Due Diligence Steps in Kenyan Land Deals

2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps.
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 25 OCT 2020  ELVIS ABENGA  ALTERNATIVE DISPUTE

 COMMERCIAL LAW AND CORPORATE LEGAL ADIVSORY, RESOLUTION (1)
CONVEYANCING AND PROPERTY TRANSACTION
 14  BLOC (6)
 BLOC STORIES (3)
 CIVIL AND CRIMINAL

LITIGATION (1)
 COMMERCIAL LAW AND

CORPORATE LEGAL
ADIVSORY (9)
 CONSTITUTIONAL LAW
AND HUMAN RIGHTS
INTRODUCTION (4)
The late James Madison once stated that “if men were  CONVEYANCING AND
angels, no government would be necessary…” (Federalist PROPERTY
TRANSACTION (6)
Papers 51-60). I would extend this statement to also mean
that if men were angels, no law would be necessary, and  ELECTION LAW IN
KENYA (1)
due diligence before transactions would also not be
necessary.  FAMILY AND CHILDREN
LAW (11)
As we very well know, men are not angels. This is especially
 IMMIGRATION LAW (3)
so in land matters. In Kenya, land is a very emotive issue.
Kenya unfortunately has very many fraudsters who purport  INTELLECTUAL

ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM PROPERTY
ll PRACTICE AREAS (1)
ll RESOURCES 
to sell that which they do not have title or power to sell. This
necessitates
ll EVENTS a wise buyerUS
ll CONTACT of land to conduct due diligence  UNCATEGORIZED (3)
over the land to ascertain whether or not the person

purporting to sell the parcel of land, has title to it.
The purpose of this article is to introduce the reader to the

various steps in conducting due diligence before a buyer
pays the purchase price of land to a purported seller.
STEP ONE: OFFICIAL SEARCH AT THE LAND REGISTRY
The first step in due diligence is to conduct an official search

at the Land Registry closest to where the land is sold. We
often advise clients to do this even before drafting an
agreement for sale. The seller of the land would give you or
your advocate a recently certified copy of the title of the
land. With the title copy, one proceeds to either
electronically apply for an official search ( if the land is in
Nairobi or other digitally-enabled registries), or by making a
physical application for official search as is the case in up-
country registries.
Within a day or two, the search results will come out. The
results will contain the following information:
1. The name of the registered proprietor/owner of the

land.
2. Any encumbrances over the land such as charges, (

where the land had previously been charged or
llmortgaged
EVENTS toCONTACT
ll a financial
US institution), registered caveats,
cautions, or restrictions on the land, as well as other

third party rights such as existing easements and
licenses.
3. If the property is a government lease, the remaining
duration of the lease.
With this information, the prospective buyer of the land

would be able to ascertain whether or not the prospective
seller of the land is the actual owner of the land. The other
information on the land would guide the buyer in making
an informed decision whether or not to proceed with the
transaction.
At times the circumstances of the transaction may

necessitate carrying out a historical search. This is a type
of search specially conducted by the registry where the
history of the land and all transactions related to it from the
very first historically recorded transaction, are released.
Historical searches are useful, especially where there is a
dispute as to ownership of the land.
STEP TWO: COUNTY REGISTRY SEARCH
The buyer after completing the official search mentioned in

the preceding section, will then proceed to the county
government
ll EVENTS registry and conduct
ll CONTACT US a search over the records
held at the county government. The county government

registry, will upon paying the necessary fees, give the buyer
the following information over the land:
1. Whether or not land rates have been paid and are up to

date
2. The registered “user” of the land.
Rates
It is important for the buyer to know whether or not rates

have been cleared as a Rates Clearance Certificate will be
required before the title is transferred to the buyer. It is the
duty of the seller of the land to clear all rates.
Registered User
Land is always classified and subdivided into different zones

with different “users”. The word “user” here denotes the
allowable activities in the occupation of the land. For
example, land that is designated as “agricultural”, cannot be
used for any other purpose except as such. One can also
not construct a factory on land that is designated
“residential”.
Conducting a county registry search will aid the buyer to

ascertain the designation of the land and to examine
whether the buyer’s intended exploitation of the land,
conforms to its designated use.
Should it not conform to its designated use, the buyer will

have the option to either withdraw from the transaction or
prompt the seller to apply for a “change of user.”
STEP THREE: REGISTRY OF PERSONS VERIFICATION

This has become a very important step in recent times. Our

office has recently handled a case where a fraudster
impersonated the actual owner of some land in order to
defraud unsuspecting members of the public. The fraudster
forged an identity card showing the name of the actual
owner of the land, but the face of the fraudster. He then
proceeded to enter into an agreement and receive deposits
over the land before cutting all communication.
It is thus important for the buyer of the land to verify the

authenticity of the seller’s identity documents at the registry
of persons before proceeding with the transaction.
STEP FOUR: UTILITY VERIFICATION
In this step, the buyer will visit the various utility companies
to establish whether there are pending unpaid utility bills.
This is important for the buyer to avoid taking over bills that
he/she did not incur.
STEP FIVE: BOUNDARY VERIFICATION

