ILN: Buying and Selling Real Estate - An International Guide

[BUYING AND SELLING REAL ESTATE IN KENYA]

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FORMS OF CONVEYANCE IN KENYA A. LAND RIGHTS IN KENYA

terms or leasehold terms exceeding 99 years. B. TYPES OF LAND TRANSACTIONS IN KENYA 6. Transfer of land: - Section 43-49 of the Land Act. A transfer will include a conveyance, transfer, assignment, transfer of lease and other instrument that records transfer of disposition in land. A transfer gives the transferee land ownership rights once the transfer deed is registered. A transfer is made subject to the permitted user, conditions on title (if any) and interest in land (leasehold/freehold). Transfers are made subject to any other interests registered against the title. If a long- term lease is registered against the title then the transfer shall be subject to lease. If a mortgage/charge is registered against the title, then the transfer shall be subject to the charge. 7. Transmission of land: - this is disposition of interest in land after the death of the registered owner. Under Section 48 of the Land Act upon death of a co-owner of land in a joint proprietorship then the remaining interest shall be transmitted to the surviving co-owner. Upon death of a tenant in common then his/her share shall be transmitted to his/her estate. The same applies to the sole owner of any title, then his/her title would be transmitted to their estate under Section 50 of the Land Act. 8. In the event of bankruptcy, the bankrupts’ trustee shall be registered as the proprietor under Section 52 Land Act. Under Section 53 the title to a liquidated/wound up company is passed on to the liquidator through a transmission

1. Land in Kenya is classified as either public, community or private land under Article 61 (2) of the Constitution. 2. Public land includes all land held by state agencies, county and national government and includes minerals, forests, roads and water bodies. Public land is held by government and is managed by the National Land Commission. No dispositions can be made of public land except by legislation. (Article 62 Constitution Of Kenya 3. Community land is land held by authorized group representatives of any community or held by a specific community. It includes ancestral and grazing rights. No dispositions can be made on community land except by legislation in Parliament (Article 63). 4. Private land is land held by individuals or other registered entities. It includes freehold land and leasehold land. Dispositions of privately held land can be made by private contract. (Article 64 Constitution). 5. Article 65 of the Constitution places a limit as to the land rights of non-citizens. Non-citizens can hold land for a maximum 99-year-old leasehold term. A non-citizen is one who has not acquired Kenyan citizenship or if it is a company/trust one whose majority ownership is comprised of non-citizens. In as much as the provision is in the Constitution it has not yet been effected. In practice non-citizen individuals and entities still own land under freehold

ILN Real Estate Group – Buying and Selling Real Estate Series

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