Can a Foreign Company Own Land in Kenya?

Yes, a foreign-owned company can buy and own land in Kenya but only on leasehold terms meaning the type of land and the process involved are governed by specific laws designed to regulate foreign ownership.

As such a company that is not wholly owned by Kenyan citizens is treated as a foreign person and may hold land only on leasehold for up to 99 years and NOT on freehold terms. Foreign (or partly foreign) companies are also restricted from owning

How Can a Foreign Company Own Land in Kenya?

The Constitution maintains a clear line between citizens and non-citizens when it comes to land ownership. Under Kenyan law a “person” can be an individual or a company. If the company is not 100% Kenyan-owned, it is treated as a foreign person and falls under the foreigner rules.

Therefore, for a foreign company, ownership is almost always through a leasehold title, not a freehold one.

That is why ownership structure matters for foreign investors want property in Kenya.

When is a Company Considered “Kenyan”?

For land ownership rules, a company is considered Kenyan only if it is entirely (100%) owned by Kenyan citizens. If even one share is owned by a foreigner or a foreign entity, the company is treated as foreign for the purpose of land ownership restrictions. That is why many investors use special structures (explained below).

“Leasehold” vs “Freehold”

Freehold; ownership of the land is outrightly forever (no fixed end date).

Leasehold; buyer can hold the land for a fixed time (for example, up to 99 years). After the lease ends, the land returns to the owner unless it is renewed. The buyer is essentially renting it from the lessor for a very long time. The lessor could be the government, a county council, or a private Kenyan citizen.

In Kenya, non-citizens (including foreign-owned companies) can only have leasehold and only up to 99 years. Anything longer than that is treated as a 99-year lease under law.

Understanding the Key: Types of Land in Kenya

The Kenyan Constitution divides all land into three categories:

1. Public Land: This is land owned by the government. It includes roads, parks, rivers, and government buildings. A foreign company cannot just buy this land.

2. Community Land: This land belongs to a specific community, like a tribe. It is managed for the benefit of that particular community. It is very difficult for an outsider, including a foreign company, to buy community land.

3. Private Land: This is land owned by an individual or a company. This is the type of land a foreign company would be interested in buying. Private land comes with a title deed, which is the official proof of ownership.

Can a Foreign-Owned Company Buy Any Kind of Land?

There are two quick rules to remember:

1. Leasehold only (max 99 years) for non-citizens (including companies with foreign shareholders).
2. Agricultural (farmland) is specially protected — the Land Control Act and related laws limit or block sale/transfer of agricultural land to non-citizens or to companies that are not wholly Kenyan-owned. This means foreign-owned companies generally cannot legally buy agricultural land.

Therefore, a foreign-owned company can only buy commercial, residential, or industrial properties on leasehold, but not freehold land and generally not agricultural land.

Common Ways Foreign Investors Legally Get Land in Kenya

Here are legal and common approaches used by foreign investors and their pros and cons.

1. Set up a Kenyan subsidiary (local company) and ensure it is fully Kenyan-owned

To be treated as a Kenyan company for land ownership, the company must be wholly owned by Kenyan citizens. This is often not practical for foreign investors who want control. If the subsidiary is not 100% Kenyan-owned, it will still be treated as foreign and limited to leasehold.

2. Use a Kenyan-registered company with a long lease (99 years)

A foreign parent can register a local company or a foreign company can lease land directly on a leasehold basis for up to 99 years. Leases are renewable; many investors accept long leases rather than freehold. This is the most common route for commercial developments and expatriate housing.

3. Joint venture with Kenyan partners

A joint venture where Kenyan citizens own the company (or majority or all shares) can buy land more freely. But governance, profit-sharing, and control must be negotiated carefully. Be transparent and do strong due diligence to avoid future disputes.

4. Long-term lease from government

In some cases, government land is leased to investors for development projects. Terms differ and require approvals. This route often needs negotiation with national or county authorities.

5. Operating as a Foreign Company

A company registered outside of Kenya must be “foreign-owned.” It must register as an external company in Kenya to do business there. This type of company is restricted to the 99-year leasehold we discussed earlier.

The Step-by-Step Process of Buying Land as a Foreign-Owned Company

1. Decide on structure of ownership: whether to buy through a Kenyan company, a subsidiary, or take a lease?
2. Check the title: confirm type (freehold or leasehold), encumbrances, boundaries, mortgage, caveats.
3. Identify and confirm land category: is it agricultural? If yes, extra rules apply and sale may be blocked.
4. Official Search: Go to the Ministry of Lands or the Ardhi Sasa online portal. Do an official search using the title deed number. This confirms the true owner and if there are any loans (charges) or legal disputes on the land.
5. Get Land Control Board consent (where required) — especially for agricultural land transfers.
6. Do due diligence — check chain of ownership, past disputes, local rights, and any pending court cases.
7. Use a Kenyan lawyer — register documents, verify registration at the Lands Registry, and ensure the lease is properly registered.
8. Register tax and company documents — KRA PIN, company registration, and any required approvals for foreign investors.
9. Sign the Sale Agreement: You and the seller sign a contract. You will usually pay a deposit at this stage.
10. Pay Stamp Duty: This is a tax paid to the government for the transfer of property. The rate for companies is 4% of the value of the land.
11. Transfer and Registration: Your lawyer submits all documents to the Lands Registry. The land is officially transferred into your company’s name, and a new title deed (leasehold) is issued.

Things to Watch out for

1. Historical land disputes: Some foreign-owned estates (especially large plantations) have been targets of community land claims and occupations. These situations can be politically charged and messy. Recent news shows disputes between communities and foreign-owned tea estates. This is a real risk to investors in large agricultural holdings or where historical grievances exist.
2. Lease expiry and renewal: A 99-year lease is long, but it ends. Renewal terms are important. Make sure contracts include clear renewal conditions and protection where possible.
3. Changing policy: Land and investment laws can evolve. Always check the most recent laws, county regulations, and any political developments that might affect land rights.
4. Agricultural Land: There is an old law called the Land Control Act that restricts foreign ownership of agricultural land. While the new Constitution is the supreme law, this old rule can still cause delays. Getting approval for such purchases can be harder.
5. Land Near Borders: Foreign companies cannot own land near international borders or other sensitive areas for security reasons.
6. Fraud: Land fraud is a real problem in Kenya. Never buy land based on a copy of a title deed alone. Always do an official search. Beware of agents asking for huge upfront payments.
7. Community Land: As mentioned, trying to buy community land is very complex and often not advisable for a foreign entity.

Frequently Asked Questions