Property Ownership Rights for Foreign Investors in Kenya

Article 65 of the Constitution of Kenya, 2010 limits non-citizens to leasehold tenure of land — and to a maximum unexpired residue of 99 years. Any longer-term lease in favour of a non-citizen is automatically converted to 99 years; any freehold transfer to a non-citizen is treated as a 99-year lease.

The Land Control Act prohibits transfers of agricultural land to non-citizens without consent of the Cabinet Secretary, which is rarely granted. Foreign investors in agribusiness typically acquire land through Kenyan-incorporated companies in which they hold shares.

The Sectional Properties Act, 2020 permits foreigners to acquire long leasehold sectional title to individual apartments and commercial units, subject to the 99-year ceiling. This is the most common ownership route for residential and commercial units in Nairobi developments.

A non-citizen may incorporate a Kenyan private limited company and hold real estate through it. The company is a Kenyan legal person, capable of holding freehold and agricultural land. Beneficial ownership disclosure under the Companies (Beneficial Ownership Information) Regulations, 2020 applies.

There are no exchange controls on bringing investment funds into Kenya. Capital gains tax of 15% applies on disposal of land. Withholding tax applies to rental income paid to non-residents. Double taxation treaties with several countries reduce effective rates.

The standard due diligence checklist — official search, rates and rent clearance, beacon verification, planning compliance — applies equally to foreign buyers. Power of attorney executed abroad (notarised or apostilled) enables completion without physical attendance.

Holding company plus operating subsidiary; Kenyan SPV holding a single asset; joint venture with a Kenyan citizen for agricultural projects. Each structure has tax and governance consequences best resolved before acquisition.