Last verified: September 2026
Freehold, leasehold, and sectional title are the three ownership types you will run into buying property in Kenya, and mixing them up is an expensive mistake. Freehold means you own the land outright, indefinitely, with no rent owed to the national government. Leasehold means you own it for a fixed period, usually 99 years and sometimes 33 or 50 years, you pay annual land rent to the government on top of county land rates, and the term has to be renewed, not automatically, as it runs down. Sectional title, created under the Sectional Properties Act 2020, is what applies when you buy a unit inside a shared building, such as an apartment or maisonette: you get an individual title for your unit plus a share of the common property. Each type carries its own checklist, and this guide walks through all three.
Before you start: the tenure type is not a matter of how the seller describes the property. It is stated on the title itself (freehold, or leasehold with a specific term) and confirmed on an official search from the Ministry of Lands or Ardhisasa. Pull that search before you rely on anything else in this article.
What is freehold land in Kenya?
Freehold is absolute ownership. There is no expiry date, no lease term counting down, and no land rent payable to the national government. Once you are registered as proprietor under the Land Registration Act, 2012 (the full text is on Kenya Law’s website), you hold that interest indefinitely, subject only to whatever is noted on the title itself (restrictions, charges, easements) and to your county government’s land rates, which apply whether your land is freehold or leasehold.
Most freehold land in Kenya is agricultural or in older, established residential areas, much of it dating to land-adjudication and settlement programs that converted trust or government land into individual titles after independence. Common examples are family land in Central Kenya, parts of the Rift Valley, and older Nairobi suburbs. Freehold status alone does not mean a title is clean, though: unresolved succession, boundary disputes, and fraudulent transfers happen on freehold parcels just as on leasehold ones, so a search and survey confirmation still matter.
One restriction worth knowing: under Article 65 of the Constitution, only Kenyan citizens (and citizen-owned companies) can hold freehold land. Non-citizens are limited to leasehold, capped at 99 years, regardless of how a deal is marketed.
What is leasehold land, and how does the 99-year lease work?
Leasehold is ownership for a fixed term, granted either by the national or county government out of public land, or privately when a freeholder sub-leases their own land for a set number of years. Ninety-nine years is the most common term for urban plots and older government allocations; 33-year and 50-year terms show up on some agricultural leases and historical allocations.
Two things follow. First, you owe annual land rent to the national government, administered through the Ministry of Lands, on top of (not instead of) county land rates, and unpaid land rent can block transfers and eventually renewal. Second, most leases carry user or development conditions attached at grant, such as restricting the land to residential use or requiring development within a set period, and breaching them is a real risk at renewal time, not a formality.
Leasehold is also the only tenure available to non-citizens buying property in Kenya, capped at 99 years by the Constitution, which is why so much foreign-owned property in Nairobi and along the coast is structured this way.
What happens as a leasehold term runs down?
Nothing dramatic happens on the day a countdown crosses some round number, but the practical value of a lease erodes well before it actually expires. Many banks become reluctant to lend against a leasehold title once the remaining term falls toward 30 to 40 years, since the security they hold is worth less the closer it gets to reverting. That means a 99-year lease with 35 years left can be genuinely hard to mortgage, even though 35 years sounds like a long time.
Renewal is not automatic, which surprises a lot of buyers. Under the Land Act, 2012 and its lease-renewal regulations, an application goes to the National Land Commission (national government land) or the county (county land), typically once around 50 years or less remain on a 99-year lease, or 25 years or less on a 50-year one. Approval depends on land rent and rates being fully paid, compliance with the lease’s development and use conditions, and whether the land is needed for a public purpose such as a road or school, which can override even a fully compliant leaseholder’s application. Kenyan citizens get a pre-emptive right to apply ahead of the public, but that is a right to apply, not a guarantee.
If a lease is not renewed, the land and anything built on it reverts to whoever granted it: the government, where the government granted it, or the private freeholder, where it was a private sub-lease, not the state. That distinction matters when you are weighing what happens at expiry. Either way, treat “years remaining” as a hard number from the title, not a rounding error. A property marketed simply as “leasehold, 99 years” without saying when the term started could have 80 years left, or 15.
