Nairobi’s skyline is a dynamic blend of modern skyscrapers and upscale high-rise living, reflecting a fast-growing city full of energy and opportunity. This modern hub attracts both local and foreign investors looking to capitalize on the real estate boom.

---

For foreigners who want to own a slice of the “City in the Sun”, this guide will help you understand the legal requirements for buying a property in Kenya, specifically focusing on off-plan sectional properties like apartments, townhouses and offices.

1. Can Foreigners Own Property in Kenya?

Yes—foreigners can legally own property in Kenya but only on a leasehold basis. Under the Constitution of Kenya 2010, non-citizens cannot hold absolute freehold titles, they are restricted to holding property under leases of up to 99 years.

In practice, most off-plan developments in Kenya are already structured as leasehold properties, meaning a foreign buyer can hold the title for the sectional unit. If a developer’s “mother title” is freehold, we inquire if they intend to convert it to leasehold so that the individual sectional titles issued to buyers are valid leaseholds that you can legally own.

2. Understanding Off-Plan Purchases

An off-plan purchase means buying a property before it is completed, often while it is still in the design or construction phase. Investors prefer this route because the properties are typically cheaper than completed units and offer excellent potential for capital appreciation.

However, buying off-plan carries risks, such as construction delays or the final build failing to meet expectations. To minimize these risks, you need rigorous due diligence and a rock-solid sale contract.

3. The Buying Process: How We Help

Step 1: Rigorous Due Diligence

Before you sign any documents or pay a deposit, our legal team conducts comprehensive due diligence to protect you from fraud and vulnerable investments. This due diligence covers:

Land Rights & Approvals

We verify the developer’s title by conducting a Lands Registry search and check for proper land use and zoning compliance. We also ensure the developer has obtained statutory approvals from the relevant authorities such as the National Environment Management Authority (NEMA), and development permission from the relevant county government. If any approvals are missing, the project is legally vulnerable.

Developer Vetting

We conduct a Companies Registry search to verify that the developer is a validly registered entity and to show its ownership. We also assess their track record, and conduct court searches to ensure they have no history of litigation with past buyers or land disputes. A credible developer will work with a professional team and we check that they have a registered architect, engineer and contractor as well as advocates.

Step 2: Securing your Contract

Once the project passes our due diligence, the next step is signing the legal documents.

The Agreement for Sale

Standard developer sale contracts are heavily one-sided. We review and negotiate this agreement to ensure it includes crucial protections, such as strict completion timelines (a long stop date), refund provisions in case of delays, and protection mechanisms in instances of force majeure events that affect or delay construction.

Step 3: Construction & Post-Construction Compliance

During the construction period, you will typically pay the purchase price in staged instalments.

Once the building is finished, we ensure the developer obtains the necessary post-construction approvals before you take possession, including the Certificate of Practical Completion and the Certificate of Occupation.

Step 4: Title Registration & Transfer

To legally transfer the property to you, the developer must apply for registration of a Sectional Plan. This is a geo-referenced plan prepared by a surveyor dividing a building into individual units. This is approved and registered at the Land Registry.

The Land Registrar then issues individual sectional titles for each unit in the developer’s name.

After a government valuer assesses the value of the property, you are required to pay the mandatory stamp duty, and the sectional title is then transferred into your name.

At this stage, we assist you to register an Ardhisasa account. This is the Land Registry online portal where the transfer of title takes place. We also follow up with the developer’s lawyers to ensure that the title transfer is completed.

4. What are the Costs and Taxes?

When budgeting for your property, you must account for the following expenses:

• Purchase Price: Usually paid via a 10%-30% initial deposit, with the balance paid in instalments.
• Stamp Duty: A mandatory tax, typically 4% of the property’s value in urban areas, payable within 30 days of valuation.
• Project Costs: Includes registration costs, utility installations and service charge deposits.
• Legal Fees: Engaging an independent lawyer is a critical investment. Legal fees are modest compared to the financial loss of a poorly structured transaction.

5. Common Mistakes to Avoid

• Failing to conduct independent due diligence
• Relying on the developer’s lawyer (who acts solely for the developer, not you). Engage a qualified property lawyer to ensure your interests are protected.
• Paying deposits without a legally binding, well-structured agreement for sale
• Accepting weak contracts that lack completion dates or refund penalties.

6. Why Choose our property lawyers?

A good property lawyer is a watchdog over your investment. We hold your hand throughout the entire process; from the moment you spot your dream property to the day you hold your keys and title. We conduct comprehensive due diligence, negotiate fair contracts, and ensure your sectional title is transferred to secure your ownership.

Don’t leave your off-plan purchase to chance. Contact us today to secure your investment with confidence.