BOTSWANA
ETHIOPIA
KENYA
MADAGASCAR
MALAWI
MAURITIUS
NIGERIA
RWANDA
SUDAN
TANZANIA
UGANDA
ZAMBIA
K E N YA G U I D ESECTOR
REAL ESTATE
A&K is the largest corporate law rm in East Africa and is generally considered the leading full service corporate
law rm in Kenya. The rm has ofces in the Kenyan business centres of Nairobi and Mombasa. A&K is a member
of ALN, an alliance of 12 independent top-tier African law rms. A&K works closely with its afliate ofces in
Tanzania and the UAE.
Areas of Practice
Real estate, infrastructure, energy, natural resources (including oil and gas), mergers and acquisitions, capital
markets, private equity, corporate and commercial law, competition law, banking and regulatory advisory work,
insurance, trusts, tax, aviation, telecommunications, project nancing, privatisation law, public procurement,
property development, labour and employment, litigation, arbitration and intellectual property.
Anjarwalla & Khanna | ALN Overview
ALN MEMBERS
BOTSWANA (COLLINS NEWMAN & CO.)
ETHIOPIA (MESFIN TAFESSE & ASSOCIATES LAW OFFICE)
KENYA (ANJARWALLA & KHANNA)
MADAGASCAR (MADAGASCAR LAW OFFICES)
MALAWI (SAVJANI & CO.)
MAURITIUS (BLC ROBERT & ASSOCIATES)
NIGERIA (G. ELIAS & CO.)
RWANDA (K-SOLUTIONS & PARTNERS)
SUDAN (OMER ALI LAW FIRM)
TANZANIA (ATZ LAW CHAMBERS)
UGANDA (MMAKS ADVOCATES)
ZAMBIA (MUSA DUDHIA & CO.)
ADNAN KHAN PRINCIPAL ASSOCIATE
AMYN MUSSAPARTNER
FIDEL MBAYAPRINCIPAL ASSOCIATE
KARIM ANJARWALLAMANAGING PARTNER
NAFYSA ADAMPRINCIPAL ASSOCIATE
SONAL SEJPALDIRECTOR
JAINI SHAHASSOCIATE
MARJORIE KIVUVA ASSOCIATE
NICOLE GICHUHIASSOCIATE
PAUL WANJOHIASSOCIATE
SAAHIL PATEL ASSOCIATE
JAMES NJENGAASSOCIATE
FRED MOGOTUASSOCIATE
AKASH DEVANI PARTNER
MONA DOSHIPARTNER
OMAR SAIDPRINCIPAL ASSOCIATE
VIVIAN KERAGEASSOCIATE
ZAINAB BACHOOSENIOR ASSOCIATE
CAROLINE KARUGUSENIOR ASSOCIATE
The A&K Real Estate Team
REGIONAL OFFICEUAE (ANJARWALLA COLLINS & HAIDERMOTA)
This Real Estate Guide provides an overview of Kenyas real estate sector. It provides useful information to investors
and stakeholders on legal aspects of the industry, such as applicable regulatory frameworks and basic taxes.
Introduction
The main laws governing the real estate sector in Kenya include:
The Constitution of Kenya, 2010 which under Chapter Five provides a legal framework for transactions
in land and the environment.
Statutes:
National Land Commission Act, 2012 (NLC Act) which provides for functions and powers of the
National Land Commission (NLC) and its internal procedures;
Land Registration Act, 2012 (LRA) which governs the registration of dispositions in land;
Land Act, 2012 which consolidates all the different land laws in Kenya and provides for sustainable
administration and management of land and land based resources;
Land Control Act (Cap.302) (LCA) which establishes the Land Control Board (LCB) to regulate
transactions affecting agricultural land;
Landlord and Tenant (Hotels, Shops and Catering Establishments) Act (Cap.301) which provides for
protection of commercial tenants from eviction or exploitation;
Sectional Properties Act, 1987 which provides for the division of buildings into units, ownership of
common property of buildings and for the use and management of units and common property;
Distress for Rent Act (Cap.293) which provides for procedures for levying distress for rent in lease
transactions;
The National Construction Authority Act, 2011 which establishes the National Construction Authority
and its powers and functions;
Environment and Land Court Act, 2011 (ELC Act) which establishes the Environment and Land Court
(ELC) and its powers and functions;
Environmental Management and Co-ordination Act, 1999 (EMCA) which establishes the National
Environment Management Authority (NEMA); and
Physical Planning Act (Cap. 286) (PPA) which provides the procedures for the preparation and
implementation of physical development plans.
