Buying or selling of land or property in Kenya involves more than just agreeing on a price and shaking hands. The legal process that transfers ownership from one party to another is known as conveyancing. It is where most mistakes happen, usually because a step was skipped, a document wasn’t properly verified, or a statutory requirement was overlooked. This article will briefly walk you through what the process typically involves, what it costs, and what to watch out for.
This article is intended to provide general information only and does not constitute legal advice. Every transaction is different, and you should consult an advocate about your specific circumstances.
What Is Conveyancing?
Conveyancing is the legal process through which title (ownership) of land or property transfers from a seller to a buyer. In Kenya, it is governed primarily by the Land Registration Act, 2012, the Land Act, 2012, the Law of Contract Act, the Stamp Duty Act, and, where relevant, the Land Control Act. Most registries now process transactions through the Ardhisasa platform, which has digitised land search, valuation, stamp duty payment, and registration in many counties.
Understand What You’re Buying: Types of Title
Before anything else, it matters what kind of interest is being transferred:
Freehold title-gives the owner an indefinite interest in the land, subject only to statutory obligations such as rates. This is the most complete form of ownership available.
Leasehold title grants the right to use land for a fixed period (commonly 99 years), after which the interest reverts unless the lease is renewed. Most urban and government-allocated land in Kenya is leasehold.
Sectional titles apply to units within a building for example apartments and offices registered individually under the Sectional Properties Act, 2020. If you’re buying an apartment, confirm the sectional title has actually been issued; many developments are still sold and occupied before formal sectioning is complete.
Each type carries different due diligence points, so confirm early which category your transaction falls into.
The Typical Stages of a Conveyancing Transaction
1. Due diligence and title search
A search should be conducted at the relevant Land Registry (or via Ardhisasa, where available) to confirm the registered owner, check for charges, cautions, restrictions, or other encumbrances, and verify the title is genuine. It is also prudent to physically visit the land, confirm boundaries against the registered survey plan or deed plan, and check for any occupants who may claim an interest (such as under adverse possession or a spousal claim).
2. Negotiation and drafting the sale agreement
Once due diligence is satisfactorily done, the parties negotiate price, payment schedule, and conditions, which are captured in a formal sale agreement. The Kenyan law requires contracts for the sale or disposition of an interest in land to be in writing and signed to be enforceable. An oral agreement, however clear, generally cannot be enforced. The agreement should address among other things the deposit amount, the completion date, actions to be taken if a party defaults, and who bears the risk if, for example, consent is delayed or refused.
3. Payment of deposit
A deposit commonly around 10%, though this is negotiable” is typically paid on execution of the sale agreement. It is common practice for this to be held by an advocate as a stakeholder pending completion, rather than paid directly to the seller, so that it can be refunded if the transaction fails through no fault of the buyer.
4. Valuation
A registered valuer (or government valuer) assesses the property’s value, which is used to compute stamp duty. Stamp duty is charged on whichever is higher: the declared purchase price or the official valuation so undervaluing a transaction to reduce duty does not work and can attract penalties.
5. Consent and clearance
Depending on the land’s classification and location, several consents and clearances may be required before registration:
Land Control Board (LCB) consent is mandatory for agricultural land under the Land Control Act, and typically the step that adds the most time to a transaction, since board sittings are periodic.
Land rates clearance from the relevant county government, confirming no outstanding rates.
Land rent clearance from the national government, for leasehold land, confirming ground rent is up to date.
Spousal consent where the property is matrimonial property, the Land Act and Matrimonial Property Act generally require the non-owning spouse’s consent to any disposition.
Consent of a lender if the property is charged/mortgaged, the chargee’s consent (and a discharge or undertaking) will be needed before or alongside transfer.
6. Payment of stamp duty
Stamp duty is paid to the Kenya Revenue Authority (via iTax/Ardhipay) before transfer documents can be lodged for registration. As at the time of writing, the applicable rates are 4% of the assessed value for property within gazetted urban areas and municipalities, and 2% for rural or agricultural land charged on whichever is higher between the sale price and the valuation. Transfers between spouses are generally exempt, and transfers by way of inheritance attract a reduced rate, but exemptions must be formally applied for rather than assumed. A separate Land Information Management System (LIMS) registration fee of around 0.1% of the value is also payable to the registry.
7. Registration of transfer
The final step is lodging the signed transfer instrument, together with proof of stamp duty payment and all consents/clearances, at the Land Registry so the buyer is recorded as the new owner. Legal ownership passes only upon registration and not upon signing the sale agreement, paying the price, or taking possession of the property.
What Conveyancing Typically Costs
Beyond the purchase price, buyers should budget for closing costs that commonly fall in the region of 8% of the property value, made up of:
– Stamp duty (2% or 4%, as above)
– Legal fees, which for conveyancing transactions are generally guided by the Advocates (Remuneration) Order, plus VAT
– Valuation fees
– Registration and LIMS charges
– Search, consent, and clearance fees
Exact figures depend on the property’s value, location, and complexity, so it’s worth requesting a written cost estimate before a transaction begins.
Off-Plan and Pre-Completion Purchases
Buying property still under construction (“off-plan”) carries additional risk: the title may not yet be sectioned, the developer’s approvals (physical planning, NEMA, county) should be verified, and payment is usually staged against construction milestones rather than paid upfront. It is advisable to confirm the developer’s track record and, where possible, have payments made into an escrow arrangement rather than directly to the developer.
Buying as a Kenyan in the Diaspora
Diaspora buyers face the same legal requirements as anyone else, but distance adds risk: due diligence and site visits are harder to do personally, and transactions are more exposed to fraud where a buyer cannot physically inspect documents or the land. A power of attorney is often used to allow an advocate or trusted representative to act locally, but this should be properly drafted, registered where required, and limited in scope to reduce risk of misuse.
Common Pitfalls to Avoid
Relying solely on a seller’s documents without an independent search. Documents can be forged, outdated, or simply wrong.
Paying the full purchase price before confirming a clean title. Structured payment tied to verified milestones offers more protection than paying upfront.
Ignoring boundary verification. A search confirms ownership; a survey/site visit confirms boundaries. Both matter.
Overlooking spousal consent requirements on matrimonial property.
Assuming an oral agreement is enforceable. It generally is not, for land transactions.
Underdeclaring the sale price to reduce stamp duty. Duty is assessed on the higher of price or valuation, and underdeclaration can trigger penalties.
Skipping Capital Gains Tax considerations. Sellers should be aware that a disposal of property is generally subject to Capital Gains Tax on the net gain, which is separate from the buyer’s stamp duty obligation.
Why Instruct an Advocate?
An advocate handling your conveyancing typically verifies title, drafts or reviews the sale agreement, holds funds safely as a stakeholder, coordinates the various consents and clearances, computes and confirms statutory costs, and ensures the transfer is correctly lodged and registered. Given the number of steps, authorities, and statutory deadlines involved, professional guidance is generally advisable for transactions of this value and complexity.
If you are considering to purchase or sell a property and would like guidance on the process, feel free to get in touch with our office to discuss your circumstances.