Conveyancing in Kenya refers to the legal process of transferring ownership of land and property from one party to another. Given the significance of land as a primary asset and source of wealth in Kenya, the conveyancing process is governed by a comprehensive legal framework designed to protect the interests of all parties and ensure the integrity of property transactions. Understanding this process is essential for anyone involved in buying, selling, or leasing property in Kenya.
The conveyancing process typically begins with the negotiation and execution of a sale agreement between the vendor and the purchaser. The sale agreement sets out the terms of the transaction, including the purchase price, payment schedule, completion date, and any conditions precedent. It is customary for the purchaser to pay a deposit of ten to thirty percent of the purchase price upon execution of the agreement, with the balance payable upon completion.
Due diligence is a critical phase of the conveyancing process. The purchaser's advocate conducts searches at the relevant land registry to verify the vendor's title, ascertain any encumbrances, charges, or restrictions on the property, and confirm that the property complies with planning and zoning regulations. Additional searches may be conducted at the county government to verify payment of land rates and at the Kenya Revenue Authority to confirm payment of stamp duty.
Once due diligence is satisfactorily completed and all conditions precedent have been fulfilled, the parties proceed to completion. The vendor executes a transfer in favour of the purchaser, and the purchaser pays the balance of the purchase price. Stamp duty, calculated at between two and four percent of the property's value depending on the location, must be paid to the Kenya Revenue Authority before the transfer can be registered. The completed transfer is then lodged for registration at the relevant land registry.
Registration is the final and most crucial step in the conveyancing process. Under the Land Registration Act, 2012, registration confers legal ownership and provides protection against subsequent transactions affecting the same property. The registered proprietor holds the property subject to any encumbrances noted on the register but is otherwise protected from adverse claims. It is therefore imperative that all conveyancing transactions are properly completed and registered to ensure the purchaser obtains good and marketable title.