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RENEWAL AND EXTENSION OF LEASEHOLD PROPERTIES IN KENYA

By Joseph Itume Ndegwa - Lawyer

RENEWAL AND EXTENSION OF LEASEHOLD PROPERTIES IN KENYA

INTRODUCTION

In Kenya we have two tenure systems namely Leasehold and Freehold.

Under Freehold Tenure, Kenyans are allowed to own any parcel of land absolutely without any limiting term/period.

This form of tenure does not allow Non-Kenyan or Foreigners to own land.

The second term of tenure (Leasehold) system is the interest in land for a specific period of time subject to the payment of land rent to the National or County Government.

The Kenyan Laws limits non-citizens to a maximum tenure of 99 years.

RENEWAL OF EXPIRED LEASES

Renewal of Leases occurs when the Leasehold term has expired and the Lessee failed to extend the said Lease during its subsistence.

EXTENSION OF LEASES

This is done before the expiry of a Lease.

Section 13 of the Land Act 2012 provides that the National Land Commission (NLC) should notify the registered owners (Lessee) within Five (5) years of the impending expiration date of the Lease.

Failure by the Lessee to respond to the notification within one (1) year empowers the commission to publish the notification in two newspapers of nationwide circulation and requires the Lessee to respond to the notification within six (6) months from the date of publication.

THE PROCESS FOR RENEWAL OF LEASES IS AS FOLLOWS:

  1. One must engage a licensed physical planner who will apply for the requisite approvals from the relevant County Government where the parcel of land is situated.
  2. Once the PPA 2 Forms are obtained, the said documents together with the duly executed Planning Brief (in triplicate) are submitted to the Director of Land Administration/respective County Land Administrator for (whichever is applicable) for approval.
  3. Thereafter, a circulation letter by the Director of Land Administrator/County Land Administrator is issued for purposes of seeking comments from the Director of Physical Planning and Surveys or the respective County Physical Planner/Survey.
  4. Once you obtain a letter of no objection from the director of Surveys, the Director of Land Administration issues a provisional approval of the extension of Lease.
  5. The Property is thereafter re-surveyed and new RIM Map is prepared by a registered Surveyor.
  6. Re-Valuation of the new re-surveyed parcel is then carried out to ascertain the new rent.
  7. Director of the Land Administration issues the final approval.
  8. Preparation of Surrender and issuance of new Lease reflecting the new term is undertaken by a licensed advocate.
  9. A new Title/Lease Instrument reflecting the new term is then issued.

This article is intended for general knowledge only. For substantive legal advice on this, please contact us through info@kairumccourt.com


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