IOC Law / Africa Intelligence / Kenya

Property and Business Premises in Kenya

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Article 65 of the Constitution limits non-citizens and companies not wholly owned by Kenyan citizens to leasehold land for no more than 99 years. The constitutional rule is available in the Constitution of Kenya. Agricultural or controlled land, public land, coastal interests and changes of use can require further consents.

Title diligence should verify the owner, tenure, term, survey, boundaries, encumbrances, litigation, land rent, rates, access and occupation. Conduct a physical inspection and reconcile it with the register and survey. Confirm that the landlord can grant the entire proposed term.

Investigate zoning, permitted use, building and occupation approvals, environmental status, utilities, fire and county permissions. A warehouse, factory, clinic, school or retail site may require different approvals. Make a material acquisition or lease conditional on title and critical regulatory findings.

Leases should cover term, renewal, rent, service charges, taxes, repairs, insurance, alterations, signage, security, utilities, assignment, subletting, change of control, group transfers, reinstatement and break rights. Align rent commencement with access and fit-out where possible.

For development, sequence NEMA, planning, building, utility and contractor requirements before irreversible spending. Buying versus leasing should be compared using the full lifecycle cost, capital needs, operational flexibility and planned exit.