Other laws which have an impact on the real estate sector include:
Land (Group Representatives) Act (Cap.287) which incorporates representatives of groups who have been
recorded as owners of land under the Land Adjudication Act.
Forest Act, 2005 which governs the establishment, development and sustainable management of Kenyas
forests.
Stamp Duty Act (Cap 480) which provides for the levying and managing of stamp duties.
Proposed laws which will affect the real estate sector if enacted are:
The Land Laws (Amendment) Bill, 2015 which seeks to amend the land laws to align them with the
Constitution, to provide for procedures on evictions from land and for connected purposes.
The Community Land Bill, 2015 which seeks to regulate the use of community land and its registration.
The Physical Planning Bill, 2015 which seeks to amend the PPA to align physical planning laws with the
Constitution.
Legal Framework
2
Institutional FrameworkThe key government agencies that regulate the real estate sector include:
Ministry of Land, Housing and Urban Development
In charge of providing policy direction and coordinating all matters related to
land, housing and urban development.
Land Registries
Established under the Land Registration Act for maintaining land registers and undertaking
registration of transactions in land in each registration unit.
National Environment Management Authority (NEMA)
Established under the Environmental Management and Co-ordination Act and whose
function is to implement all policies relating to the environment.
Department of Surveys
Responsible for national
surveying and mapping of
land.
Environment and Land Court (ELC)
A superior court established under the ELC Act to hear and determine disputes relating to
the environment and the use, occupation of and title to land.
Land Control Board (LCB)
Established under the Land
Control Act to control
transactions affecting
agricultural land.
County Governments
Established under the Constitution and tasked with approving development
projects within the counties. They also hold community land in trust for the
local communities within their jurisdiction.
National Land Commission (NLC)
Established under the NLC Act to regulate the use of public land and
formulate national land policy.
3
Structuring Real Estate ProjectsExample of Large-Scale Real Estate Project Structured by A&K
LAN
D O
WN
ER
CO
NSTR
UC
TION
C
ON
TRA
CTS
(APA
RTM
ENTS)
LON
G
TERM
LEA
SES
LON
G TER
M LEA
SES
DEB
T FINA
NC
ING
DEB
T FINA
NC
ING
EQU
ITY FIN
AN
CIN
GPR
IVA
TE EQU
ITY FIR
MS A
ND
DIR
ECT FO
REIG
N IN
VESTO
RS
COM
MERCIA
LBA
NK
SRETA
IL DEV
ELOPM
ENT
(OFFSH
ORE EN
TITY)
SHO
RT
TERM
LEASES
INTERN
ATIO
NA
L AN
D
LOCA
L RETAILERS/TEN
AN
TS
(RETAIL MALL)
CO
NSTR
UC
TION
CO
NTR
AC
T (IN
FRA
STRU
CTU
RE)
MA
NA
GEM
ENT A
GR
EEMEN
T
MA
NA
GEM
ENT
AG
REEM
ENT SER
VIC
E AG
REEM
ENT
LPG SU
PPLY C
ON
TRA
CT
PRO
VISIO
N O
F SOLA
R
SUPPLY
OF ELEC
TRIC
ITY
LPG SU
PPLIER
PRIV
ATE SO
LAR
DEV
ELOPER
GO
VER
NM
ENT
UTILITY
MA
NA
GEM
ENT
CO
MPA
NY
SECU
RITY
CLEA
NIN
GG
AR
DEN
ING
(OFFSH
OR
E ENTITY
) CO
NTRA
CTOR
RESIDEN
TIAL D
EVELO
PMEN
T(LO
CAL EN
TITY)
HO
ME O
WN
ER
COM
MERCIA
LBA
NK
S
COM
MERCIA
L DEV
ELOPM
ENT
(THIRD
PARTY
)
4
A&K works on the majority of landmark developments in the country and increasingly in East Africa. In particular,
A&K has unique on-the-ground experience in large-scale developments in Kenya. A&K has strong business and
regulatory relationships enabling a concise understanding of structuring a deal in light of potential economic,
political and nancial risk.
Garden City
Acted for Actis on its development of Garden City, a USD 250 million, greeneld, integrated mixed-use project in
Nairobi, including advising on the overall corporate and management structure, preparing all agreements relating
to the land acquisition, project construction, residential unit sales, retail shop leases and handling all regulatory and
licensing matters.
Two Rivers
Acting for Centum on its development of Two Rivers, a ve-year