Foreigners guide and tips when buying property in Kenya

Author: Admin, Gertler Investment Limited

2025-03-04 17:55:22

Why Kenya is the Best Destination for Foreign Investors and Expatriates

Kenya has recently been ranked as the best country in Africa for foreign investors and expatriates to settle and invest. This recognition, awarded by a reputable global company that provides information to expatriates worldwide, is a testament to the country's potential for growth and investment opportunities.africa top 5 countries to invest in

As a proud nation, we celebrate this recognition, which signifies Kenya's attractiveness as a destination for business and settlement. Here’s why Kenya is an ideal place for foreign investment:

Why You Should Invest in Kenya

  1. Beautiful Scenery & Vibrant Culture – Kenya boasts breathtaking landscapes, from the savannahs to the coastal beaches. The people are warm, friendly, and welcoming, making it easy for foreigners to feel at home.

  2. Peaceful & Stable Environment – Kenya enjoys political stability and economic growth, creating a conducive atmosphere for investment.

  3. No Language Barrier – English is widely spoken, making communication easy for international investors and expatriates.

  4. Fast-Growing Economy – With a growing middle class, Kenya presents significant opportunities for business expansion and investment.

  5. Affordable Housing – The cost of housing in Kenya is relatively affordable for foreign investors, making it an attractive option for property investment.

Key Facts About Foreign Property Ownership in Kenya

Foreigners are legally allowed to own property in Kenya under the Land Registration Act, the Lands Act, and the Kenyan Constitution. Foreign investors can own property either as individuals, through a company, or via a trust.

Important Considerations for Foreign Property Ownership

  • Ownership Does Not Grant Citizenship – Buying property in Kenya does not automatically make you a Kenyan citizen.

  • Inheritance Rights – Property owned by foreigners can be inherited by family members, including spouses and children, without gender discrimination.

  • Children as Legal Owners – Under the Land Registration Act (2012), Section 47, a child can legally own property in Kenya.

Foreigners & Leasehold Property Ownership

Foreign investors can only purchase property under leasehold tenure, which means:

  • The property ownership is limited to 99 years.

  • Land ownership remains under the government or Kenyan citizens, and foreigners must pay an annual rent for the leased land.

  • At the end of the lease period, the lease can be renewed depending on government policies.

Restrictions on Foreign Property Ownership

  1. Foreigners Cannot Own Freehold Land – Freehold land, which grants full ownership, is reserved for Kenyan citizens.

  2. No Ownership of Agricultural or Rural Land – Foreigners cannot purchase agricultural land unless an exemption is granted by the President of Kenya.

  3. Foreign-Owned Companies Are Subject to Restrictions – A company with foreign shareholders is classified as a foreign entity and cannot own freehold property. Additionally, setting up a trust to bypass ownership restrictions is illegal.

  4. Public Companies Exception – Foreign investors can own freehold or agricultural land through public companies, where multiple investors hold shares legally.

Steps to Buying Property in Kenya as a Foreigner

  1. Gather Necessary Documents: Ensure you have a valid passport, proof of income, KRA PIN, passport-size photos, and a residential address.

  2. Hire a Reputable Realtor: Work with an experienced real estate agent to navigate the property acquisition process smoothly. Consider working with Jackie Sals Homes, a trusted name in Kenyan real estate.

  3. Conduct Due Diligence: Verify property ownership, conduct land searches, and confirm there are no legal disputes or encumbrances.

  4. Appoint a Lawyer: A qualified real estate lawyer will help draft and review the sale agreement to protect your interests.

  5. Make a Down Payment: Typically, 10% of the property value is paid upfront to secure the deal, often held in an escrow account until completion.

  6. Register the Property in Your Name: After full payment, the property will be transferred and registered under your name at the Land Registry Office.

  7. Final Verification: Conduct a post-purchase property search to confirm the title deed reflects your ownership.

  8. Secure Your Investment: If purchasing land, fence the property and introduce yourself to neighbors to prevent trespassing or disputes.

Final Thoughts

Kenya presents excellent opportunities for foreign investors, with a welcoming environment, stable economy, and affordable housing. If you're considering investing in Kenya, don’t hesitate—it is possible, and it can be done successfully!

If you have any questions regarding foreign property ownership in Kenya, feel free to leave a comment or reach out to GERTLER INVESTMENT your most trusted realtor. For more insights on real estate investment in Kenya, subscribe to our newsletter and stay informed about the latest property trends.

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