The real estate sector in Nairobi, Kenya's capital and largest urban center, operates under a comprehensive national legal framework supplemented by county-specific regulations. These govern land ownership, registration, use, development, transactions, and related activities to ensure orderly growth, protect property rights, and promote transparency.

Key National Legislation Governing Real Estate

The primary sources of real estate law in Kenya include:

  • Constitution of Kenya, 2010 — Establishes the foundational right to property under Article 40, classifies land as public, private, or community, and mandates regulation of land use for public interest.
  • Land Act, 2012 — Regulates the administration, management, and sustainable use of land, including equitable access and environmental considerations.
  • Land Registration Act, 2012 — Consolidates and rationalizes title registration, providing for secure tenure through a unified land register, protection against fraud via mechanisms such as cautions, restrictions, and inhibitions, and procedures for transfers, charges, and co-ownership.
  • Physical and Land Use Planning Act, 2019 — Governs spatial planning, zoning, development control, and preparation of national, county, and local plans to guide land use, subdivision, and building approvals.
  • Estate Agents Act, Cap 533 — Regulates the registration and professional conduct of estate agents involved in property sales, purchases, or lettings.

Additional relevant statutes address specific aspects, such as the National Construction Authority Act (for building oversight), rent control provisions under the Rent Restriction Act (where applicable), and emerging frameworks like the Affordable Housing Act and related 2025 regulations.

A notable development is the Real Estate Regulation Bill, 2023, which proposes establishing a Real Estate Board to register agents, developers, and projects, enhance accountability, and maintain public databases—though its enactment status should be verified with current parliamentary records.

Nairobi-Specific Regulations

As a devolved function under the Fourth Schedule of the Constitution, Nairobi City County exercises authority over land use planning and development control within its jurisdiction. Key elements include:

  • Enforcement of zoning bylaws, which designate areas for residential, commercial, industrial, or mixed uses, specifying parameters such as plot coverage, building heights, setbacks, and density.
  • Requirement for development permissions prior to construction, subdivision, or change of user, processed through the county's planning department.
  • Compliance with the Physical and Land Use Planning (Building) Regulations and national building codes for structural integrity and safety.
  • Collection of land rates (typically 0.1–0.5% of property value annually) and issuance of occupation certificates upon completion.

Recent judicial directives (e.g., as of 2025) have emphasized Nairobi County's obligation to finalize and gazette comprehensive local physical and land use development plans to address gaps in zoning enforcement.

Practical Considerations for Real Estate Transactions in Nairobi

  • Due Diligence — Conduct title searches at the Lands Registry to verify ownership, encumbrances, and restrictions; confirm zoning compliance and obtain necessary approvals from the county.
  • Foreign Ownership — Non-citizens may acquire property in urban areas (including Nairobi) on leasehold terms (typically up to 99 years), with restrictions on agricultural land.
  • Professional Involvement — Engage licensed professionals (e.g., advocates, surveyors, registered physical planners) for searches, valuations, and applications.
  • Taxes and Fees — Transactions attract stamp duty (typically 4% for urban land), capital gains tax, and other levies; developers and agents must comply with registration requirements.
  • Construction Oversight — Obtain National Construction Authority certification for projects to secure occupation permits.

Prospective investors, buyers, or developers should consult official sources such as the Ministry of Lands and Physical Planning, Nairobi City County portals, or qualified legal professionals for the most current requirements, as regulations evolve through amendments, court rulings, and policy updates. Adherence to these frameworks mitigates risks of disputes, demolitions, or invalid transactions in Nairobi's dynamic real estate market

Chat About This