Are you considering or ever thought of buying land in Kenya? Real estate is one of the investments with greater ROI, it is however crucial to be well-informed about the processes of owning a piece of land in Kenya.
While a true Kenyan will tell you talking to a local drunkard before buying land in Kenya is a key point, there are some official and legal procedures you should follow before deciding to buy that piece of land. To help you navigate the complexities of land acquisition and avoid being conned, I have prepared a comprehensive guide outlining the procedures and essential steps you should follow when buying land in Kenya.
Table of Contents
Check the Title Deed
Before proceeding with any land transaction, ask to see the title deed or a copy of the title deed from the seller. To ensure you’re dealing with the rightful owners and not middlemen as well as that there are no caveats on the title, perform a search at the Ministry of Lands. This search incurs a cost of Ksh 520. Official search also reveals whether there are any encumbrances against the title i.e. if the land is held as security against money borrowed from a financial institution(s). My advice is you rather spend the five hundred and twenty shillings and do the search than assume and end up losing huge amount of money to trickery and conning.
Verify Land Rates
Before buying land in Kenya, perform a search with local authorities to confirm if there are any unpaid land rates associated with the property. If such dues exist, work out an agreement with the seller on how they will be settled. It’s important to note that land cannot be transferred if there are outstanding land rates.
Obtain Maps
Visit the Ministry of Lands and purchase two maps: one illustrating the exact measurements of the land you’re buying (known as a mutation map) and the other displaying neighboring lands. Each map costs Ksh 350. On the maps, it is advisable to check whether an amendment was done appropriately and indicated on the amendment section. Some mutation forms are prepared erroneously.
On-Site Verification
Visit the land you intend to purchase with your two maps and, if necessary, a surveyor. Verify the details on the maps by checking all the beacons to ensure they match the physical property. This is such a crucial step when buying land in Kenya because you might end up buying a non-existent piece of land.
Negotiate and Draft an Agreement before buying land in Kenya
Sit down with the seller and negotiate the price. It’s essential to document the agreement in writing. While you can engage a lawyer to draft the agreement, it’s not mandatory. According to the Law Society of Kenya (LSK), legal fees for agreements depend on the land’s value. For land worth less than 1 million, you pay the lawyer Ksh 3000, while for land valued above 1 million, the fee is Ksh 8000.These rates might vary due to facilitation fees and all that.
Note: The presence of the spouse is required during this step.
Payment and Documentation
Pay the agreed-upon amount, but refrain from paying the full amount in one go. To ensure a clear payment trail and avoid potential disputes, use bank transfers or direct payments to the seller’s account. Avoid cash payments when buying land in Kenya just so you have evidence.
Lands Control Board Meeting
Schedule a meeting with the Lands Control Board (LCB), which typically convenes monthly. This process costs Kshs 1,000. There’s also the option of booking a special LCB meeting for Kshs 5,000. The LCB will issue consent for the land to be sold.
Final Payment
Once you have the LCB’s consent, make the final payment to the seller.
Transfer of Ownership
To initiate the transfer of ownership, gather the necessary documents, including a recent land search (not more than 6 months old), a clearance form from the County Land Rates department, your two maps, the written agreement, KRA PIN, two passport-sized photos, and a copy of the title deed. Submit these documents to the Ministry of Lands, where the cost for changing ownership is Ksh 5,000.
Stamp Duty Payment
Following the transfer of ownership, you’ll be required to pay stamp duty. The rate is based on the value of the land, with 4% in municipalities and 2% in reserves.
Confirm Ownership
Once you’ve completed all the necessary steps, don’t forget to perform a search at the Ministry of Lands to confirm that the land is now registered in your name.
Buying land in Kenya can be a secure and rewarding investment, but it’s essential to be diligent and follow these procedures to ensure a smooth and legally sound transaction. Due diligence is the bare minimum; you will either need a lawyer to but the land or defend you in court.