There are different ways of owning land in Kenya as per our constitution and our land laws. These forms vary, and they include freehold land ownership, leasehold land ownership, and customary law or communal land ownership. These forms vary in their rights and in the different ways someone can use that land. This guide covers the various forms of land ownership in Kenya to help you find what works best for you.
What are the Different Forms of Land Ownership in Kenya?
It is important to know that some of the forms of land ownership in Kenya have limitations under the Kenyan Land Laws. Let’s review what they all entail:
Freehold Land Ownership
Freehold land ownership exists mainly in urban areas and in commercial land parcels. In this land ownership, the appropriator of the said land owns it in totality and without any limits. As such, this type of land ownership hands turns out to be quite expensive as one owns the land outrightly, and one can do whatever they want with their land. They can build on it, they can use it for commercial activities, and they can also use it to farm so long as whatever they do is legal under the Kenyan constitution.
Leasehold Land Ownership
In lease land ownership, the proprietor of the said land does not own it totally but rather owns it for a certain period of time, e.g., 99 years, as the case may be. When the lease ends, there are two options. The first is for the land ownership to revert to the original owner, which can be the government or another individual. The second is for the lessee to renew their lease agreement if the original land owner provides this option per their contract. Failure to renew automatically means that the land reverts to its original owner. Besides the limitations in ownership periods, there are also limitations when it comes to the use of the land, and one cannot enjoy all the rights available to freehold land users.
Cultural or Communal Land Ownership
There is a third form of land ownership in Kenya under our Land Laws, which is cultural or communal land ownership. This is where the land is owned by the community or by a respective community and is allocated to different families. Under this approach, different land parcels are allocated to different families to use or farm on, depending on the economic activities in the region.
This type of land ownership has many disadvantages, as there are no respective title deeds for each parcel. As such, there are usually many conflicts and disputes with regard to the use of this type of land. What’s more, people cannot use these allotted plots to secure commercial loans from banks as they lack the necessary title deeds to use as security. Furthermore, they also cannot develop their plots, such as erecting permanent buildings for commercial use on these plots, as the land does not belong to them.
This land also tends to be of a lower value due to these disadvantages as opposed to land in a similar area and of a similar size which has a legal title deed. The owners of such plots also cannot sell these blocks as they lack the necessary documentation, herein being the title deed, which means that they cannot profit by selling these blocks.
Overall, the use of such land is limited, and those who use such plots are locked out of many opportunities. There are, however, various Laws that are being designed to streamline these forms of land ownership.
What Land Ownership is Right for You?
It is, hence, clear from the above that you should engage experienced advocates before purchasing land in Kenya. These experts will help you review the benefits and disadvantages of each form of land ownership, thereby helping you (the discerning purchaser) avoid the pitfalls of some of these types of land ownership.
Legal experts can help you navigate the forms of land ownership in Kenya and avoid conflicts or disputes that are commonplace with some ownership types. Some of these cases end up in the Kenyan courts and go on for so many years that they tie the landowners up in never-ending legal battles.
What’s more, such legal help will help you get a land parcel that is suitable and fit for its intended use so that you can embark on pursuing your personal or business goals unperturbed by legal woes.
Need Help Navigating the Forms of Land Ownership in Kenya?
Should you get that freehold plot, or should you bank on a leasehold title? If such questions about forms of land ownership in Kenya are on your mind, let our legal experts guide you on the best decision that also protects you legally. Book a consultation using the form below, and our experts will get in touch with you.