RENEWAL AND EXTENSION OF LEASEHOLD PROPERTIES IN KENYA

Introduction

In Kenya, land tenure is governed by two main systems: Freehold and Leasehold.

• Freehold Tenure allows Kenyan citizens to own land absolutely and indefinitely, without any time limitation. However, this form of tenure is not available to foreigners, who are constitutionally restricted from owning freehold land.
• Leasehold Tenure, on the other hand, grants an interest in land for a fixed period, subject to the payment of land rent to either the National Government or the County Government, depending on the location of the property. For non-citizens, the Constitution and relevant statutes limit lease terms to a maximum of 99 years.

 

Renewal of Expired Leases

Renewal of a lease becomes necessary after the lease term has expired and where the lessee failed to apply for an extension while the lease was still valid. Upon expiry, the interest in the land technically reverts to the lessor (usually the government), and the lessee must apply to have the lease renewed.

 

Extension of Leases Before Expiry

The extension of a lease is a proactive measure undertaken before the expiry of the existing lease term.

Section 13 of the Land Act, 2012 provides that:

• The National Land Commission (NLC) is mandated to notify the registered lessee of the impending expiry of their lease at least five (5) years before the lease expires.
• If the lessee fails to respond to the notification within one (1) year, the NLC is required to:
• Publish the notice in at least two newspapers of nationwide circulation.
• The lessee is then required to respond within six (6) months from the date of publication.

 

Process for Renewal or Extension of Lease

The procedural steps for renewing or extending a leasehold title in Kenya are as follows:

1. Engage a Licensed Physical Planner
• The process begins by engaging a licensed physical planner to prepare and submit applications for planning approvals from the relevant County Government.
2. Submission of Planning Documents
• Upon receipt of PPA2 forms and the preparation of a Planning Brief (in triplicate), these documents are submitted to the Director of Land Administration or the County Land Administrator, as applicable.
3. Circulation for Comments
• A circulation letter is issued by the Land Administrator to consult with:
• The Director of Physical Planning,
• The Director of Surveys, and/or
• The County Physical Planner.
4. Letter of No Objection
• Once comments are received and there are no objections, a letter of no objection is issued by the Director of Surveys.
5. Provisional Approval
• The Director of Land Administration then issues a provisional approval for the extension or renewal of the lease.
6. Re-Survey of the Property
• The parcel of land is re-surveyed by a registered surveyor, and a new Registry Index Map (RIM) is prepared.
7. Re-Valuation of the Property
• A valuation is conducted to determine the new land rent based on the revised land use, zoning, and market rates.
8. Final Approval
• The Director of Land Administration issues a final approval for the lease extension or renewal.
9. Preparation of Legal Documents
• A licensed advocate prepares the necessary documents for:
• Surrender of the old lease, and
• Preparation and registration of a new lease reflecting the new lease term.
10. Issuance of New Title
• Upon registration of the new lease, a new title deed or lease certificate is issued to the lessee.

 

Conclusion

Renewal and extension of leasehold land in Kenya is a multi-step process involving several government departments and professionals, including physical planners, surveyors, valuers, and advocates. Lessees are advised to initiate the extension process well before the lease expiry to avoid complications and potential loss of rights over their property.

 

Disclaimer: This article is intended for general information purposes only and should not be construed as legal advice. For specific legal guidance, please consult a qualified land law practitioner in Kenya.