Buying property as a Foreigner or a Kenyan in the Diaspora

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Are you a foreigner or a Kenyan in the Diaspora looking to purchase property in Kenya. Below is a well thought out guide on how to go about it. We understand the challenges that foreigners and Kenyans in the diaspora may face when trying to purchase property especially on who to trust and the procedures to follow to ensure that you purchase property that has a clean Title. 

Some of the properties available for sale include residential houses/apartments, agricultural land, commercial spaces/offices, among others.

`It is important to however note that under Article 65 of the Constitution of Kenya, 2010, foreigners in Kenya are restricted to owning property only on a leasehold basis for a maximum term of ninety nine (99) years.  The leasehold term is renewable, however the Lessor has priority in renewal. The foreigner can own the Property either as an Individual, a trust or a Company, wherein he or she is a shareholder.

Kenyans in the diaspora on the other hand have no restriction on the tenure of ownership of property.

Below is a step by step guide on how to purchase property in Kenya as a foreigner or a Kenyan in the diaspora:

  • Identifying the Property to be purchased. You can either use a well known agent in Kenya to help in identifying a property suitable for purchase according to your specifications or you can identify the property on your own;
  • Once you have identified the property you can arrange for a site visit or use a representative that you trust to undertake the site visit, if you are not in the country, where you should meet the vendor of the property and if interested, you can then put in an offer, subject to undertaking due diligence on the Property, where the vendor should provide you with identification documents on the property and the vendor;
  • Undertaking due diligence on the Property, which includes conducting an official search, obtaining the history of the property; company search if the vendor is a company, identifying the boundaries on the property, case search on the property to identify if there are any cases affecting the property or any disputes on the same; among other due diligence exercises;
  • If satisfied with the due diligence, you can then execute an Agreement for Sale with the Vendor, where it should be witnessed by advocate and duty stamped. The purchaser is usually required upon execution of the Agreement for Sale to pay the agreed deposit wherein the balance is payable on the completion date stipulated under the Agreement for Sale. It is important to ensure that you engage your own lawyer as a Purchaser noting that the vendor’s lawyer is the one obligated to prepare the Agreement for Sale, to ensure that your interests are fully covered;
  • Completion process. On or before the completion date the vendor’s lawyer is required to hand over the completion documents to the Purchaser’s advocates to enable the transfer to be effected, the balance of the purchase price is then paid at this stage of completion of the transaction;
  • Transfer of the property is then effected in the name of the Purchaser and a new Title is issued.
  • Once the Title has been issued, it is important to ensure that a post registration search is conducted and a copy of the green card is obtained to verify that indeed the transfer has been effected.
  • The Purchaser shall then be entitled to put to use the property for the intended purpose of purchase.

It is important to engage professionals in this entire process including a skilled and qualified lawyer and surveyor.

We at Kendi and Company Advocates have numerous experience in representing foreign and Kenyan diaspora clients in property purchase in Kenya and are fully qualified to assist you in the entire process.

NOTE: For any enquiries on the same please do not hesitate to contact us on info@kendikadvocates.co.ke or 0768028504

DISCLAIMER:This information is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. Kendi & Company Advocates is not responsible for any actions taken on this basis.