Frequently Asked Questions
Get answers to the most common questions about property investment in Kenya
To legally purchase land in Kenya, you need:
- A valid title deed (freehold or leasehold)
- Conduct a search at the lands registry to verify ownership
- Obtain clearance certificates from county government and NEMA
- Have the sale agreement drafted by a qualified lawyer
- Pay stamp duty (4% for urban areas, 2% for rural areas)
- Complete transfer documents at the lands office
Always work with reputable real estate companies and lawyers to avoid fraud.
To verify a title deed's authenticity:
- Conduct an official search at the Ministry of Lands (costs ~Ksh 500)
- Check the title number matches records at the lands registry
- Verify the seller's identity matches registered owner
- Confirm there are no encumbrances or caveats
- Check the survey plan matches physical beacons
- Consult a qualified lawyer for professional verification
Beware of forged title deeds - always conduct due diligence.
| Freehold | Leasehold |
|---|---|
| Absolute ownership indefinitely | Temporary ownership (typically 99 years) |
| No ground rent payments | Requires annual ground rent payments |
| Easier to transfer/sell | May need landlord consent for transfers |
| Common in rural areas | Common in urban areas and government land |
| Higher resale value | Value decreases as lease expires |
Note: Leasehold properties can sometimes be converted to freehold after meeting certain conditions.
Based on recent market trends (2023-2024), these areas show highest appreciation:
Nairobi Metropolitan
- Ruaka (12% annual growth)
- Ongata Rongai (11%)
- Kitengela (10.5%)
- Ruiru (10%)
Coastal Region
- Mikindani (9%)
- Bamburi (8.5%)
- Diani (8%)
Other Hotspots
- Naivasha (9.5%)
- Thika (9%)
- Machakos (8%)
Factors driving growth: Infrastructure development, urbanization, and proximity to economic zones.
Beyond the purchase price, budget for these additional costs:
Legal & Government Fees
- Stamp duty (2-4% of property value)
- Legal fees (1-2%)
- Registration fees (~Ksh 5,000)
- Search fees (~Ksh 500)
Ongoing Costs
- Land rates (annual county charges)
- Ground rent (for leasehold, ~Ksh 5,000/year)
- Property insurance
Development Costs
- Survey fees (~Ksh 15,000-50,000)
- Site clearance and fencing
- Utility connections (water, electricity)
Tip: Always budget 10-15% above purchase price for these additional costs.
Most developers offer flexible installment plans with these common structures:
1. Reservation Phase
Pay reservation fee (typically Ksh 10,000-50,000) to secure the plot
2. Deposit Payment
Pay 10-30% of total price within 30-60 days
3. Monthly Installments
Balance paid over 6-24 months (sometimes longer)
4. Completion
Title deed processed after full payment
Key Considerations:
- Interest rates vary (typically 0-12% p.a.)
- Late payments may attract penalties
- Some plans offer construction financing after plot payment
- Always get a written agreement detailing payment terms
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