Can Foreigners Buy Property in Kenya?
Discover the rules governing property ownership by foreigners in Kenya. This guide explains current legislative restrictions, constitutional provisions, and practical considerations for non‑citizens seeking to invest in Kenyan real estate
Circumventing the 99-year restriction
Savvy investors often explore acquiring land through a locally incorporated company or a trust. However, the law is designed to prevent non-citizens from using these structures to circumvent the 99-year limit.
For the purpose of land ownership, article 65(3) of the Constitution is provides that:
(a)a body corporate shall be regarded as a citizen only if the body corporate is wholly owned by one or more citizens; and
Thus, a private company with even one foreign shareholder or where even 1% of the shares are foreign-owned is legally classified as a non-citizen entity. This means the company's land ownership is automatically restricted to the 99-year leasehold, just as it would be for a foreign individual.
Similarly, for a trust to be considered a citizen holding:
(b)property held in trust shall be regarded as being held by a citizen only if all of the beneficial interest of the trust is held by persons who are citizens.
If the beneficial owner Is a non-citizen, the 99-year lease restriction applies.
Freehold land
Agricultural land in controlled areas (without presidential exemption)
The Issue of Lease Renewal
This is a critical area where many advisory articles fall short. While you have the right to apply for a renewal, keep in mind that under Malindi Law Society vs the Attorney General & Another (2021) eKLR, the Court held:
The overarching theme in this petition was that unlike Kenyan citizens, foreigners don’t have pre-emptive rights over leasehold lands held by them. Such limitation on their rights is constitutional and within the legislative prerogative of parliament. The National Land Commission (NLC) assesses renewal applications based on several factors, including whether the land is required for a public purpose by the national or county government. If the land is deemed necessary for public use, the renewal will be declined, and the land reverts to the government.
Therefore, for foreign investors, securing a leasehold is a fixed-term agreement, and the renewal is subject to government discretion and public policy needs, not a guarantee.
Agricultural Land
The general rule is that non-citizens and foreign-owned private companies are barred from acquiring agricultural land without special permission.
Under s24 of the Land Control Act, non-citizens can circumvent this restriction by owning shares in a public company that owns agricultural land. This requires foreigners to incorporate public companies where they are shareholders to gain capacity to own agricultural land.
A rare exception is provided where a non-citizen obtains an explicit Presidential Exemption, which is typically reserved for projects deemed to be of national or strategic importance (e.g., large-scale infrastructure or industrial agriculture).
What foreigners can and cannot own
Freehold v Leasehold
Under article 65 of the Constitution:
(1) A person who is not a citizen may hold land on the basis of leasehold tenure only, and any such lease, however granted, shall not exceed ninety-nine years.
This rule is automatic. If a foreigner buys a property that currently holds a freehold title, the law automatically converts that interest to a 99-year leasehold from the effective date of the Constitution (August 27, 2010). The law is more concerned with the owner's citizenship status than the paper title they hold.
Leasehold land (urban or rural, up to 99 years)
Sectional title units (apartments/condos) on leasehold land
Commercial properties on leasehold
Permitted
Prohibited/Restricted