Transfer And Registration.
- Buyer presents an offer to the seller.
- The Vendor’s Advocate drafts a Sale Agreement (indicates purchase price, etc.) executed by both parties and accompanied by a deposit, usually 10% or as agreed by the Parties.
- Purchaser’s Advocate prepares the Transfer Form for execution by the Parties.
- Purchaser’s Advocate applies for a Valuation under Ardhi Sasa by a qualified Valuer to assess the Stamp duty payable.( 4% of land value in urban areas & 2% of land value in rural areas)
- Buyer pays the purchase price balance, and seller surrenders the original title deed & accompanying completion documents.
- Purchaser’s Advocate pays for registration fees& submits all documents for registration to the Land Registry to acquire a Certificate of Lease or New Title Deed.
Zoning Requirements
Land here can be classified into residential, commercial or agricultural. For proper planning, zoning laws exist to guide the type of development allowed in different areas. In Anami & 2 others (Suing as Officials of Rhapta Road Residents Association) v County Executive Committee Member(CECM) Built Environment and Urban Planning, Nairobi City County & 20 others [2025] eKLR, the Court declared that:
- Rhapta Road was declared as Zone 3C, permitting development of buildings up to 20 floors, previously capped at 16 floors.
- The 2004 Zoning Guidelines were rendered obsolete and unenforceable, whilst the 2021 National Development Control Policy was placed pending County Assembly approval and gazetting.
Implications of the Rhapta Residents Association Ruling on Investors.
- Investors or developers should be conscious of the anticipated approval and gazettement of zoning policies within 6 months of gazettement. This way, they shall be well placed to make informed decisions that are not potentially restrictive.
- Any upcoming developments along Rhapta Road classified under Zone 3 can proceed up to 20 Floors.
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