What is a sectional title, and how is it different from buying a standalone plot?
A sectional title applies to a unit inside a multi-unit development, such as an apartment, maisonette, townhouse, or office block, rather than a standalone house on its own plot. Under the Sectional Properties Act, 2020, the building is split into individually registered units, each with its own title, plus common property (stairwells, the roof, parking, compound, water tanks) that every owner holds jointly as tenants in common, in shares proportionate to their unit. A registered management corporation made up of all the unit owners runs the building day to day under statutory by-laws.
That is a genuinely different bundle of rights from owning a plot outright. On your own plot, you decide what happens on it, subject only to planning law and your own title conditions. In a sectional development, you share the physical structure and its costs with everyone else in the building: you pay a proportionate service charge for security, lifts, refuse collection, and common-area repairs, your right to alter your own unit’s exterior or common-facing elements is constrained by the by-laws, and a decision by the management corporation (a special resolution on short-term letting, for instance) can affect how you use a unit you fully own.
Older buildings sometimes use a different structure entirely: a long-term sub-lease, with buyers holding a share certificate in a private company rather than a title in their own name. I’ve seen listings describe that as “title deeds ready” when what is actually on offer is a share in a company. The next section covers why that gap matters and what the law now says about closing it.
The Sectional Properties Act 2020: why some apartment titles still aren’t converted
The Sectional Properties Act, 2020 repealed the 1987 Sectional Properties Act and modernized how buildings are subdivided into individually titled units, matching the process to the Land Registration Act, 2012. Existing developments under the old regime, or sold through the sub-lease and share-certificate structure just described, were required to convert within about two years of the Act taking effect, a deadline that fell due around December 2022.
In practice, conversion has moved slowly. Plenty of established apartment blocks in Nairobi areas like Kilimani, Kileleshwa, and Westlands are still on the old structure years after that window closed, and many owners in those buildings are not even aware the requirement exists. It has started to bite in ordinary transactions: some advocates hesitate to proceed with a sale where the unit has not converted, and some lenders are more cautious about financing a share certificate than an individually registered sectional title. I have also seen recent claims online of a fresh, later deadline for specific buildings, and I would treat those cautiously rather than as settled fact; the safer approach is asking your advocate to confirm the actual registration status of the unit you are buying, not relying on any general date.
For a buyer, the practical question is simple even if the legal history is not: does this specific unit have its own registered title, or does it not, and if not, has the seller or developer started the conversion process. See How Ardhisasa Land Searches Work in Kenya for how to check registration status directly.
Freehold vs leasehold vs sectional title: what to check before buying
The core verification steps (registered proprietor, caveats and cautions, an official search) overlap across all three tenure types and are covered in full in our Complete Guide to Verifying Land and Title Deeds in Kenya. What differs is the extra layer specific to each tenure.
For freehold:
- An official search confirming freehold status and the current registered proprietor, matching the seller’s name and ID.
- No unresolved caveats, cautions, or court cases noted against the title.
- County land rates paid up to date, with a current clearance certificate.
- A licensed surveyor confirming the beacons on the ground match the size and shape on the title.
- If it is family or ancestral land, confirmation that succession has been completed and every beneficiary has genuinely consented to the sale.
For leasehold:
- The exact number of years remaining on the lease, calculated from the actual start date, not the headline term.
- A current land rent clearance certificate from the Ministry of Lands, in addition to the county land rates clearance.
- The development or user conditions attached to the lease, and evidence the current use of the property actually complies with them.
- Who granted the lease, since that determines whether it reverts to the government or to a private freeholder at expiry, and who you would deal with at renewal.
- Whether your target lender will finance a lease with that many years remaining, confirmed before you commit to the purchase, not after.
For sectional title:
- Whether the specific unit has its own individually registered sectional title, rather than a share certificate in a management company.
- A copy of the registered by-laws and the management corporation’s recent accounts, including any service charge arrears on the unit itself.
- Confirmation that the sectional plan and deed plan are registered and match the building’s actual layout.
