Explained: How Foreigners Can Legally Acquire Land and Property in Kenya

Foreign nationals hold property in Kenya, including large tracts of land, apartments, and major businesses, and many wonder about the rules governing foreigners' acquisition of property in the country.

Foreign nationals living in Kenya and seeking to acquire land or property in Kenya can do so, but only under specific legal rules.

The Constitution prohibits a foreign national from holding freehold land in the country, but they can instead own it through a government lease of up to 99 years.

Article 65 states that a person who is not a Kenyan citizen may hold land only under leasehold tenure, with the lease period not exceeding 99 years.

This lease structure allows foreigners seeking to invest in Kenya to do so without paying much in rent while operating on the land in question.

According to a legal guide by Global Law Experts, foreign investors can acquire leasehold interests directly or through properly registered Kenyan companies, subject to applicable laws and regulatory approvals.

"Where non-citizens hold or acquire leasehold land, the term of the lease is constrained. The Constitution fixes ninety-nine years as the maximum term for a non-citizen. A 99-year lease arrangement in Kenya gives a foreign investor a long and bankable horizon, sufficient to support development, financing and a secondary market in the leasehold interest, while respecting the constitutional limits on non-citizen tenure."  

A foreign investor can purchase an existing leasehold interest or enter into a new lease, provided the arrangement complies with the Constitution and relevant land laws.

Where a foreigner acquires property that was previously registered as freehold, the same 99-year lease limit also applies, as the Constitution treats land held by non-citizens as a 99-year leasehold interest.

Before purchasing a property in Kenya as a foreigner, you are advised to review the remaining lease term.

Foreigners Seeking Agricultural Land 

However, foreigners face stricter rules when seeking to acquire agricultural land.

Under the rules, the investor must first seek consent from the Land Control Board for certain transactions involving controlled agricultural land, including sales, transfers, leases, charges, and subdivisions.

Before entering into a purchase agreement, the investor must establish whether a property is classified as controlled agricultural land.

They must also determine whether the proposed transaction is legally permissible and whether the necessary approvals can be obtained.

Foreign investors can also establish companies in Kenya and use them to acquire property.

The companies are registered with the Business Registration Service (BRS), and incorporation applications are submitted through the eCitizen platform.

Notably, registering a company locally does not automatically exempt foreign investors from the constitutional restrictions.

A Kenyan company with foreign shareholders may still be classified as a non-citizen for land ownership purposes.

Consequently, a company with foreign shareholding can generally acquire leasehold land for a maximum period of 99 years.