Buying land in Kenya is a process that consists of 11 steps which I will state and explain in this article.
Introduction
First of all land is a very good investment that everyone of you should consider putting your money in. The following are some of the advantages of buying land in Kenya.
Advantages of buying land in Kenya
- Land value appreciate most of the time in Kenya. You should consider buying land in Kenya.
- Land can be developed- When you have a land, you can decide to develop it.
- 80% of land in Kenya is good for agriculture.
- Land can be used as a collateral to secure loan. In short buying land in Kenya is a good investment.
Factors that determine the price of Land in Kenya
- Size of the land- The bigger the land, the more costly the land may be.
- Lactation of the land- The location of the land also determines its price. If the land is located in a prime area, its value will also rise.
- Distance from major road, railway line, shopping center, junction, river and social amenities.
- Availability of electricity, water, recreational facilities and other facilities.
According to DCI Kenya, check the following before buying land in Kenya.
Things you should check before buying land in Kenya.
- That the land does exist. You can do this by looking at following our third tip in the process of buying a land listed below.
- Be aware of whats planted in the Land. This is to ensure that there is no illegal plants in the land.
- That the person selling the land is the owner. You can do this by checking the original title deed as stated in the first step of buying a land on this article.
- That the land does not have any incumbency or attached to a bank. Ensure that the land has not been used as a collateral to secure a loan from bank, sacco, micro-finance, or other financial institution offering loan.
- That there is no dispute whatsoever. Ensure there is no active court case going on in courts or tribunals.
- The potential buyer must carry out due diligence before executing a sale agreement and before parting with any monies towards the purchase.
- The buyer can engage a Lawyer to do the transaction on behalf of the two parties incase of a dispute
- When you feel that you have a fake document when buying land in Kenya, first report to the nearest police station and be advised where to take the documents for examination or write to the Director of Directorate of criminal investigations and attach those documents.
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The process of buying land in Kenya
If you are buying land in Kenya as an individual or a group, please follow the following steps:
- Ask to see the title deed or copy of title deed. This will help you verify if you are buying the land from the real owner. On the original title deed, check if the name match with the one you are intending to buy from. After looking at the title deed, take a photocopy and with the copy, do a search at the ministry of lands to confirm who the real owners are or if the title has any Caveat on it. The search will cost you kshs 520 (Rates are subject to change).
- Do a search with the local authorities (county government) to check of any unpaid land rates. This check can be done at the county offices department in charge of lands. If any, agree with the seller on who will settle the debt. NB: land can’t be transferred if there are unpaid land rates.
- Go to the ministry of lands and buy 2 maps, one showing the exact measurements of the piece u are buying (called mutation) and the other showing the neighboring lands. Each costs Ksh 350.
- With your 2 maps and a surveyor (you can even do it yourself but it is advised that you seek the assistance of a surveyor) , visit the land you are buying and verify the details on the map. Check out all the beacons.
- Sit down with your seller and bargain the price. Write down an agreement once you reach an agreement on the price. The agreement can be done before a lawyer or you may decide to do it yourself (it is good if it’s done before a judge to avoid any legal battles in the future, but you can decide to avoid the cost of hiring a lawyer). It’s not a must to be written by a lawyer. According to LSK, if the value of the land is below 1 million, you pay the lawyer 3k. If above 1m, you pay 8k for the agreement. The spouse MUST BE present! Ask me in the comment section why the spouse must be present.
- Pay some amounts or as per your agreement. Don’t pay everything, even if you have the money at hand, I will inform you when to complete the payment. Yo can begin developing the land at this point. You can fence it, start bringing in building materials, or start your agriculture.
- Book a meeting with the Lands Control Board(LCB). They meet once a month. It will cost you kshs 1,000. But there is a special LCB meeting which you can book at 5k. LCB will issue consent for the land to be sold.
- Pay the remaining balance after getting consent from LCB. Without this consent, DO NOT pay the remaining amount.
- With the consent from LCB, a recent search(not more than 6 months), clearance form from County land rates, your 2 maps you bought from the Ministry of Lands in process 3 above, the agreement, KRA PIN, 2 Passports and copy of the title deed, go to the ministry of lands to change ownership. Cost kshs 5000 (Rates are subject to change).
- At this stage, you no longer need the seller, but you should be in regular contacts with them. Now go and pay stamp duty i.e. according to the value of the land. 4% of sale value in municipalities 2% in reserves
- Now you have completed the process of buying land in Kenya. But before celebrating, go to the ministry and do a search to confirm if it really reads your name.
Conclusion
The process of buying land in Kenya is a long one that cannot take less than one month. Avoid those colourful social media adverts promising to sell you land at a very cheap price and simplified process that can take 24 hours.
Good
Everything is very open with a really clear explanation of the issues. It was really informative. Your website is very useful. Many thanks for sharing!
Very interesting lesson.Thank you very much for educating me.