Kenya is a beautiful country with diverse landscapes ranging from lush forests and Savannah grasslands to stunning beaches along the Indian Ocean. It’s no wonder that many people are interested in buying land in Kenya, whether for personal use or investment purposes. However, buying land in Kenya can be a complicated process, and it’s essential to understand the legal requirements and potential pitfalls before making a purchase. In this blog, we’ll take a closer look at what you need to know before buying land in Kenya.

1. Identify the purpose of the land

Before you start searching for land to buy, it’s essential to identify the purpose of the land. Are you buying it for personal use or investment purposes? If you’re planning to develop the land, what kind of development do you have in mind? Different types of land have different zoning requirements, and you need to ensure that the land you’re interested in is zoned for your intended use.

But what is zoning? Zoning is a legal practice that allocates different areas of a town or city for different uses, such as:

1. Residential
2. Commercial
3. Industrial
4. Urban services

This helps to organize land use and ensure the health, safety, and well-being of the community. There are various types of zoning codes for each use, including different types of residential, commercial, industrial, and urban services zones. Each type provides opportunities for different kinds of development and usage within the designated area.

2. Research the location

Once you’ve identified the purpose of the land, the next step is to research the location. Look at factors such:

1.  Zoning Regulations: It is important to check the zoning regulations for the area to ensure that the intended use of the land is permitted.
2. Access to Basic Amenities: The availability of basic amenities such as water, electricity, and roads is critical when choosing a location.
3. Soil Quality: Soil quality is a critical factor to consider if the land will be used for agriculture or construction purposes.
4. Natural Hazards: Areas prone to natural hazards such as flooding, landslides, and earthquakes should be avoided or approached with caution.
5. Proximity to Urban Centers: The location’s proximity to urban centers and potential for future development can significantly affect the land’s value.
6. Security: The security of the area should be evaluated to ensure that the land is not located in a high-crime area.
7. Environmental Considerations: The land’s location should be evaluated to ensure that it does not have any significant environmental concerns or potential environmental hazards.
8. Land Title: The title of the land should be checked to ensure that it is genuine and free from any legal disputes or claims.
9. Market Trends: Understanding the market trends and prices of the surrounding properties can help determine the value of the land and assist in negotiations.

3. Engage a reputable real estate agent

It’s advisable to engage a reputable real estate agent who understands the local property market and can guide you through the buying process.You can contact any of our agents to get assistance. A good agent will help you in:

1. Property Search: Real estate agents assist you in finding suitable properties that meet your specific requirements, such as location, price, and size.
2. Property Inspection: Agents also arrange property inspections, where you can view the land and assess its condition and suitability.
3. Price Negotiation: Agents can negotiate the price and terms of the sale on your behalf, to ensure that they get the best possible deal.
4. Due Diligence: Real estate agents working in conjunction with an advocate  help you conduct due diligence on the property, which may include checking the property documents, ensuring that all the necessary permits are in place, and verifying that the seller has the legal right to sell the property.
5. Contract Preparation: Agents can help prepare and review contracts and other legal documents related to the land purchase, to ensure that the terms and conditions are fair and favorable for the buyer.
6. Closing Process: Finally, agents can also assist with the closing process, which involves transferring the property ownership, ensuring that all the necessary paperwork is completed, and the sale is legally binding.

4. Conduct due diligence

Before making an offer to buy land, it’s crucial to conduct due diligence to ensure that the land is legitimate and free from any legal issues. This includes verifying the ownership of the land, checking if there are any encumbrances on the land, and ensuring that all necessary permits and approvals have been obtained.

Presently, the Ministry of Lands is engaged in the implementation of digital decentralized systems for land registry records. However, for a prolonged period, our land registries and offices have relied on manual record keeping, which has proven susceptible to subversion and corruption. There are well-documented instances of original document abuse, such as forgeries and multiple title allocations. In Kenya, for a considerable duration, it was unfeasible to decisively confirm the authenticity of the following matters:

1. Proprietorship of a particular property by a given individual;
2. Adherence to planning and environmental laws during property development;
3. Existence of multiple title allocations on a property; 
4. Authenticity and legitimacy of records obtained from relevant land registries without any falsification.

