A Complete Guide for Foreigners Buying Real Estate in Kenya
Kenya’s dynamic real estate market continues to attract international investors—offering everything from luxury residences and commercial properties to land in fast-growing towns like Naivasha, Nanyuki, and Thika. However, foreigners face unique legal requirements and restrictions when buying real estate in Kenya. This guide outlines the step-by-step process, legal framework, and key compliance issues you must know to invest confidently and avoid costly mistakes.
Who Qualifies as a Foreigner in Kenya?
- Any individual who is not a Kenyan citizen
- Any company or entity where more than 51% of the shareholding is foreign-owned
Foreigners can buy property, but the type of property and tenure they can acquire is subject to constitutional and statutory limitations.
Step-by-Step Process to Buy Property in Kenya as a Foreigner
- Hire a Real Estate Agent and Advocate
Engage a licensed:
- Real estate agent to help you source property
- Conveyancing advocate (property lawyer) to handle due diligence and contracts
- Conduct Due Diligence
Your lawyer will:
- Conduct a search at the Land Registry
- Confirm property ownership and check for encumbrances (loans, disputes, caveats)
- Confirm the land is not public, community, or trust land
- Make an Offer and Sign the Sale Agreement
- Issue a Letter of Offer
- Upon agreement, sign a Sale Agreement, typically drafted by the seller’s advocate
- Pay a 10% deposit to an escrow or client account
- Seek Land Control Board (LCB) Consent (if applicable)
Required for agricultural land transactions. Note:
- Foreigners cannot directly buy agricultural land
- Workarounds may involve leasehold structures or company setups
- Pay Stamp Duty
- Stamp duty is 2% in rural areas and 4% in urban areas
- Assessed and collected by the Kenya Revenue Authority (KRA)
- Title Transfer and Registration
- Final transfer documents are lodged at the Ministry of Lands
- A new lease document or title deed is issued in the foreign buyer’s name (or their company)
Legal Requirements and Restrictions
Foreigners Cannot Own Freehold Land
- The Kenyan Constitution (2010) restricts non-citizens from owning freehold land
- Foreigners can only hold land on a 99-year leasehold basis
Agricultural Land Restrictions
- Agricultural land falls under the Land Control Act, which limits foreign ownership
- Foreigners need special approval or must invest through:
- Kenyan-registered companies
- Long-term lease agreements
Investing Through a Kenyan Company
- Foreigners can register a Kenyan company to buy property
- Must comply with:
- Companies Act, 2015
- Kenya Revenue Authority (KRA) registration
- Transparent ownership disclosure
Tax Obligations for Foreign Buyers
You must:
- Obtain a KRA Personal Identification Number (PIN)
- Pay:
- Stamp duty (2% in Rural areas and 4% in urban areas)
- Capital Gains Tax (15%)—typically paid by the seller
- Rental income tax (if generating rental income)
Red Flags to Watch Out For
- Fake or forged title deeds
- Land under community ownership or litigation
- Unregistered or rogue agents
- Being rushed into a transaction without due diligence
- Promises of freehold land to foreigners (illegal)
Expert Tips for Foreign Real Estate Investors in Kenya
- Always work with licensed professionals
- Focus on urban or non-agricultural leasehold properties
- Consider joint ventures with local partners for agricultural or mixed-use developments
- Explore areas with strong infrastructure, demand, and returns
- Get a local lawyer to verify compliance with land laws and the Constitution
While buying real estate in Kenya as a foreigner is very possible, it’s essential to understand the legal landscape and follow the proper procedures. Kenya offers a high-potential market, but working with qualified professionals and respecting the legal framework will help you avoid risks and make smart, compliant investments. At Lesama Limited, we help foreign investors navigate the Kenyan real estate market with confidence—offering due diligence, property sourcing, legal support through our lawyers, and investment advisory services.
Contact us today to explore available properties and get started the right way.
LESAMA LIMITED
+254700215848
+254720755992
