The delight of buying land in Kenya is unparalleled. Land is not only a production factor, but it also provides a sense of security. However, it’s tricky to buy land in Kenya. Many Kenyans, especially those in the diaspora, end up being conned when while attempting to buy land in Kenya.
If you’re planning to acquire land, it’s prudent to understand the entire process to avoid pitfalls that could expose you to fraud. This article takes you through the process of buying land in Kenya.
Steps of Buying Land in Kenya
Locate the land
The first critical step of the process is to find a suitable land you want to purchase. The location and type of land you purchase depend on what you want to use the land for. Thus, familiarize yourself with the land zoning in the area of your interest.
In Kenya, there are four major types of land zones: commercial, residential, agricultural, and industrial. Take time to find a location perfect for you. Search for land listed in local newspapers or online marketplaces.
You can also liaise with accredited real estate agents to guide you toward the perfect land matching your intended use. Consider the topography, type of soil, type of vegetation, plot size, availability of amenities, proximity to town, and other factors to determine the suitability of the land.
Pay a Visit
Once you’ve identified a suitable parcel of land in your desired area, it’s essential to arrange a physical site visit to ascertain the existence of the land. The site visit allows you to verify that the land has all the amenities as advertised by the real estate agency firm. Many real estate agents in Kenya offer free sites to clients.
Conduct a Land Search
The next step is to conduct a land search. The search serves the following purposes:
- Determine if the land actually exists.
- Identify the ownership details of the land.
- Identify the actual acreage of the property.
- Find out other interests that have been registered on the land.
- Reveal any encumbrances on the property, e.g., caveats, charges, or mortgages attached to the land.
You can apply for the land search in two ways: apply in-person or apply online.
Apply online
Online search is one of the efficient ways to perform a land search because you can apply remotely and receive results almost immediately. The online land search is conducted through the Ardhisasa platform. You’ll need to register with Ardhisasa to access the service.
Key details required to complete the search include your name, National ID number, and parcel number (title deed number). The property owner must be registered on the platform for you to get the search results.
Related: How to Conduct a Land Search on Ardhisasa
Apply in-person (manual)
The manual land search involves visiting the land offices nearest to the land of interest. At the land offices, you’ll pay Ksh500 and obtain the search application form (RL 26). Proceed to fill in the details in the form and attach all necessary documents, including copies of the identification card, title document, and KRA pin certificate.
Once you’ve submitted the duly filled form, you’ll receive the results after a few days. Typically, it takes three days to get search results at Lands offices.
Performing the search at the county land registry is essential, as it helps you to determine if there are any outstanding land rates. You should consider the rates when deciding the property’s price with the seller.
Obtain the Survey Maps
Survey maps are critical requirements when buying land in Kenya. After completing the land search, you need to obtain two survey maps. The Ardhisasa platform provides the maps to you upon request.
Alternatively, you can acquire the survey maps from a local surveyor at approximately Ks.350 each. Then, visit the property with the seller and the surveyor to verify the boundaries and ensure accurate placement of beacons. Don’t ignore this process to avoid disputes during and after the sale.
Once you’ve been furnished with the completion documents, you must pay the outstanding balance to the seller as outlined by the sales agreement. You can hire an advocate to guide you through this process.
Sign Sale Agreement
In this step, the seller’s lawyer draft a sale agreement. The sale agreement sets out the terms and conditions of the land sale and purchase, including the agreed price, payment mode, and completion period. Both parties will sign the sale agreement if there are no objections.
The sale agreement is legally binding until the full payment is made and the land transfer is completed. In addition, as the purchaser, you must pay a deposit of at least 10% of the agreed purchase price to the seller or the seller’s advocate on or before agreement execution.
Obtaining Completion Documents and Payment of the Balance
The seller should provide you with the completion documents required for land registration and title transfer. The completion documents include the following;
- Original title deed,
- Copies of the seller’s KRA PIN certificate and ID card
- Duly filled and signed transfer forms
- The valuation report for the land
- The commissioner’s consent to transfer
- The lessor’s consent to transfer
- Rent and rates clearance certificates
Once you’ve been furnished with the completion documents, you must pay the outstanding balance to the seller as outlined by the sales agreement. You can hire an advocate to guide you through this process.
Land Valuation and Payment of Stamp Duty
The next step in buying land in Kenya is to obtain a land valuation from a government inspector. The valuation process facilitates accurate determination of the taxes to be paid.
Once you receive the valuation report, you can pay the stamp duty and transfer fees. The stamp duty to be paid is calculated based on the value of land – 4% for any land in a municipality and 2% for those in rural areas.
Land Control Board Consent and Clearance
The Land Control Board comprises county commissioners and local elders. The purpose of clearance with the Land Control Board is to promote transparency in the land acquisition process by ensuring all involved parties consent to the sale. It will cost Ksh.1000 to secure a meeting with the Land Control Board.
Land Transfer
Lastly, the property is transferred to the new owner once the full payment is made and clearance is done. Both the seller and the buyer sign the transfer form.
The seller must provide relevant documents to facilitate the transfer, including two passports, a KRA pin, the sale agreement, the old title deed, and consent from the Land Control Board.
FAQs
What is the cost of land in Kenya?
The cost of land ranges between Ksh1million-Ksh490 million per acre, depending on the locality and size of the property. Land is most expensive in Upper Hill, with an acre going for Ksh490 million.
Can foreigners buy land in Kenya?
Absolutely. Under the Kenyan Constitution (2010), the Land Registration Act (2012) and the Land Act (2012), foreigners can buy and own land in Kenya. However, a foreigner can obtain property on a leasehold tenure.
Under the leasehold tenure system, foreigners can own land for a fixed period, ranging from a few decades to 99 years, depending on the location and purpose of the property. The maximum lease term for urban land is 99 years, while 999 years is granted to agricultural land leases. Any leasehold tenure is renewable at the end of the lease period.
What is Stump Duty on Purchase of Land in Kenya?
Stamp duty is payable at different rates based on the location of the land. The duty is levied at a flat rate of 4% for properties situated in municipalities and 2 percent for land situated outside municipalities. Stamp duty must be paid before the property is transferred and registered.
Can I obtain an exemption from Stamp Duty?
Absolutely. Stamp Duty exemptions can be obtained for transactions under the following circumstances:
- Transfer of land between spouses
- Transfer of property to charitable organizations
- Transfer of family property to family members following the death of a member in whose the land was registered.
- Transfer of a property owned by a family to a company under full ownership of the same family.
How do I make Stamp duty payments?
You can pay the stamp duty via the iTax system. To make the study duty payment, visit the iTax platform and follow these steps.
- Log into the KRA’s ITax portal.
- Head to the payment menu and select “Payment Registration.”
- For the tax head applicable, select “Agency Revenue.”
- For the subhead, select “Stamp Duty.”
- For the payment type, select “Self-Assessment” followed by the “Payment Registration”
- Fill in the Bill Reference Number, which is your transaction reference number.
- Select the applicable type of instruction for the drop-down list.
- Proceed to fill in the details of the buyer (transferee) and seller (transferor).
- Fill in the “Declared amount, the “Date of Instrument, and “Tax rate” under the obligation information for Stamp Duty.
- Select your preferred mode of payment and then submit the filled-out form to get the payment slip. Proceed to make the stamp duty payment either via the bank or Mpesa (Paybill no: 572572),
