Most of the real estate investments made in Kenya are generating substantial amounts of returns for investors, especially in the countryside in the areas around the national wildlife parks.

For a foreign investor interested in buying rural property for investment, especially properties located in safari/nature areas, you should be aware of the purchase procedure to ensure that you are not only making sound investments but also ensuring compliance. legal requirements and procedures. So what are these steps?

1. Property search

There are several ways to search for a suitable rural property to invest in, such as using web portals, real estate agents, word of mouth, and newspaper listings.

  • Real estate agents provide the most ideal means of searching for rural properties because they offer additional services such as property appraisals, search and comparison of different available rural properties, and can advise you on viable investment opportunities.

  • To invest in rustic properties located in natural spaces, agents do not have the usual 5.5% commission. Instead, agent fees for this type of property are determined by the size, type, and cost of the property.

  • Real estate agents arrange with homeowners to find viable buyers who can purchase the property for a specified amount of money. The agent then sets an additional amount on top of the specified amount to cover your fee.

  1. For example, for a ΒΌ acre piece of land near a national park, the owner may ask for 3.5 million Ksh, but the agent can earn an additional amount of 500,000 Ksh as an agent fee, so the property is will sell at 4 million Ksh.

  2. This type of agent fee is negotiable and often includes search and display fees.

2. Check the state of the land

  • Make sure that you, as a non-citizen or business with non-citizen shareholders, purchase property on a lease basis, as such individuals are prohibited by law from owning freehold property.

  • The law allows you to own a rental property for a period not to exceed 99 years.

  • Also, make sure the property is not located on agricultural land, as the law prohibits foreigners from acquiring such land under the provisions of the Land Control Act, SEC 24.

3. Hire a lawyer: carry out the required search, sale and transfer of properties

After finding and verifying the condition of the property, with the help of your attorney, a preliminary conditional agreement is prepared and signed between the two parties.

  • Make a deposit of 10-30% of the payment.

  • If a lender is financing part of the property, they will have to make payments for the part that is not financed, while the lender’s attorney must ensure that the amount of the financed part is secured.

  • Once the deposit amounts are made and a stamp duty of Ksh20 is obtained for the preliminary agreement, your lawyer must prepare for the transfer of the property by obtaining the necessary fees and land rent settlement certificates. which cost Ksh7,500 and consent transfer from the nearest Lands office.

  • Then must follow the inspection and valuation of the property by an inspector from the Ministry of Lands.

  • Then your attorney should go ahead and apply for registration of the transfer of ownership.

  • Successful transfer of ownership is a signal for you to make the rest of the payment, and 30 days later, taxes and legal fees are due.

4. Authorization to Develop the Property

If you intend to develop property in the nature/safari area, it is important that you obtain permissions from relevant bodies such as NEMA, Kenya Wildlife Service and local county council etc. to ensure that development does not compromise existing wildlife and habitat.

5. Additional charges

Foreign investors are charged 30% of gross rental income and 1% annual property tax.