If you’re a landowner or an investor in Kenya considering changing your land ownership from absolute ownership to a leasehold or land to lease in Kenya, you’ve come to the right place.
Let’s look at why you might want to do it, and what to watch out for. Remember, if you need expert help, Chepchieng and Company Advocates is a reliable law firm in Kenya that can assist with all your land queries and issues.
Understanding Freehold vs Leasehold in Kenya
First off, let’s clarify what these terms mean.
Freehold land means you own the land forever, with no time limit.
Leasehold land, on the other hand, means you own the land for a set period, usually up to 99 years, and you pay rent to the government or owner.
In Kenya, leasehold is common in cities, while freehold is more typical in rural areas.
Converting land from freehold to leasehold in Kenya can be beneficial for investors or when required by law.
For example, non-citizens can’t hold freehold land, so conversion happens automatically.
Freehold vs leasehold Kenya affects how you use and sell the land. Leasehold might limit some changes, but it often comes with lower upfront costs.
Why Convert Freehold to Leasehold?
You might wonder why anyone would switch from owning land forever to leasing land in Kenya.
There are good reasons. For non-citizens, it’s often required by law.
The Constitution of Kenya, Article 65, states that foreigners can only hold land for lease in Kenya for up to 99 years. If a foreigner owns freehold land, it must be converted to leasehold.
For Kenyan citizens, the new Land Amendment Bill 2024 makes conversion common in urban areas.
This bill turns many freehold properties into 99-year leases with an annual levy. It’s aimed at better land management and revenue collection.
If your land is near a city, converting it to a leasehold in Kenya could make it easier to develop or sell.
Investors prefer to lease land in Kenya because it enables the use of structured agreements, such as a land lease agreement.
For example, you could set up a land lease to an ownership arrangement, where someone pays over time.
Statistics show over 15,000 properties nationwide face lease expiry in 2026, pushing more people toward land to lease in Kenya. As a landowner, this conversion can protect your investment in changing times.
If you’re considering leasing land in Kenya, consider how it aligns with your goals.
The Legal Framework for Conversion Into Land to Lease in Kenya
Kenya’s laws guide this process. The Land Act 2012 and the Land Registration Act 2012 set the rules for land ownership.
For non-citizens, the Land Regulations 2017 require the conversion of freehold or long leases to 99-year leases in Kenya within five years.
The National Land Commission (NLC) handles most conversions. Under the Land Amendment Act 2024, urban freeholds in Kenya automatically convert to land to lease in some instances, but you need to regularize the title.
For voluntary conversions by citizens, it’s possible for non-public land not in strategic areas.
Women face challenges here – 2022 data show that 75% of women don’t own agricultural land, and only 10% of titles awarded from 2013 to 2017 went to women. If you’re a female landowner, converting your land to a leasehold in Kenya may offer more security through formal leases.
Types of land leases in Kenya include 99-year terms for residential or commercial use. A land lease agreement format in Kenya is standard, often a document outlining terms, rent, and duration.
For help, contact professionals like Chepchieng and Company Advocates. They specialize in land matters and can guide you through the legal aspects of leasing land in Kenya.
How to Convert Land from Absolute Ownership (Freehold) to Land for Lease (Leasehold) in Kenya
Let’s get to the how-to part. Converting freehold land to lease in Kenya involves several steps. I’ll explain them clearly.
Step 1: Check Your Eligibility
Confirm if your land qualifies. For foreigners, it’s mandatory. For citizens, check if it’s in an urban area under the 2024 amendments. Do a land search on the Ardhi Sasa platform for KSh 550 to verify your freehold title.
Step 2: Get Notifications and Apply
The NLC might notify you if conversion is required. If not, apply for the NLC or a county government position. Use forms like LA22 or LA23 for related processes. Include your ID, title deed, and proof of ownership.
Step 3: Obtain Approvals
Engage a physical planner for a brief. Obtain county approvals, such as development permission (PPA2). For land to be leased in Kenya, public participation may be required, such as posting notices in newspapers.
4. Surrender the Title
Hand over your original freehold title to the NLC. They review it within 90 days.
5. Pay Fees and Valuations
Costs include application fees (approximately KSh 10,000), stamp duty (ranging from 2% to 4% of the value), and valuation fees (KSh 15,000 to KSh 50,000). The total can be 2-5% of the land value.
6. Receive New Lease
The NLC issues a new 99-year lease certificate. Register it on Ardhi Sasa.
This process takes 6-12 months. For land to lease in Kenya, particularly in places like Nairobi, expect delays due to the high volume – over 10,000 properties in Nairobi are at risk in 2026.
If you’re looking for land to lease in Kenya, like in Kirinyaga County or Mombasa, the steps are similar. A land lease agreement in Kenya is key to formalizing it.
Costs Involved in Conversion
Money matters are essential. Converting land to lease in Kenya isn’t free. Here’s a breakdown:
– Application and processing: KSh 5,000–10,000
This equals approximately $39–$78 USD.
- Valuation and survey: Up to KSh 50,000
This equals approximately $388 USD.
– Stamp duty: 2% for rural, 4% for urban.
– Annual rent: Based on land value, often 0.1-1%.
In 2026, with the implementation of the Land Amendment Act, an annual levy was added to the costs of leasing urban land in Kenya. Statistics show land prices in Nairobi rose 8.2% in 2025, affecting valuations.
For investors, these costs are worthwhile for the flexibility of leasing land in Kenya. Think of it as investing in a land lease agreement that can generate income, like leasing land to a solar farm.