- Any special resolutions restricting short-term letting, renovations, or pets, if those matter to how you plan to use the unit.
- For a sectional development sitting on leasehold land, confirmation that enough of the residual term remains for the sectional title to be validly registered.
Watch out for: tenure described loosely, not precisely
“Leasehold” with no stated remaining term, and “title deed ready” on a unit that is actually a share certificate, cause the most trouble later. Neither is necessarily dishonest, but neither tells you what you need to know. Get the exact years left, and written confirmation of whether the unit has its own registered title, before you pay anything.
Frequently asked questions
Is freehold better than leasehold in Kenya?
Freehold generally holds value better over time and never needs renewal, but it is not automatically the better buy. A well-located leasehold plot with 70 or 80 years remaining can outperform a poorly located freehold parcel, and much of Nairobi’s commercial core is leasehold by design without that hurting its value. The real questions are location, remaining term, and price, not the label.
Can leasehold land in Kenya be converted to freehold?
Not routinely. Land originally granted as leasehold from government land generally stays leasehold. Conversions to freehold have happened in specific historical settlement programs, but there is no standard process today that lets a buyer simply apply to upgrade a leasehold title. Treat any claim that a leasehold will “automatically convert to freehold” as something to verify with a lawyer, not to take at face value.
What happens if land rent is not paid on a leasehold property?
Arrears accumulate, and the Ministry of Lands can refuse to process a transfer, subdivision, or renewal until they are cleared. Left unresolved long enough, unpaid land rent can put the leasehold interest itself at risk. Always ask for a current clearance certificate before buying; do not accept the seller’s word that payments are up to date.
How many years should be left on a lease before I buy?
There is no single legal cutoff, but many lenders start hesitating to finance a lease once the remaining term falls toward 30 to 40 years, and that threshold varies by bank. If you plan to hold the property for decades or pass it to your children, be more cautious well above that range. Get the exact number of years remaining from the title itself and factor it into the price you are willing to pay.
Do sectional title owners in Kenya pay land rent and rates?
Yes, individually. Under the Sectional Properties Act, 2020, each unit is assessed and billed separately for its own land rent, where the development sits on leasehold land, and its own county land rates, rather than the whole building being billed once and the cost divided by a management company, which is how many older share-certificate arrangements worked.
What is the difference between a share certificate and a sectional title deed?
A share certificate means you own shares in a private company that holds the head-lease over the whole building, and your right to occupy your unit comes from that shareholding and the company’s articles, not from a title registered in your own name. A sectional title deed is a title registered directly to you for your specific unit. The Sectional Properties Act, 2020 pushes existing buildings to move from the former structure to the latter, and the difference matters at resale, at inheritance, and when you try to get a mortgage.
Can foreigners buy freehold land in Kenya?
No. Article 65 of the Constitution restricts non-citizens to leasehold interests only, capped at a maximum of 99 years, regardless of what term a seller or developer offers. If a deal is advertised to a non-citizen buyer as freehold, that is a red flag worth raising with a lawyer immediately, not a bargain worth chasing.
How do I confirm whether my apartment building has converted to sectional titles?
Ask your advocate to run an official search on the specific unit, not just on the mother title covering the whole plot. If the search returns a title registered in your name for your unit, the building has converted. If what you actually hold is a share certificate and the register still shows one long-term lease over the entire parcel, it has not, regardless of what the developer’s marketing said at the point of sale.
See also: The Complete Guide to Verifying Land and Title Deeds in Kenya, How to Check Land Rent and Land Rates Arrears in Kenya, and What to Check Before Buying an Apartment in Kenya. Groups buying land together also need to choose how the title is held, which we cover in how to buy land through a chama in Kenya safely. Whatever the type of title, an occupier who is left on the land for twelve years can claim it, as we explain in how to protect your land from adverse possession in Kenya.
Paul researched Kenya’s land verification process in depth to build this guide, drawing on Ardhisasa’s official documentation and Kenya’s land registration regulations. Questions or corrections: admin@landtitlehub.co.ke.









