Can a foreigner buy a Land in Kenya -The question of whether or not foreign investors can legally own and transact business with property in Kenya is a common one among those investors who are interested in establishing a presence in Kenya. The short answer is that non-citizens can own property in Kenya and enjoy all of the legal rights and protections that Kenyan citizens enjoy.
However, they are subject to restrictions with regard to the kind of tenure they can hold in land, and they are prohibited from owning or dealing with agricultural land. The longer answer is that non-citizens can own property in Kenya and enjoy all of the legal rights and protections that Kenyan citizens enjoy. Justice Gacheru made this observation in the case Kunde Road Residents’ Welfare Association v. Deshun Properties Company Limited and Four Others (ELC Petition No. 1433 of 2013), which stated that,
“…The ownership of land in Kenya is guaranteed to any citizen or resident by Article 40 of the Constitution. Granted, this provision is not absolute because it is subject to Article 65 of the same document, which states that non-citizens may only own land in the form of a leasehold for a term of 99 years and no longer. This provision is not absolute. According to my interpretation of Article 65(2) of the Constitution, there is the possibility that non-citizens would one day be able to engage in transactions for the purchase of freehold interests in real estate. Can a foreigner buy a Land in Kenya
Can a foreigner buy a Land in Kenya
Although there is no rule that specifically prevents non-citizens from purchasing and owning freehold land, the Constitution does limit ownership to a leasehold for a period of 99 years. In spite of this, there is no law that specifically prohibits non-citizens from doing so. My investigation has led me to the conclusion that the transfer of the property in question to the first respondent, who is not a citizen of the United States, did not violate any laws, despite the fact that the first respondent held a freehold interest in the land. The most important thing to take up from this is that the 1st Respondent has secured a leasehold interest for 99 years…
Both the Constitution of Kenya and the Land Control Act have provisions that place limitations on the ability of non-Kenyans to hold land in the country. The next section delves into the prohibitions that are imposed by these two laws. Can a foreigner buy a Land in Kenya
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Constitution of the Republic of Kenya
Article 65 of the Constitution stipulates that non-citizens cannot own land in any capacity other than as lessees for a period of time not to exceed 99 years. According to the provisions of the Constitution, if a non-citizen currently possesses freehold land or leased land with a period that is longer than 99 years, then the non-interest citizen’s in the land will be converted into a leasehold interest for 99 years. Despite this, a non-citizen has the ability to submit a request for an extension or renewal of the lease once the initial 99 years have passed. Can a foreigner buy a Land in Kenya
Who exactly is a citizen then? Citizenship in Kenya can be obtained in one of two ways: either by being born in the country or by registering their birth in the country. One can obtain citizenship through registration, marriage to a citizen for a period of at least seven years, lawful stay in the country for a period of at least seven years, or adoption into a family that already consists of a citizen. As far as companies are concerned, they will only be considered citizens if every one of their shares is owned by a Kenyan citizen, or if the beneficial interest of the trust that holds the shares is owned by a Kenyan citizen. If the shares are held in trust, the beneficial interest of the trust must be held by a Kenyan citizen. Can a foreigner buy a Land in Kenya
Act on the Control of Land
The Property Control Act (the Act) places limitations on the ownership of agricultural land and land located inside land control regions by individuals who are not citizens of the United States. This land is, in a general sense, land that is located outside of a municipality, a township, or a market, or land that the Minister of Lands designates as being controlled and subject to the protections in the act. Additionally, the Minister of Lands may designate land as being controlled and subject to the protections in the act. Can a foreigner buy a Land in Kenya
When section 9 of the Act is read in conjunction with section 6, it states that any transaction involving agricultural land or controlled land that purports to sell, transfer, lease, charge, partition, or exchange land with a non-citizen is null and void for all intents and purposes. This provision is found in section 9 of the Act. Can a foreigner buy a Land in Kenya
For the purposes of the Act, a person is considered to be a non-citizen if they are not citizens by birth or by registration, and if they are a private corporation or co-operative society, they are considered to be non-citizens if their shareholders or members are not all citizens. However, the President of Kenya has the authority to exempt a non-citizen from the terms of this Act in certain circumstances. Can a foreigner buy a Land in Kenya
The repercussions of the restrictions that were imposed by the Land Control Act have more far-reaching implications than those that were outlined in the Constitution. If a foreign investor wants to buy land in Kenya, he or she must do so within of or in close proximity to one of the country’s cities or towns unless the President of the Republic of Kenya grants them an exception. However, a practice has emerged in which an attempt is made to exploit a certain loophole in the Land Control Act in order to make it possible for non-citizens to purchase agricultural land or to sell, transfer, lease, charge, partition, or exchange it.
When the Act is dissected in greater detail, it becomes clear that it does not place any restrictions on the trading of shares in publicly traded corporations that own agricultural land. Therefore, the ownership of agricultural land by a foreign investor may be achieved indirectly through the ownership of shares in a public corporation that holds agricultural land. Therefore, the ownership of agricultural land by a foreign investor may be achieved indirectly through the ownership of shares in a public business that also owns agricultural land. Can a foreigner buy a Land in Kenya
Conclusion
In actuality, the constraints mentioned above do not prevent non-citizens from purchasing land in Kenya and investing in it. In an activity that will be carried out by the National Land Commission and is scheduled to be finished in the year 2022, the tenure of the properties owned by non-citizens who are currently in possession of freehold land or leasehold land for a term greater than 99 years will be converted to that of leasehold land for a term of 99 years, and new leasehold titles will be issued to those non-citizens. Non-citizens have the ability to submit an application for the renewal or extension of their leases before the leasehold terms have run their course, as was indicated before in this article. Can a foreigner buy a Land in Kenya
In the case of agricultural land, a foreign investor may submit a request for an exemption to the President of the United States; alternatively, if the investor does not have access to the land, the investor may acquire ownership or other rights by purchasing a stake in a public corporation. Can a foreigner buy a Land in Kenya
Please do not hesitate to get in touch with us if you need any legal advice regarding issues concerning the purchase of agricultural land or the conversion of land tenures. Can a foreigner buy a Land in Kenya