In this last step, the buyer will purchase a Deed Plan from
the relevant county surveyors office. A Deed Plan is a map
that shows the dimensions of the land, as well as the
various measurements, sizes, and bearings on the land. The
buyer will then hire the services of a surveyor who will
physically visit the location of the land to ascertain that the
demarcation beacons are in the right places and have not
been tampered with.
CONCLUSION
Once all the above steps are undertaken successfully and

the results show that the transaction is clean, the buyer will
have the necessary confidence to proceed with the
transaction. It is always better to take caution rather than
rush into a transaction and later suffer losses. While the

above steps may seem to be petty to many people, in
matters of land,llitCONTACT
ll EVENTS pays to US
be petty.
Share
 Post:
 EARLY TERMINATION OF COMMERCIAL LEASES IN

KENYA: A Legal Analysis
COMMERCIAL ARBITRATION: A Short Introduction 
14 RESPONSES
Boru  Reply
 December 21, 2020 at 6:56 am
Meticulous. Always a pleasure reading your

Articles for all my classes.
Lynda  Reply
 February 16, 2021 at 4:48 am
This is well done and quite informative

BLOC.Kindly do one for sectional properties.
Elvis Abenga  Reply

 February 18, 2021 at 4:32 pm
Dear Lynda,
Many thanks,
We will do so.
Charles  Reply
 November 20, 2021 at 4:10 pm
ll EVENTS llQuite an informative

CONTACT US piece! Explained in
plain English.

saiful  Reply
 March 13, 2021 at 5:07 pm
Dear Sir\Madam,
I am Saiful from Bangladesh.

occupation: I am a Student and freelancer
Can you help me?

 March 30, 2021 at 3:37 pm
Hello
I have sent you an email.
Please check. Kind regards.
saiful  Reply
 March 13, 2021 at 5:14 pm
Can you help me

Please mail me.
1999mdsaiful@gmail.com

 March 30, 2021 at 3:36 pm
Hello, I have sent you an email.
Please check.
PETER  Reply
ll 
EVENTS April 11, 2021USat 6:01 pm
ll CONTACT

Quite educative. gland to have bumped on this
site. Matters land buying is very tricky today.
thanks
Charles  Reply
 November 20, 2021 at 4:10 pm
Quite an informative piece! Explained in plain

English.
Pingback : SECTIONAL PROPERTY: Long- Term Leases. -

Advocates.ke Insights
Mwendwa  Reply
 November 30, 2021 at 5:58 am
Clear article.
Would you mind having links that get readers to

take action in each step as value enhancement to
the great article?
Betty  Reply
 July 6, 2022 at 7:50 am
This is very informative. Next time blog on buying

a property as a foreigner.
LISA NJOROGE  Reply

 August 4, 2022 at 7:48 am
Hello Betty, I trust that you’re well.

Thank you for taking your time to read throu
ll articles,
EVENTS Keep it here US
ll CONTACT to see our next article o
property as a foreigner.

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2/18/23, 10:31 AM Due Diligence Procedures in Land Transactions in Kenya: Five Steps.

ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 

ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 

ll EVENTS ll CONTACT US CLICK TO BOOK AN

 25 OCT 2020  ELVIS ABENGA  ALTERNATIVE DISPUTE

 BLOC STORIES (3)

 CIVIL AND CRIMINAL

 COMMERCIAL LAW AND

Kenya unfortunately has very many fraudsters who purport  INTELLECTUAL

The purpose of this article is to introduce the reader to the

STEP ONE: OFFICIAL SEARCH AT THE LAND REGISTRY

The first step in due diligence is to conduct an official search

1. The name of the registered proprietor/owner of the

2. Any encumbrances over the land such as charges, (

With this information, the prospective buyer of the land

At times the circumstances of the transaction may

STEP TWO: COUNTY REGISTRY SEARCH

The buyer after completing the official search mentioned in

1. Whether or not land rates have been paid and are up to

It is important for the buyer to know whether or not rates

Land is always classified and subdivided into different zones

Conducting a county registry search will aid the buyer to

Should it not conform to its designated use, the buyer will

STEP THREE: REGISTRY OF PERSONS VERIFICATION

This has become a very important step in recent times. Our

It is thus important for the buyer of the land to verify the

STEP FOUR: UTILITY VERIFICATION

Once all the above steps are undertaken successfully and

rush into a transaction and later suffer losses. While the

 EARLY TERMINATION OF COMMERCIAL LEASES IN

Meticulous. Always a pleasure reading your

This is well done and quite informative

Elvis Abenga  Reply

ll EVENTS llQuite an informative

I am Saiful from Bangladesh.

Elvis Abenga  Reply

I have sent you an email.

Please check. Kind regards.

Can you help me

Elvis Abenga  Reply

Hello, I have sent you an email.

Quite an informative piece! Explained in plain

Pingback : SECTIONAL PROPERTY: Long- Term Leases. -

Would you mind having links that get readers to

This is very informative. Next time blog on buying

LISA NJOROGE  Reply

Hello Betty, I trust that you’re well.

Name* Email* Website

Save my name, email, and website in this browser for the

ll HOME ll ABOUT US ll BLOC ACADEMY ll TEAM ll PRACTICE AREAS ll RESOURCES 

About Us Recent Posts Contact Info

BLOCis a law practice that  Elections: Of Party  Bishop's Gardens

Interested in joining us?

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