The Overall Process of buying Land in Kenya
14th January 2024
1. Identify the Land and Conduct Due Diligence
- Location: Identify the piece of land you want to purchase. Visit the site to confirm its location, size, and boundaries (presence of beacons).
- Ownership Verification: Obtain the land’s copy of title deed from the seller and verify ownership details at the Ministry of Lands or relevant county land registry.
- Search at the Lands Office: Conduct a title search at the Lands Registry. This confirms the land’s ownership, size, and whether it has encumbrances such as loans or disputes. A search fee of KES 1000 is typically required, and the process takes about 2-3 days.
- Map Verification: Get a certified map of the land from the Survey of Kenya or county offices to ensure the boundaries match. The Map will also confirm the actual size of the land. There have been instances where a buyer pays for land that’s of lesser acreage than indicated on the sale agreement.
2. Obtain Necessary Documents
- Land Search Results: Ensure the land is clear of disputes, loans, or other encumbrances. Your advocate can help with conducting an official search on the property.
- Survey Plan: Request a copy of the survey plan/map from the seller or the survey department.
- County Rates Clearance: Verify that all land rates and taxes have been paid by the seller. Obtain a clearance certificate from the county government.
- Land Rent: if it is a leasehold property, also ensure that you obtain the Land Rent Clearance Certificate from the seller.
3. Engage Professionals
- Lawyer: Hire a lawyer to draft and review the sale agreement. Legal representation ensures the process adheres to the law. You save lots of unnecessary costs when you hire a lawyer early on.
- Surveyor: A surveyor can confirm the boundaries on-site and check for encroachments or discrepancies. Your lawyer will help you to procure a qualified surveyor and valuer.
- Valuer (optional): If needed, hire a valuer to determine the market value of the land.
4. Negotiate and Draft a Sale Agreement
- Sale Price Negotiation: Agree on the price and terms with the seller.
- Sale Agreement: Your lawyer drafts a sale agreement outlining the terms of the sale, including the price, payment terms, and transfer process. Both parties sign, and a deposit (ordinarily 10% of the purchase price) is made.
- Witnesses: Ensure both parties sign the agreement in the presence of witnesses.
5. Payment and Stamp Duty
- Full Payment: Pay the balance of the purchase price as agreed.
- Stamp Duty: Pay the stamp duty to the Kenya Revenue Authority (KRA). The rates are:
- 2% of the value for rural land.
- 4% of the value for urban land.
6. Land Transfer Process
- Application for Land Transfer: Submit a completed land transfer form to the Lands Registry along with required documents (e.g., title deed, sale agreement, ID copies, passport photos, KRA PINs, and clearance certificates).
- Consent to Transfer: For agricultural land, seek consent from the Land Control Board (LCB). The board meets monthly, and there’s a fee of about KES 1,000. This approval must be obtained within six months of the agreement.
- Registration: After approval, the land is officially transferred to the buyer, and a new title deed is issued in your name. However, for registration to occur, your lawyer must have lodged the transfer forms together with other completion documents with the Lands Registrar.
7. Collect the Title Deed
- Once the process is complete, collect the title deed from the Lands Registry. Ensure it bears your name and all relevant details are accurate.
8. Additional Costs
- Legal Fees: 1-2% of the purchase price.
- Survey Fees (if applicable): Based on the size and location of the land.
- Valuation Fees (optional).
- Other Miscellaneous Fees: Include county charges and application fees.
Important Tips:
- Avoid Brokers: Work directly with the landowner or verified agents to avoid fraud.
- Check Land Use: Ensure the land is suitable for your intended use (e.g., residential, agricultural, or commercial). You could also lodge a change of user with the relevant lands office through your lawyer.
- Be Patient: The process may take weeks or months, depending on approvals and paperwork.
Disclaimer: This communication is provided solely as a general guidance tool and does not constitute legal advice. It is not intended to create, and receipt of it does not establish, an attorney-client relationship. For comprehensive legal advice tailored to your specific circumstances, we strongly recommend that you seek and pay for professional legal counsel.
MNW & ADVOCATES LLP