The Land (Amendment) Act 2024: What It Means for Property Owners & Real Estate Investors in Kenya

Signed into law in October 2025, the Land (Amendment) Act, 2024 represents one of the most significant reforms in Kenya’s land ownership and land administration systems in decades. The new law seeks to modernize tenure structures, tighten regulatory oversight, and create a more transparent and efficient land market.

For property owners, developers, investors, and anyone participating in Kenya’s real estate sector, these changes have far-reaching implications.

Here is a clear, comprehensive breakdown of what the Act means — and how to prepare.

1️⃣ Freehold to Leasehold Conversion: A Fundamental Shift

One of the biggest changes introduced by the Act is the conversion of freehold land into leasehold tenure.

What this means:

• Freehold (ownership in perpetuity) may now be converted into 99-year leasehold.

• Once the 99-year term expires, the land reverts to the State, unless renewed.

• Renewal guidelines will be set through future regulations.

While you still enjoy full ownership rights during the lease period, this reform affects:

• Long-term land planning

• Inheritance structures

• Property valuation

• Use of property as collateral

• Development rights

This shift aligns Kenya with land-tenure systems used across many Commonwealth countries.

2️⃣ Introduction of Annual Land Rent for Leasehold Titles

The Act introduces a new cost element — annual ground rent.

Previously:

• Freehold owners paid rates and taxes, not rent.

Under the new system:

• Owners of converted leasehold parcels will pay annual rent, set by forthcoming regulations.

• The amount may vary by location, land use, and valuation parameters.

This change affects:

• Investment cash flow

• ROI calculations

• Mortgage and financing decisions

• Landholding costs

• Property resale values

Property owners and investors will need to budget for recurring payments going forward.

3️⃣ Stricter Land Registration and Enhanced Government Oversight

To tackle fraud, duplicate titles, and irregular land transactions, the Act strengthens regulatory controls.

Key updates include:

• Gazettement of all public-land transactions before registration.

• More rigorous verification for transfers, subdivisions, amalgamations, and title issuance.

• A deeper shift toward digital land management, especially under Ardhisasa.

• Tighter scrutiny of beneficial ownership for corporate landholders.

These changes promote:

• Cleaner land records

• More transparent ownership structures

• Reduced fraud

• Stronger protection for buyers and investors

While processes may take longer, the overall market becomes safer and more predictable.

4️⃣ Reinforcement of Foreign Ownership Restrictions

Article 65 of the Constitution already restricts foreign entities from owning freehold land.
The new Act reinforces and strengthens this position:

• Only Kenyan citizens may hold freehold titles.

• Foreign nationals and companies with any foreign shareholding may only hold 99-year leasehold titles.

• Existing freehold titles held by foreigners may be converted following review.

• Corporate structures used to hide foreign ownership will face greater scrutiny.

This move ensures transparency and compliance across all landholding categories.

What Types of Freehold Land Will Be Converted to Leasehold?

Under the Land (Amendment) Act, 2024, conversion applies to specific categories of land:

🏠 1. Freehold Land Owned by Non-Citizens

Any freehold property registered under:

• A foreign individual

• A company with foreign shareholders

…will be converted to 99-year leasehold.

🌍 2. Land in Strategic or Protected Areas

Freehold parcels located in areas considered sensitive for:

• National security

• Environmental protection

• Resource management

…may also be converted, to ensure better State oversight.

🏢 3. Corporate Landholding with Mixed Ownership

Companies registered in Kenya but with partial foreign shareholding may have freehold titles converted.
The Act mandates full disclosure of beneficial ownership, closing loopholes used to bypass foreign ownership restrictions.

📜 What Remains Unaffected

• Kenyan citizens holding freehold land.

• Community land and traditional/ancestral freeholds — unless legally reclassified.

• Public institutions holding freehold under existing legal frameworks.

   

5️⃣ What Property Owners and Investors Should Do Now

Whether you already own land or plan to acquire property in the future, here are the key takeaways:

✔️ Expect changes to your title

If your land is eligible for conversion, review:

• Title deeds

• Notices from the Ministry of Lands

• Updates from the National Land Commission

✔️ Prepare for annual rent

Factor leasehold rent into long-term financial planning.

✔️ Strengthen due diligence

Transactions will require more rigorous checks:

• Title searches

• Document verification

• Survey reports

• Professional conveyancing services

✔️ Investors should revise financing strategies

Banks may adjust their lending policies around leasehold collateral.
If you rely on land for borrowing, consult your financier early.

✔️ Keep close track of regulations

Implementation details — including rent assessment, conversion processes, and renewal terms — will be issued through gazetted regulations.

6️⃣ What Happens Next?

Although the Act is now law, its full implementation depends on:

• Official gazettement of guidelines

• Regulations from the Ministry of Lands

• County land administration procedures

During this transition period, property owners are advised to:

• Review ownership documents

• Consult lawyers, surveyors, and real estate professionals

• Monitor announcements from the Ministry of Lands, NLC, and County Lands Offices

The Land (Amendment) Act, 2024 marks a new era in Kenya’s real estate sector.
While the changes introduce new compliance requirements, they also aim to improve transparency, fairness, and long-term planning.

Whether you are buying, selling, developing, or investing, staying informed is critical.