An investigation known as a due diligence survey can help confirm crucial details regarding a property, these include:

1. Verifying that the boundary beacons are accurately placed and match the Registry Index Maps (RIM) of the property. 
2. Ensures that the RIM precisely identifies the property and reflects its true dimensions and boundaries on the ground. 
3. Identify whether there are any squatters, structures, or other encroachments on the property 
4. Checks for any restrictions on accessing or leaving the property.

You will need a copy of the land title deed from the seller to facilitate the survey, and the report is normally generated within three working days.

5. Get legal advice

It’s essential to get legal advice from a qualified lawyer who specializes in property law. The lawyer will help you review the sale agreement and advise you on the legal requirements for transferring ownership of the land.

Some of the ways a lawyer assists in the land purchase process include: 

1. Firstly, the lawyer will carry out a search at the relevant Land Registry to ensure that the property being purchased is clean and free from any encumbrances, such as charges, mortgages, and caveats. This search will also verify that the seller is the rightful owner of the property and has the legal right to transfer ownership.
2. Secondly, the lawyer will prepare the sale agreement and ensure that all the relevant clauses are included to protect the interests of the buyer. They will also ensure that the agreement is properly executed, witnessed, and stamped in accordance with the law.
3. Thirdly, the lawyer will ensure that all the necessary taxes, levies, and fees are paid, including stamp duty, land rent, and rates, among others. They will also ensure that the transfer of the property is properly registered at the relevant Land Registry.
4. Lastly, the lawyer may also advise their client on the various laws and regulations governing land ownership and use, such as zoning laws, environmental laws, and building regulations, among others.

6. Negotiate the price

Once you’ve conducted due diligence and obtained legal advice, it’s time to negotiate the price with the seller. It’s advisable to have a budget in mind and stick to it to avoid overpaying for the land.

Some of the factors to look out for when negotiating include: 

1. Location: The location of the land is a major factor that affects its price. Prime locations such as near major roads, schools, hospitals, and urban centers are usually priced higher than those in remote areas.
2. Size of the land: The size of the land is also a significant determinant of its price. Larger pieces of land usually cost more than smaller ones.
3. Land use: The intended use of the land can affect the price. Land that is zoned for commercial or industrial use can be more expensive than land zoned for residential use.
4. Land tenure: The type of land tenure can also impact the price. Land with a freehold title is generally more expensive than land with a leasehold title.
5. Market conditions: The current state of the real estate market can affect the price of land. When the demand for land is high, prices may go up, and when the demand is low, prices may go down.
6. Infrastructure: The availability of infrastructure such as water, electricity, and roads can also impact the price of land. Land in areas with good infrastructure tends to be more expensive.
7. Negotiation skills: Good negotiation skills can be crucial in getting a better price for land. It’s important to do research on the current market prices and be willing to walk away if the price is not favorable.

7. Transfer of ownership

After reaching an agreement on the price, the next step is to transfer ownership of the land. This involves: 

1. Payment of purchase price: The buyer is required to pay the agreed purchase price either in full or in installments as per the terms of the agreement. The payment is usually made to the seller’s advocate, who holds the funds in trust pending completion of the transfer process.
2. Stamp duty payment: The buyer is also required to pay stamp duty, which is a tax levied on the transfer of ownership of land. This is usually calculated as a percentage of the purchase price and is paid to the Kenya Revenue Authority (KRA).
3. Transfer preparation: After payment of the purchase price and stamp duty, the seller’s advocate prepares the transfer documents, including the transfer form, consent to transfer form, and certificate of clearance. These documents are then submitted to the relevant Land Registry for processing.
4. Approval and registration: The transfer documents are reviewed by the relevant authorities to ensure compliance with the law and the land registration process. If approved, the transfer documents are registered and the ownership of the land is transferred to the buyer.
5. Issuance of new title: After registration of the transfer documents, a new title is issued in the name of the buyer, indicating the change of ownership.

In conclusion, buying land in Kenya can be a rewarding investment, but it’s essential to follow the legal requirements and conduct thorough due diligence to avoid potential pitfalls. Engaging a reputable real estate agent and obtaining legal advice are crucial steps to ensure a smooth buying process.