At Newpoint, we serve both local and international markets which often leads to a common inquiry: Can Foreigners Own Property In Kenya? The answer is an affirmative Yes! According to Article 65(1) of the Constitution, non-citizens can own property in Kenya under leasehold tenure for a maximum of ninety-nine years.

There are restrictions to foreigners owning land in Kenya. The Land Control Act Cap 302 restricts the Ownership of agricultural land in Kenya by Foreigners and Section 47 of the Land Laws (Amendment) Act restricts non-citizen from owning beachfront properties at the Kenyan Coast. A non-citizen may however be exempted from the provisions of this Act by the President of Kenya.

In the event that a Kenyan citizen sells the freehold interest to a foreigner and the freehold tenure is converted to Leasehold the property cannot be converted again to freehold tenure after the expiry of the leasehold term. Even where a foreigner acquires or holds a freehold title, the interest acquired is deemed to be a 99-year leasehold, the conversion is automatic and requires no further formalities to be operational. After the expiry of the Leasehold term the foreigner can apply for a renewal of the Lease term or an extension of Lease. Unlike citizens, foreigners do not enjoy an automatic right of renewal or extension of a lease on expiry. Upon expiry, termination or extension of a lease granted to a foreigner, the land shall vest in the government.

However, there are limitations on foreign land ownership in Kenya. The Constitution restricts a non-citizen from owning freehold property under a trust and provides that any property held in trust shall be regarded as being held by a citizen only if all the beneficial interest of the trust is held by people who are citizens.

In order to lease land in Kenya therefore, you must first obtain an Alien Land Holding License from the Ministry of Lands and Physical Planning. It is important to conduct due diligence on the land before purchasing or leasing it, including checking for any outstanding debts or disputes over ownership. It is advisable to hire a reputable lawyer with experience in land transactions to assist with the process. The process of obtaining this license can be lengthy and requires several documents, including a valid passport, proof of income, and a detailed proposal for the use of the land.

In summary, foreigners can own:

1. Leasehold property and can apply for Lease Renewal.

2. Apply for an exemption to own freehold property and once approved, this is published in the Kenya Gazette.

3. Own agricultural land indirectly through owning shares in a public company that owns agricultural land.