PROCESS OF BUYING LAND IN KENYA
Conduct a site visit
Identify the piece of land that you wish to purchase and ensure that the beacons of the land are clearly marked. Like part of your own personal land survey. However, keep in mind that in ancestral land the
re may be no beacons. The beacons give a clearer vision of the shape and size of the land and its actual boundaries.
Perform an official search
Your lawyer then performs a land search in Kenya at the District Lands Office or the Ministry of Lands (Ardhi House) and National Lands Commission. This depends on whether the Title Deed of the subject land is registered under the Land Registration Act (LRA) or Registration of Titles Act (RTA) respectively. If the LRA, the search can be only be done at the District Office and if it’s RTA, it can be done at the District Office or at Ardhi House. To perform the Official Search, you will need a copy of the title deed of the land and you must fill the search application form and attach the title. After verification of the land and it’s clear, your lawyer can proceed and prepare a land sale agreement with the seller’s lawyer. The deposit can then be paid to the Vendor.
Preparation of the documents
The vendor must prepare all the completion documents to ensure a proper transfer. The Completion documents will include:
a. Original Title in the name of the Vendor
b. Duly executed transfer forms in triplicate (must be sealed if a company is selling)
c. 3 Passport Photos of the Vendor if it’s an individual and if a company, then 3 photos each of 2 directors of the company
d. Copy of Pin Number of the Vendor
e. Copy of National ID of the Vendor and if a company copies of National IDs for 2 directors who’ll sign the transfer forms.
f. Copy of the registration Certificate if it’s a company.
g. PIN Certificate of Company
h. Rates Clearance Certificate (In Case the tenancy of the land is leasehold)
i. Rent Clearance Certificate (In Case the tenancy of the land is leasehold)
Payment of Stamp duty
The draft transfer documents should be filed at Lands Office for assessment of stamp duty payable on the transfer. Other than the aforementioned documents, the buyer must attach his copy of ID, passport photos and copy of PIN. If the buyer is a registered company, then the copies of IDs, passport photos and personal PIN of 2 directors must be attached. In addition the PIN Certificate of the Company. The government valuer conducts a site visit to verify the development and state of the property. The stamp duty are between 2% or 4% of the Value of the land depending on whether the land is within or outside the Local Municipality.
Exchange of documents
When the registration is done with issuance of a new Title deed (for freehold tenancy) or Certificate of Lease (Leasehold tenancy). The buyer’s lawyer or the buyer then collects the Title Deed at the Lands Office. Your lawyer should confirm that the documents are authentic and must certify the documents before presentation to the relevant Lands Registration Office then remaining balance is paid only at the exchange of the Completion documents.