Why you should invest in Kenya now!
Well we all know that the value of any real estate estate is constantly appreciating. Therefore, despite the current market slow down due to the pandemic, real estate remains a safe bet for investors. In addition to this, people will always need a roof over their heads, thus the guaranteed demand for investors in the residential sector, coupled with increased property value once the economy gets back on track. Real estate guarantees you of a good return on investment margin.
Real estate also offers stability. The sudden toll the pandemic has taken on every industry is un imaginable. Right now, long term rental properties do offer stability and the probability for appreciation. In real estate, an investor can improve, lease, sell, or borrow against the property at any time. In this way, money invested in real estate is more controllable and versatile.
Since we have seen the economy drastically slowdown, causing a shift in the market sellers are tending to offer lower rates for their property. However, demand will reassert itself once the pandemic passes, and meanwhile, most construction projects that had earlier stalled are back on board.
In the market is slow and buyers are few. Therefore, it is a great time to expand your real estate portfolio or rather upgrade to a larger home, as developers are offering easy payment schemes and customized payment plans for customers. Some of the available payment options in the market include;
Can foreigners own property in Kenya?
Foreigners can own property in Kenya in their name. The Constitution (2010), the Lands Act (6/2012) and the Land Registration Act (3/2012), subject to certain limitations, grant the right to any person, either individually or in association with others, to acquire and own land in Kenya. This is important as many foreign investors have been duped into believing that they cannot own land in their own name in Kenya.
In Hartmann v Mbogo (Civil Case 222/2007), Grounstra v Wanje (Civil Case 284/2007) and many similar cases involving coastal properties, foreigner investors have entered into agreements and arrangements with locals with a view to the locals purchasing properties on their behalf. This is usually based on the alleged representation that a foreigner cannot own land in their own name. Such unnecessary partnerships between locals and foreigners often turn sour and should be avoided.
Before a foreigner purchases property, proper research should be undertaken and qualified professionals should be engaged.
Limitation of property ownership
The limitations of property ownership in Kenya by foreigners can be found in the Constitution and the Land Control Act (Cap 302).
As per Article 65(1) of the Constitution, a "person who is not a citizen may hold land on basis of leasehold tenure only, and any such lease, however granted, shall not exceed ninety nine years". However, on expiry of the leasehold term a renewal of the lease may be sought. Article 65 further provides that any document which purports to confer on a foreign investor an interest in land with a lease of more than 99 years is deemed and regarded as conferring on that foreigner a 99-year lease and no more. This means that foreign investors can purchase leasehold properties for more than 99 years. However, the constitution implies that it will be deemed as conferring only a 99-year leasehold interest on the foreigner.