Find prime real estate properties in Kenya

Absolutely! Kenya welcomes all foreign investors.

Freehold ownership provides permanent and absolute control over the property, while leasehold ownership grants the right to use the property for a specific period, subject to the terms of the lease agreement. Freehold ownership is only available to Kenyan citizens. Foreigners can own land in Kenya on a leasehold basis for up to 99 years, which is renewable.

If you rent out your property, you will be subject to paying a rental income tax of 7.5% monthly on the gross income generated. This is not to be confused with property tax; this is an income tax.

Buying a property, especially an apartment, in Kenya involves the following steps; Initiate the process by engaging with a reputable real estate agent to help you find a property that matches your preferences and requirements. Once you’ve selected a property, your real estate agent will connect you with the property developers/owner. The developers will then prepare an offer letter that outlines the terms and conditions of the property purchase. The offer letter will be accompanied by necessary documents such as the title deed, company registration form, property search, and NEMA approvals, among others. The offer letter is valid for 7 days. You have seven days to conduct due diligence on the property, which involves reviewing the documents and ensuring all legal aspects are in order. After conducting due diligence, you’ll need to sign the offer letter and make a required deposit, typically ranging from 20% to 30% of the property’s total value. After making the deposit, you can propose a payment schedule that suits your financial capabilities, as long as it aligns with the project completion period. Payment schedules can be on a monthly, quarterly, or every six months basis. The developers will then prepare a legally binding sale agreement for the property purchase. Sign and send it back. Once the property is completed and you have completed the payment, the unit will be handed over to you. As a property owner, you will receive a sectional title that serves as proof of ownership of your specific unit and shared ownership of common amenities in apartment complexes or gated communities.

Closing costs in a property purchase in Kenya typically include: Standard Legal Fees: These are legal charges, usually around 1% of the property’s value, for the legal work involved in the property transfer process. Stamp Duty Fees: These fees range from 2% to 4% of the property’s value, depending on the property’s location (urban or rural), and are paid to the government for property registration. Additional Charges: There are other charges such as service charges for six months, transfer and registration of title, formation of a management company, and installation of electric and water meters. In total, the closing costs typically amount to approximately 6% of the property’s value. It’s essential to factor in these costs when budgeting for a property purchase in Kenya.

Upon purchase, you will receive a sectional title under the Sectional Properties Act of 2015, confirming ownership of your specific unit and shared ownership of communal areas like swimming pools