Kenya Property Centre

Leasehold

Last checked 13 October 2026 · Checked by the Property Centre content team

Leasehold is holding land in Kenya for a fixed number of years under a lease, usually from the government. When the lease ends, the land goes back to the lessor unless it is extended or renewed. Leasehold land is registered with a certificate of lease and usually pays annual land rent.

General information, not legal advice. Last checked 13 October 2026.

Also called: leasehold land, lease, leasehold title

What owning leasehold land involves

Most land in Kenyan towns and cities is leasehold. The national government (or a county) is the head lessor, and the owner holds the land for the term written on the lease. The title document is a certificate of lease.

What the owner pays. Leaseholders usually pay land rent to the national government every year, as well as county rates. Before a transfer, the registry wants a rent clearance certificate showing the land rent is paid.

Selling or borrowing. A lease usually says the lessor must consent before the land is transferred, charged or sublet. This is the "consent to transfer" from the Ministry of Lands, which is separate from Land Control Board consent.

When the lease runs out. The owner applies for an extension before expiry or a renewal after it. The Land Act 2012 expects the National Land Commission to notify lessees before expiry. The process goes through county planning, the commission, a new survey where needed, a review of the land rent and a new letter of allotment, then registration.

Non-citizens. Article 65 of the Constitution lets non-citizens hold land only on leasehold, with a capped term (see the figures box). Longer terms granted to non-citizens are read down to that cap.

Apartments. Flats sold before the Sectional Properties Act 2020 were usually sold as long sub-leases of the developer's land. The Act requires these to be converted to sectional titles.

Differences by county

  • Nairobi: most titles are government leases. Older ones may show very long colonial-era terms; newer grants are shorter.
  • Mombasa, Kisumu, Nakuru and other towns: mostly government leases, with land rent paid to the Ministry of Lands.
  • Former settler areas around Nairobi and Kiambu: some titles carry very long leases from the colonial period. These are not the same as freehold.

What to check

  • How many years are left on the lease? Banks may not lend on a short unexpired term.
  • Is the land rent paid up? Ask for the rent clearance certificate.
  • Has the lessor's consent to transfer been obtained or applied for?
  • Does the permitted use on the lease (residential, commercial) match what you plan to do?

Red flags

  • A lease close to expiry with no extension application.
  • Unpaid land rent arrears that the seller wants you to take over.
  • A use on the lease that does not match the building on the land.

Typical cost or timeline

Longest lease a non-citizen can hold

99 years

As of October 2026

Kenya Law (National Council for Law Reporting) Rödl & Partner Hogan Lovells

Leasehold vs Freehold

Aspect Leasehold Freehold
How long you own it For the years left on the lease Indefinitely
Title document Certificate of lease Certificate of title
Annual land rent Usually yes No
Where it is common Towns and cities Rural and agricultural land

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Questions

What happens when a leasehold expires in Kenya?

The land goes back to the lessor unless the owner has the lease extended or renewed. Start the extension process well before the expiry date.

Can I get a mortgage on leasehold land?

Yes, if enough years are left on the lease and the lessor consents to the charge.

Leasehold vs freehold: which is better?

Freehold has no end date and no land rent; leasehold is normal in towns. A long, clean leasehold is a sound purchase. See the comparison table.

Can I convert leasehold to freehold?

Not as a matter of course. Extension or renewal of the lease is the normal route. Take advice from an advocate.

Sources

  1. 1. Land Registration Act No. 3 of 2012 Kenya Law (National Council for Law Reporting) · checked 13 October 2026
  2. 2. Land Act No. 6 of 2012 Kenya Law (National Council for Law Reporting) · checked 13 October 2026
  3. 3. The key aspects of extension and renewal of leasehold titles in Kenya CM Advocates · checked 13 October 2026
  4. 4. Constitution of Kenya 2010 Kenya Law (National Council for Law Reporting) · checked 13 October 2026
  5. 5. Foreign ownership of land in Kenya Rödl & Partner · checked 13 October 2026
  6. 6. Kenya land laws: questions arising (September 2012) Hogan Lovells · checked 13 October 2026
  7. 7. Explained: how land rates work and how to avoid penalties Kenyans.co.ke · checked 13 October 2026
  8. 8. Ministry of Lands and Physical Planning service charter Ministry of Lands · checked 13 October 2026
  9. 9. Notice on registration of sectional units (May 2021) Ministry of Lands · checked 13 October 2026

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Cite this definition

"Leasehold", Kenya Property Centre Property Glossary, last checked 13 October 2026, https://kenyapropertycentre.com/glossary/leasehold

You may reuse this definition under CC BY 4.0 with credit to Kenya Property Centre and a link to this page.

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