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

For a foreign investor interested in purchasing rural investment properties, especially properties located in safari/nature areas, you should be aware of the purchase procedure to ensure that you not only make sound investments but also ensure that you are compliant. 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, such as using web portals, estate agents, word of mouth and newspaper listings.

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

• To invest in rustic properties located in natural areas, 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 work with property owners to find viable buyers who can purchase the property for a specific 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 ¼ acre piece of land near a national park, the owner may ask for Ksh 3.5 million, but the agent may earn an additional Ksh 500,000 as agent fee, so the property is It will sell for 4 million Ksh.

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

2. Check the state of the land

• As a non-citizen or a company with non-citizen shareholders, please ensure that you purchase rental property, as such persons 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 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: perform the required search, sale and transfer of property

After finding and verifying the status of the property, with the help of your attorney, a conditional preliminary 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 need to make payments for the part that is not financed, while the lender’s attorney must make sure to secure the amount of the financed part.

• Once the deposit amounts are made and a stamp duty of Ksh20 is obtained for the preliminary agreement, your solicitor should 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 nearest Lands office.

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

• Your attorney should then go ahead and request the record of the transfer of ownership.

• The successful transfer of the property is a signal for you to make the rest of the payment and, 30 days later, you must pay the taxes and legal fees.

4. Authorization to Develop Property

If you intend to develop the property in the wilderness/safari area, it is important that you obtain permits from the 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.