For years, many Kenyans in the diaspora and foreign investors have been misled into believing that they cannot own property in Kenya in their own name. This misconception has cost investors millions through failed partnerships, nominee arrangements, and fraudulent deals.
The truth is simpler — and safer.
Kenyan law expressly allows foreigners and diaspora investors to own property, subject to clear and well-defined limitations. Understanding these rules is the key to protecting your investment and avoiding costly mistakes.
Yes — Foreigners Can Own Property in Kenya
Kenya’s legal framework, anchored in the Constitution of Kenya (2010), the Lands Act (2012), and the Land Registration Act (2012), grants any person, whether Kenyan or foreign, the right to acquire and own land in Kenya.
This right applies whether you are purchasing:
- Residential apartments
- Commercial property
- Investment real estate
Ownership in your own name is not only legal — it is encouraged.
The Dangerous Myth That Traps Diaspora Investors
Many diaspora investors have been advised to:
- Buy property through Kenyan “partners”
- Register land under relatives or friends
- Use nominee or trust arrangements
This advice is wrong and risky.
Kenyan courts have repeatedly ruled against such arrangements. In cases such as Hartmann v Mbogo and Grounstra v Wanje, foreign investors who relied on locals to hold property on their behalf lost control of their investments when relationships deteriorated.
If someone tells you that foreigners cannot own land in Kenya, treat it as a warning sign.
The Key Legal Limitation: Leasehold Only (99 Years)
While foreigners may own land, how they own it matters.
Under Article 65 of the Constitution:
- Foreigners may hold land only under leasehold tenure
- The maximum lease term is 99 years
Any lease that appears to exceed 99 years is automatically reduced by law to a 99-year lease.
The good news?
On expiry, leases may be renewed, subject to government approval.
Freehold Land and the 2010 Constitution
Foreigners cannot own freehold land in Kenya.
When the Constitution came into force on 28 August 2010, any freehold land already owned by foreigners was:
- Converted into a 99-year lease
- Granted at a peppercorn rent
- Backdated to the Constitution’s commencement date
The government has since been issuing new leasehold titles to replace such freehold titles.
Buying Property Through a Company: What Diaspora Investors Should Know
A company is considered Kenyan for land ownership purposes only if it is 100% owned by Kenyan citizens.
This means:
- A company with even one foreign shareholder is treated as a foreign company
- Such companies cannot own freehold land
- Trusts cannot be used to bypass this rule
Using “dummy” Kenyan shareholders or secret trust declarations exposes investors to serious legal risk and potential loss of property.
Agricultural Land: Strictly Restricted
Agricultural land in Kenya is heavily regulated under the Land Control Act.
Foreigners and foreign-owned private companies:
❌ Cannot buy
❌ Cannot lease
❌ Cannot transfer
agricultural land without special approval.
Only the following may freely transact in agricultural land:
- Kenyan citizens
- Kenyan-owned private companies and cooperatives
- Certain group entities
- State corporations
Possible exceptions
- The President may grant an exemption via a Gazette Notice
- Public companies with foreign shareholders may acquire agricultural land
Why Nominees and Dummy Companies Fail
Some investors attempt to sidestep restrictions by:
- Registering companies with Kenyan shareholders “on paper”
- Using nominees to hold land
- Signing declarations of trust
These arrangements are unconstitutional and unenforceable.
Kenyan law looks at beneficial ownership, not just names on paper. If the real owner is foreign, the property is treated as foreign-owned — regardless of the structure used.
How Diaspora Investors Can Invest Safely
To protect your investment:
✔ Buy property in your own name
✔ Stick to leasehold titles
✔ Avoid local fronts, nominees, and secret trusts
✔ Conduct proper legal due diligence
✔ Engage qualified advocates and real estate professionals
Kenya offers strong returns, a growing property market, and legal protections — but only if the rules are followed.
Final Word
Diaspora investors do not need shortcuts, local fronts, or risky partnerships to invest in Kenya. The law already provides a clear and secure path to property ownership.
Knowledge is your strongest safeguard.
