Introduction
Purchasing property in Kenya is one of the most significant financial decisions most individuals and businesses will make. Yet the conveyancing process — the legal transfer of ownership from seller to buyer — remains poorly understood by many buyers, who often discover its complexities only after problems arise.
This guide walks you through every stage of a standard Kenyan property transaction, from initial due diligence through to registration of title in your name.
Step 1: Title Due Diligence (Before You Pay Anything)
Before committing any funds, your advocate must conduct a thorough title search. This is non-negotiable. The key searches include:
Land Registry Search: An official search at the relevant Lands Registry (Nairobi, Mombasa, Kisumu or the relevant county registry) confirms the registered owner, the nature of the title (freehold or leasehold), and whether any charges, cautions, restrictions or court orders are registered against the property.
Mutation and Survey File: A search at the Survey of Kenya office confirms the boundaries and history of the parcel. This identifies historical disputes, boundary changes or illegal subdivision.
County Land Rates: A clearance from the relevant county government confirms that land rates (annual land taxes) are fully paid. Unpaid rates create a lien on the property that can delay or prevent transfer.
Caution Check: A caution registered against a title prevents any dealings without the cautioner's consent or a court order. Discovering a caution after paying a deposit can make recovery difficult.
Encumbrance Search: This identifies any registered mortgages, charges or restrictions that must be discharged before transfer can proceed.
Step 2: Sale Agreement
Once due diligence is satisfactory, your advocate drafts or reviews the Sale Agreement — the binding contract between buyer and seller. A well-drafted Sale Agreement should specify:
- The parties (buyer and seller, with full legal names as on national IDs or registration certificates).
- The purchase price and payment schedule.
- The deposit amount and what happens to it if the transaction collapses.
- Completion date (the completion period agreed between the parties).
- Title warranty by the seller.
- Conditions precedent (e.g., discharge of existing mortgage, removal of caution).
- Default and termination provisions.
- Adjustments for outstanding rates and outgoings.
Never sign a Sale Agreement without having it reviewed by your advocate. Sellers' advocates draft agreements that protect the seller — your advocate ensures your interests are equally protected.
Step 3: Stamp Duty Assessment and Payment
Stamp duty is payable to the Kenya Revenue Authority (KRA) before the transfer document can be registered. The applicable rates are:
- 4% of the transfer value for properties within a municipality or urban area.
- 2% of the transfer value for properties outside municipalities.
For leasehold land (government land), the value for stamp duty purposes is assessed by a government valuer. For freehold land, the parties may agree a value for stamp duty, though KRA can challenge an under-declared value.
Your advocate prepares the stamp duty assessment, submits it to KRA, and obtains the stamp duty payable figure. Payment is made electronically through the KRA portal. Unstamped transfer documents are inadmissible as evidence and cannot be registered at the Lands Registry.
Step 4: Execution of Transfer Documents
Once stamp duty is assessed (and paid or secured for payment on completion), the transfer documents are executed. In Kenya, the primary instrument is a Transfer of Land under the Land Registration Act 2012. Both seller and buyer must sign the Transfer in the presence of a witness. For corporate sellers or buyers, the execution must comply with the Companies Act 2015 (typically by two directors or a director and secretary).
If the property is charged (mortgaged), the lender must execute a Discharge of Charge, which will be registered simultaneously with the transfer.
Step 5: Completion
Completion is the moment the buyer pays the balance of the purchase price and the seller hands over the executed transfer documents, the original title deed and keys. In transactions involving a mortgage, your bank's advocate and the seller's advocate coordinate the simultaneous release of funds and transfer documents.
Your advocate holds the funds in client account until completion conditions are satisfied — ensuring neither party releases funds or documents prematurely. This is why escrow arrangements through a lawyer are critical in high-value transactions.
Step 6: Registration of Transfer
After completion, your advocate lodges the executed Transfer of Land, the Discharge of Charge (if applicable), the KRA stamp duty payment confirmation, and supporting documents at the Lands Registry. Registration typically takes 2–6 weeks in Nairobi, though timelines vary.
Upon registration, the Lands Registry issues a new title deed reflecting you as the registered proprietor. You are now the legal owner.
Common Pitfalls to Avoid
- Never pay a deposit without conducting a title search first.
- Do not rely on photocopies of title deeds — always obtain official search results from the registry.
- Check that the seller's identity matches the title — fraud involving false sellers is a real risk.
- Ensure all cautions and charges are removed before completion, not after.
- Budget for all transaction costs — stamp duty (4%/2%), Land Registry fees, advocate fees and survey costs add up.
Timelines
A conveyancing transaction typically takes approximately 90 days. Transactions involving financing, subdivision, consents or title complications can take longer. The main stages are:
- Due diligence and official searches
- Negotiation and execution of the Sale Agreement
- Stamp duty assessment and payment
- Completion on the date agreed in the Sale Agreement
- Registration of the transfer at the Lands Registry
Conclusion
Conveyancing in Kenya is a structured but complex process. A qualified advocate is not a luxury — they are your primary protection against title fraud, hidden encumbrances and contractual traps. WTT Lichuma Advocates LLP has been serving Kenya's property sector for over 20 years. Contact us for experienced, thorough conveyancing support.