Guide to Buying Land in Kenya as a Foreigner

Can a foreigner own land in Kenya? Yes. Buying land in Kenya as a foreigner is possible but subject to several limitations of property ownership in the country for non-citizens.

The Constitution (2010), the Lands Act (6/2012), and the Land Registration Act (3/2012) have spelt out that any person – either individually or as a group – can own land in Kenya.

Unfortunately, many non-citizens are duped into believing that they cannot own land in their name hence the need to form partnerships with locals.

These unnecessary partnerships often lead to nasty court battles and must be avoided.

However, there are several limitations to property ownership in Kenya by foreigners.

It is important for any foreigner seeking to buy land in Kenya to familiarise themselves with the legal provisions in respect of property acquisition in the country by non-citizens.

Limitations of Land Ownership

Buying land in Kenya as a foreigner is usually subjected to certain limitations. These limitations can be found in the Constitution (2010) and the Land Control Act (Cap 302).

According to Article 65(1) of the Constitution, a “person who is not a citizen may hold land based on leasehold tenure only, and any such lease, however, granted, shall not exceed ninety-nine years”. The leasehold is, however, renewable on the expiry of the term.

Article 65 clearly states that any document that purports to confer on a foreigner an interest in land with a lease of more than 99 years is considered as conferring on that foreigner a 99-year lease and not more.

What this provision means is that foreigners buying land with a leasehold interest of more than 99 years are deemed by law as holding the same property on a 99-year lease.

RELATED: The Procedure for Buying Land in Kenya

To buy land through a company, the Constitution defines a Kenyan company as an entity that is fully owned by one or more Kenyan citizens.

A company with one or more foreign shareholders is regarded as a foreign company and cannot own freehold land.

Article 8(1) of the Constitution clearly states that any freehold interest land in Kenya held by a foreigner shall revert to the Kenyan government and the State shall grant a peppercorn rent (an extremely low rent) for 99 years to the foreigner.

This means that effective August 28, 2010, when the Constitution was promulgated, any freehold land held by a non-Kenyan is shortened to a 99-year lease with a peppercorn rent.

Ownership of Agricultural Land

Under the Land Control Act, foreigners or firms wholly or partially owned by foreign investors cannot acquire agricultural land in the country.

However, the President of Kenya may exempt a foreigner from the above restrictions and this must be done through a notice in the Kenya Gazette.

Foreign investors seeking to buy agricultural land may apply for such exemption, which is usually granted at the discretion of the president.

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