3 min read452 words
Author: Gallant Law & Associates · Published: October 2026 · Jurisdiction: Kenya
Legal context: Constitution of Kenya, 2010, Article 65 · Land Control Act, Cap 302
A foreign investor can own property in Kenya, but only on leasehold terms of up to 99 years. Freehold ownership is reserved for Kenyan citizens.
The 99-year leasehold rule
Article 65 of the Constitution provides that a person who is not a Kenyan citizen may hold land on leasehold tenure only, for a term not exceeding 99 years. Any instrument that purports to grant a non-citizen a longer term, or a freehold interest, is constitutionally read down to a 99-year lease with a nominal rent, the ownership isn't voided, simply capped. In practice, a 99-year lease carries nearly all the substantive rights of ownership i.e. the right to sell, mortgage, rent out and pass the property on within that term.
When a company is treated as foreign
The rule that catches investors off guard is how "foreign" is defined for a company. A body corporate is treated as a citizen for landholding purposes only where it is wholly owned by Kenyan citizens. A company with even one foreign shareholder is a foreign person for this purpose, regardless of what percentage they hold. A trust structure cannot be used to work around it since beneficial ownership must itself be Kenyan for the exemption to apply. Any joint venture, holding structure or cap table that includes a non-Kenyan shareholder should assume the leasehold cap applies to land the company holds.
Agricultural land restrictions
Agricultural land is also restricted. Under the Land Control Act, sales or leases of agricultural land situated outside municipalities, townships or market areas are "controlled transactions" and require the consent of the relevant Land Control Board. Consent to a non-citizen is rarely granted. Investors interested in agricultural or large rural land typically need a different structure entirely, rather than a standard purchase or lease. This is a genuine risk to plan around at the structuring stage, not a technicality to discover during due diligence on a target company or joint venture partner.
Commercial and residential property
For commercial and residential property i.e. offices, warehouses, retail premises, staff housing, a leasehold structure is the standard, well-understood route, and the great majority of Kenya's commercial property market operates this way. The practical work is in the due diligence which includes confirming the title's history, the lease's remaining term, any conversion from a pre-2010 freehold, and whether the seller's own corporate structure affects what they're actually entitled to transfer.
Structure and due diligence before funds move
Gallant Law & Associates advises international investors on structuring land and property acquisitions, including due diligence on title and ownership structure, before funds are committed.
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This article is general legal information, not legal advice, and does not create a lawyer–client relationship.