Variance between Leasehold and Freehold Land
In Kenya, the concept of land ownership has evolved, with significant changes occurring in recent years. By understanding these concepts, you will gain valuable insights into some of the Kenyan land ownership regulations and the differences between leasehold and freehold type of lands.
During the colonial era, white settler farmers in Kenya enjoyed absolute ownership of land for up to 999 years. We have so far inherited this legal structure which has shaped the land ownership system for many years.
However, in 2010, Kenya introduced a new constitution that brought about significant changes to land ownership regulations. One of the key amendments was the reduction of leasehold ownership from 999 years to 99 years. This change aimed to address historical imbalances and promote equitable land distribution.
What is Leasehold Land Ownership?
Under the leasehold system, individuals or entities can own land for a maximum of 99 years. This ownership is subject to renewal upon expiration of the lease term.
The constitution states that both foreigners and Kenyan citizens can own leasehold land, guided by the tenure regulations in that specific locality. This means that even a citizen of a different country can be able to have ownership of land in Kenya but for a set period of time.
In addition ,Leasehold land has annual rates payable to the county government.
What is Freehold Land Ownership?
Unlike leasehold, freehold land ownership grants individuals or entities the right to own land in perpetuity. This means that there are no time limitations or lease renewals required.
The 2010 constitution stipulates that only Kenyan citizens have the right to own freehold land, without any time limitations. This provision aims to protect the interests of the local population and ensure sustainable land management.
Freehold land ownership is reserved exclusively for Kenyan citizens. This provision ensures that the local population has long-term control over their land and promotes national sovereignty.
Freehold land is generally considered a valuable asset, making it an attractive option for long-term investments and development projects
Investment Potential:
Understanding the differences between leasehold and freehold land ownership is crucial for anyone interested in acquiring land in Kenya. While leasehold offers limited-time ownership, freehold provides perpetual ownership rights. Both systems have their advantages and considerations, and it is essential to assess individual needs and goals before making a decision.
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