Ask A Lawyer: Can foreigners buy land in Kenya?

The Legal Framework on Foreign Land Ownership in Kenya

Kenya’s land ownership laws come from the Constitution of Kenya (2010), the Land Act (2012), and other statutes, such as the Land Registration Act (2012). 

These laws regulate land tenure and transactions, including those involving foreigners.

Foreigners can buy land in Kenya, but they face specific restrictions: 

• Article 65 of the Constitution limits foreign ownership to leasehold land for up to 99 years. 
• Foreigners cannot own freehold land, but they may lease land for extended periods.

As such, not all land types are accessible to foreigners. Kenya’s Constitution and land statutes limit foreign ownership as follows:

• Foreigners and foreign companies cannot own freehold land.

• Foreign ownership is limited to leasehold land, for a term not exceeding 99 years.

• Foreigners are barred from owning agricultural land directly unless via a Kenyan-incorporated company and subject to approval by the Land Control Board.

  Types of Land Foreigners Can Own

• Leasehold Land: Foreigners can buy leasehold land, typically for 99 years. They can renew the lease, but the government controls the land tenure.
• Agricultural Land: The Agricultural Land Control Act (1967) prohibits foreigners from owning agricultural land. This protects Kenya’s agricultural sector. However, foreigners can lease land for agricultural investment, following specific legal guidelines.
• Land in Special Economic Zones (SEZs): Kenya’s government has set up SEZs to attract foreign investment in sectors like manufacturing, technology, and logistics. Foreigners can lease land in SEZs, often for up to 99 years.

Restrictions to Ownership of Foreign Land in Kenya

Several legal restrictions regulate foreign land ownership to safeguard local interests.

• Leasehold Ownership Only: Foreigners may only acquire land on a leasehold basis, not freehold.
• Land Ownership Limits: Foreigners cannot own more than 100 acres outside SEZs. This limit prevents land speculation and keeps land available for local use.
• Land Transactions Approval: Foreign land acquisitions need approval from the National Land Commission (NLC). This ensures all transactions comply with Kenyan law.
• Land Use: Foreigners must align land use with local zoning regulations. They may need additional permits for specific uses.

 

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