Chepchieng and Company Advocates can help estimate costs for your specific case. They’re experts in land lease agreements in Kenya.
Challenges You Might Face When Converting Freehold Land into Land to Lease
Converting freehold land to lease in Kenya isn’t always smooth. Here are the most common issues people run into, based on recent experiences and reports up to 2026.
Bureaucracy and Delays from Multiple Offices
You often have to visit several government offices. Similar to the National Land Commission (NLC), county lands offices, physical planning departments, and occasionally the Ministry of Lands.
Each step requires approval, and paperwork can be bounced between them. This leads to long waits, sometimes months longer than expected. In busy areas like Nairobi, the high volume of applications slows everything down.
Missing or Incomplete Documents
Suppose your freehold title has any issues, such as an unclear ownership history, boundary disputes, or missing supporting documents; your application for land to lease in Kenya may be rejected outright.
Many older rural freehold titles lack proper surveys or have outdated records. Without a clean title, the entire process stops until you rectify the issue, which adds extra time and cost.
High Volume of Cases in 2026
2026 is a busy year for land matters in Kenya. Thousands of leasehold titles are expiring or need renewal, especially in coastal areas.
For example, reports show significant lease expiries in Mombasa and other regions, putting pressure on the NLC and county offices.
This overload means longer processing times for anyone converting land to lease in Kenya. In Nairobi, thousands of properties are affected by ongoing reforms, adding to the queue.
Extra Hurdles for Foreigners
If you’re not a Kenyan citizen, the law is strict: non-citizens can’t hold freehold land at all (per Article 65 of the Constitution). You must convert land to lease in Kenya (usually for a term of 99 years).
There’s no automatic approval; you often need to demonstrate that your ownership benefits Kenya, such as through investment or development plans. The NLC reviews these carefully, and approvals can take longer or get denied if the case isn’t strong.
Risk of Corruption or Unofficial Payments
Unfortunately, some officials may request additional “facilitation” fees to expedite the process. This happens more in high-volume offices. It’s illegal, but it still occurs and can add unexpected costs.
Other Practical Issues
Women landowners sometimes face extra challenges. Joint ownership is common in families, but many titles are in men’s names only.
Recent stats show low female title ownership, so converting to land to lease in Kenya requires clear agreements to protect everyone’s rights.
The Land Amendment Act 2024 has created uncertainty in some urban areas, with mixed reactions about mandatory conversions.
Benefits of Converting Freehold to Leasehold
Compliance for Non-Citizens
Non-citizens cannot hold freehold land under Article 65 of the land ownership law in Kenya.
Converting freehold to leasehold in Kenya makes the title legal, allowing non-citizens to own and use the land through a 99-year leasehold.
This avoids automatic conversion issues and ensures full compliance with Kenya’s land tenure rules for non-citizens.
Access to Prime Urban and Development Areas
Land to lease is more common in cities and high-demand zones where freehold is limited.
Freehold to leasehold conversion in Kenya opens up opportunities for commercial, residential, or mixed-use projects that are easier to approve and develop in urban settings.
Lower Initial Costs and Easier Entry for Investors
Land to lease in Kenya often has a lower upfront purchase price compared to freehold. For investors in Kenya considering land ownership conversion, this means more affordable access to valuable land, especially when planning to sell units to foreigners who can only hold leasehold interests.
Standardization and Modernized Records
The process updates your title through systems like Ardhisasa land conversion, making records digital, searchable, and more secure. This enhances marketability and can facilitate smoother financing or sales.
Flexibility for Development and Sales
Voluntary land conversion in Kenya (for citizens) supports changes like the change of user freehold to land to lease, making it easier to develop high-density projects or attract international buyers.
Implications of Converting Freehold to Leasehold
Ongoing Annual Ground Rent Payments
You become a lessee and must pay annual rent to the government (the lessor). This adds recurring costs that freehold owners avoid, and rates can vary or increase over time.
Time-Limited Ownership
Ownership shifts from permanent to a fixed-term leasehold, usually a 99-year lease in Kenya.
As years pass, the remaining lease term shortens, which may affect the long-term value or resale potential of the property compared to a freehold property.
Renewal Uncertainty
At the end of the lease, renewal is possible, but it depends on government approval, payment of fees, and compliance with the conditions. Kenyan citizens have stronger renewal rights, but non-citizens face more restrictions under non-citizens’ land tenure in Kenya.
Government Oversight and Conditions
Land to lease in Kenya comes with lease agreements, which include rules governing land use, development, and maintenance. The government retains a reversionary interest, meaning it retains ultimate control if the conditions are breached.
Potential Value Impact
Land to lease may depreciate as the lease term comes to an end, unlike freehold properties, which often appreciate more freely. This can affect resale value, especially in the later years of the lease.
Conclusion
Converting from freehold to leasehold, or from land to lease, in Kenya is a practical step for many. It aligns with laws, opens investment options, and adapts to urban changes. Whether you’re a general public seeker, landowner, or investor, follow the steps, watch costs, and seek help.
Remember, land to lease in Kenya comes in various forms, including land lease, leasehold property, and land lease agreement. I’ve mentioned land to rent in Kenya about 25 times here to highlight its importance.
For personalized guidance, reach out to Chepchieng and Company Advocates. They’re your go-to for all things land in Kenya, including land ownership and leasing.
If you have questions, such as how to lease government land in Kenya or land lease in Nairobi, Kenya, feel free to ask. Stay informed and make wise choices with your land.
