Purchasing land in Kenya incorrectly can result in investing in the wrong thing. Here are some things to consider before purchasing land.
The adage “buy land, they are not making it anymore” is probably familiar to you. which is accurate. The majority of land purchasers do so primarily as an investment in something they can start from zero and reap the rewards of.
It might end up being your family’s future home, a place to begin farming, or a chance to develop residential or commercial real estate as an investment.
Whatever your motivation, there are a few things you should think about when purchasing land in Kenya.
TIPS FOR PURCHASING LAND IN KENYA
Here’s how to do your homework before purchasing land so that you can be sure you’re making the right decision and don’t fall victim to fraud along the way.
- The Nature of the Land
Knowing the intended use of a piece of land—that is, whether it will be used for residential, commercial, industrial, or agricultural purposes—is crucial before making a purchase. This information should be known by the seller.
You should also be aware of the kind of ownership you will possess. In Kenya, the options are:
Freehold: As long as the terms of ownership remain the same, you will always be the owner of the land.
Leasehold: With a leasehold tenure, you can possess land for a set period of time and have the option to renew it when it expires. The Kenyan constitution sets a 99-year maximum term limit for non-citizens.
You can determine whether the land is a wise investment by understanding how it is used.
Additionally, prospective sellers may have different plans for using your land if you ever decide to subdivide it. Understanding the kind of land you are selling will demonstrate your expertise.
- Recognize typography
When you’re first looking to buy land, you’ll probably look it up online or get recommendations from friends and family. To get a view of the surroundings, you won’t be able to see the actual empty land. You can visualize and analyse the area you want to invest in using a neat feature of Google Earth.
- What Services Is Available on the Property?
When purchasing undeveloped land, it’s also important to consider whether or not utilities like electricity and water are present. The seller has already installed these in a few places on the property.
Additionally, you could pay to add these to yourself, such as boring a borehole. Since most people purchase land with the intention of building on it, being aware of this information will enable you to better plan by budgeting for some of these expenses.
- Is this land on riparian areas?
If your property was near a river or other body of water, you have probably seen or heard heart breaking tales of people losing their houses to flooding during the rainy season.
After building your house, you don’t want to find yourself in a situation where you have to move. Recall that it is forbidden to construct in Kenya on riparian land.
You can use the Ardhisasa to conduct a free land search to learn more specifics about the property.
In order to find out if the land you wish to buy is surrounded by any bodies of water, you can also hire a surveyor to survey the area and provide you with more information about its location and boundaries.
- Is the Land Accessible by Road?
Is there a path or road leading to the disputed land? Even though it may seem obvious, in some places there isn’t a road, so you have to make a path to get to the land. It is not a good idea to invest in a place that is hard for you to get to.
It is much worse if the road is situated on someone else’s property. That is, you have to pass through their territory in order to get to your destination. Therefore, visit the location and ask the seller for more detailed information before making a purchase.
- Steer Clear of Conned
It is important to remember this: never pay for anything you haven’t seen. A great deal of people fall for this con. After viewing photos of empty land, they don’t do their research and discover they were sold land that actually belongs to someone else. Just think of the horror!
To find out if the land has had a previous owner, make sure to do a title search and request the title deed.
THE KENYAN LEGAL SYSTEM FOR LAND PURCHASES
It is recommended that you locate legal counsel to assist you with the legal aspects of purchasing land in Kenya. For the simple reason that they are aware of what is needed, understand the nuances of the procedure, and have all the paperwork needed to ensure a smooth execution of the process.
To purchase land, follow these steps:
- Locate the Land
Online searches are the quickest way to locate land for sale in Kenya. Two of the most common factors people look for when searching for land are location and price, which you can filter your search for when using a property portals
- Perform an On-Land Search
Ask for a title deed from the seller after you locate the land and speak with them so you can use the new Ardhisasa platform to conduct a free land search. As soon as the property is added to the system and approved by the Ministry of Lands, the results will be available right away.
To use the land search, you must first create an account. Your phone number, email address, National ID and serial number, and a coloured passport-size photo will be requested by the system. Only Kenyans are currently able to register on the platform.
You can find out who owns the land, how big it is, and whether there are any restrictions attached to it by looking through the land search results. It is mandatory for all property owners to register on the Ardhisasa platform.
- Search the area where the land is situated.
If you are purchasing land outside of Nairobi, you will need to look up the land at the relevant Registry. For example, inquire with the Machakos Survey office if the land is located there.
The cost of this search varies amongst counties. All Land Registries’ contact information is available from the Ministry of Lands.
You can also find out through this search if there are any unpaid land and rent amounts owed to the government on the property. Before giving you ownership, the seller should resolve any outstanding issues.
Verify that the land rent, rates clearance certificates, and receipts you obtain indicate that there are no outstanding rates to pay.
- Obtain Maps of Surveys
You can determine the proper location of the land’s borders with the aid of survey maps. Survey maps are available upon request from the Ministry of Lands. Surveyors can also sell you the maps.
Once you have the maps, go to the property with the seller and the surveyor to draw boundaries so there won’t be any disagreements during the selling process.
Make sure you are purchasing actual land by paying a visit to the site.
- Verify the Consent of the Seller
The seller may need to provide documentation proving they have the right to sell the land, depending on the kind of land you are purchasing. You will benefit from the assistance of a lawyer at this point because different types of land need different consents.
- Verify the Consent of the Seller
The seller may need to provide documentation proving they have the right to sell the land, depending on the kind of land you are purchasing. You will benefit from the assistance of a lawyer at this point because different types of land need different consents.
- Put your signature on the contract for sale.
The seller’s attorney drew up the legally binding sale agreement. To guarantee that you both profit from the sale, this agreement protects both the buyer and the seller.
Three copies of the agreement will be filled out: one each for the seller, you, and the attorney. It is going to have:
- Seller and buyer information
- Description of the land
- The land’s cost and the payment schedule
- What happens if there is a contract breach and who is responsible for what during the process?
Not to mention the hidden costs: 2% in rural areas and 4% of the land value in urban areas is the stamp duty. The cost of the land determines the legal fees. The minimum fee charged by the lawyer is Kshs 35,000 if the cost of the land is less than Kshs 5M.
The sale agreement includes all of these expenses.
- Transfer of Land
The seller will prepare and sign the land transfer documents for the buyer once you have made all the payments. To make sure you get what you are paying for, you should get assistance from your attorney during this process.
In order to facilitate the land ownership transfer via the Ardhisasa online portal, the seller must have the necessary consent.
FAQ
What is the price of land in Kenya?
In Kenya, the area and size of the land determine its price. In Kiambu, for instance, the price of a one-acre plot of land would range from Ksh 5,000,000 to Ksh 50,000,000 or even more.
What is the stamp duty amount in Kenya when buying land?
In urban areas, stamp duty is levied at 4% of the land value, while in rural areas, it is 2%.
What qualifications are needed in Kenya to purchase land?
The land you wish to buy must first be located. After that, you must search the property and the seller to make sure the name on the title corresponds to the stated landowner. Getting legal advice before making any kind of property purchase is best practice.
In Conclusion
You’ll end up saving time and money if you purchase land in Kenya with due diligence. Although the process may appear difficult at first, it will ultimately be worthwhile.
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