Real Estate Frequently Asked Questions and Answers

Ownership & Legalities

Can foreigners own land in Kenya?
Yes, but with restrictions. Foreigners can only own land on a leasehold basis (typically for 99 years). They are generally prohibited from owning agricultural land unless a special exemption is granted.
What is the difference between freehold and leasehold?
- Freehold: Absolute ownership with no time limit; reserved primarily for Kenyan citizens.
- Leasehold: Ownership for a fixed term (usually 99 years), after which the lease must be renewed.
What is the “12-year rule”?
Known as Adverse Possession, a person can legally claim ownership of land if they have occupied it openly, continuously, and without the owner’s permission for at least 12 years.

The Buying Process

Identify Property: Select a site and request a copy of the title deed.
Due Diligence: Conduct an official search via the eCitizen portal or the Ardhisasa platform for digitized records to verify ownership and check for encumbrances.
Sale Agreement: Engage a lawyer to draft or review the agreement once terms are negotiated.
Land Control Board (LCB): Obtain consent from the local LCB if the property is classified as agricultural.
Payment & Transfer: Pay the balance, settle stamp duty, and register the transfer to receive the new title deed.

Costs and Taxes (2026)

Stamp Duty: 4% of the property value for urban properties and 2% for rural properties.
Capital Gains Tax (CGT): Currently 15% on the profit made from a sale, paid by the seller.
Rental Income Tax: Landlords pay a simplified monthly rental income tax of 7.5% on gross rent.
Legal Fees: Typically range from 1% to 2% of the purchase price.
Other Fees: Budget for valuation fees (~0.25%), registration fees (~KES 5,000), and search fees (KES 500).

Investment & Financing

What is the average ROI for real estate in Kenya?
Residential returns typically range from 5% to 10%, while commercial properties can reach up to 12%. Some high-growth areas report annual appreciation of 20% or more.
Can I get a mortgage as a foreigner?
Yes, provided you have a stable local income, local assets as collateral, or a business operating in Kenya.
What is a “Sectional Title”?
Under the Sectional Properties Act (2020), these are individual titles issued for units within a building (like apartments or townhouses), giving the owner absolute legal rights to their specific unit.

Safety and Professionalism

How do I avoid real estate scams?
- Never pay cash directly to an individual; use a lawyer’s client account.
- Always verify agents are licensed by the Estate Agents Registration Board (EARB).
- Physically visit the land and talk to neighbors to confirm there are no hidden disputes.