Ownspace Realtors enlightment on Land purchase process in Kenya.

Land Purchase Process in Kenya

This process can be daunting. Especially so if you have to visit a government office, I’m sure you know that by now. But worry not, I got you. Below is the procedure in a nutshell;

The Procedure for Transferring a Title Deed in Kenya

The purchaser obtains a land rent clearance certificate. This is often at no cost, done at the office of the commissioner of land and takes not more than 20 days.

The seller then needs to apply, pay and obtain a rates clearance certificate from the county office in which the land is located. The certificate cost around Kshs 10,000.

Apply for a search on the title deed which takes not more than 3 working days at a cost of Kshs 500.

The seller then needs to apply for and obtain the consent to transfer from the National land commission. The document costs about Kshs 1,000 and takes not more than 2 weeks.

Valuation of the land by government valuer to ascertain the amount to be paid as stamp duty.

Paying the stamp duty, the amount indicated on the valuation report is then to be paid to the commissioner for Domestic taxes (KRA) and the payment receipt presented as proof.

The final step of the transfer is to lodge stamped transfer documents for registration at the local land office.

Required Documents

Duly filled Application for Official search Form RL 26

Proof of land ownership.

PIN certificate (copy)

Identity card (copy) for the applicant if Kenyan.

Duly filled booking form.

Consent to transfer land (copy)

Official land search (original)

Land rates clearance receipt (copy)

Land rent certificate (copy)

Transfer instrument (3 original + copy)

The Process in Detail

Step 1: Obtain Official land search

You Can Apply On-line

Log onto the e-citizen portal E-Citizen and sign in.

Click on Ministry of Land, Housing & Urban Development link and choose the land search option.

Enter the title number and fill the online land search form Kenya and submit.

Confirm the details and proceed to pay using the available payment method which can be a debit card, credit card, M-Pesa, or bank transfers. One is required to pay a fee of Ksh 500 for the search.

Once the payment is confirmed, the applicant can proceed to print the results, and if you choose not to, the information will always be available on the portal anytime you log in.

Step 2.Obtain Land Transfer Documents
You Can Use a Lawyer

Apply, pay and obtain rates clearance certificate from the County Government.

This is done by the seller’s lawyer through consulting the local county government lands office. The whole process can take five days at the cost of Ksh. 10,000. This certificate proves that there are no outstanding fees to be paid at the City County’s office. Lawyer’s fees are calculated according to the value of the land.

Upon payment of all outstanding Land Rates at the Local County Governments and upon an application and payment of the prescribed fees. The respective County Governments shall issue a Land Rates clearance certificate.

Apply and Obtain Land Rent Clearance Certificate from the Commissioner of Lands.

Upon payment of outstanding Land rent and on application, the commissioner of lands issues a Land rent clearance certificate. This certificate is proof that there are no outstanding fees to be paid to the County Government.

Apply and Obtain Consent to transfer from commissioner of Lands.

The consent to transfer leasehold land held by the government under the repealed Act is required to be obtained from the National Land Commission. Upon payment and issuance of Both Land rent certificate and Land rate certificate, an application is made in writing by the lawyer to the commissioner of lands and the prescribed form executed for consent to transfer the desired property. Upon payment of the prescribed amount, consent to transfer is issued. This process takes nine days at the cost of Ksh. 1,000.

File the transfer instrument at the Lands Office for assessment of stamp duty payable on the transfer.

The draft transfer is done by the buyer’s lawyer and the transfer instrument has to be approved by the seller’s counterpart before it’s filled at the land’s office to be assessed for Stamp Duty. After the lawyers approval the instrument is submitted for assessment of stamp duty at the Lands registry .The stamp duty is 4% of property value for urban lands and 2% for rural lands. The stamp duty amount to be paid is indicated when the application is filed, but it takes approximately 7 days to obtain the receipt of payment (obligated to pay with a banker’s cheque) from the bank. The payment is made directly at the Lands Office.

Step 3.Obtain Valuation for Stamp Duty

Receive inspection by land officer

Once the draft transfer has been filed at the land office, an inspector visits the site to verify the development and state of the property. Due to lack of transport, in practice, the inspector often has to be picked up in-person and driven to the site. There are no prior appointments made and the actual inspection may happen within one day or, in the worst case, one month. However, note that this time is not limited and in some cases entrepreneurs may wait months for a valuation. Once the evaluator has inspected the property, a report is compiled which the value is endorsed on the transfer.

Obtain valuation of the property by Government evaluator

The inspector visits the site to evaluate and verify the indicated purchase price of the property in order to ensure accurate tax payment. If the assessed value differs from the one indicated by the parties, an additional payment is requested.

Step 4.Stamp Duty Payment

Endorsement of value for Stamp Duty and assessment of Stamp Duty

Complete the Stamp Duty form including the purchase price. The stamp duty assessment officer will then assess the stamp duty payable and indicate the amount on the forms. This takes three days.

Payment of Stamp Duty

It is mandatory to pay the stamp duty with a banker’s cheque. The payment is made through commercial banks and the approved banks include the Kenya Commercial Bank and The National Bank of Kenya. Payment is made to the Commissioner of Domestic Taxes on behalf of the Commissioner of Lands. It takes four days for the Kenya Revenue Authority to confirm receipt of payment.

This Stamp Duty is payable online via the KRA itax portal

Submission of the documents for franking/obtaining franked documents.

After payment of stamp duty, the transfer documents are submitted for franking to confirm that any charges or taxes, such as the stamp duty on those documents have been paid.

Step 5.Land Registration

Pay registration fees

A payment of Ksh 500 is charged and one issued with a booking form to fill.

Lodge the completion documents with Lands Office for registration of the transfer.

The franked transfer documents are lodged for registration at the Lands Office. The seller’s lawyer obtains these documents which include; original certificate of Title, Rates Clearance Certificate, Land Rent Clearance Certificate and the consent transfer. This process takes 12 days.

Duly filled booking form

Consent to transfer land (copy)

Official land search (original)

Land rates clearance receipt (copy)

Land rent certificate (copy)

Transfer instrument (3 original + copy)

Identity card (copy)

PIN certificate (copy)

This process takes two weeks and Ksh. 5,000 is charged to obtain process a new title deed certificate.

After a successful registration you will receive the following document

An original title deed with the name of the buyer

Registered transfer forms