Is it really difficult to purchase property in Kenya?

Buying property in Kenya has been accustomed to many myths and assumptions. As it is the case with many African countries, a good share of foreign investors looking to invest in real estate in Kenya has their own doubts. The process of buying property in Kenya cannot be said to be one of the easiest yet based on the opportunities at stake, it is worth the go. So what can you expect should you decide to venture in the Kenyan property market?

Foreigners looking for investment opportunities abroad can buy ‘commercial class’ land in Kenya for income or revenue-making purposes. According to local land laws, Foreigners are allowed to acquire this and build on it.  However Agricultural land or farm lands cannot be acquired by foreign individuals. ‘Agricultural land’ is usually owned by indigenous people. If purchase is made through a company – the majority of which must be Kenyan-owned – then it is allowed. The land will be bought under the company’s name.

luxury apartment in Nairobi

There are freehold and leasehold types of land. Mostly, land in Kenya is government-owned. This can be leased for 50 to 99 years. The first step to purchasing property in Kenya is to hire a real estate lawyer. A title search on the property is very important as many areas are not registered. Once property has been chosen and a price is agreed upon, the lawyer prepares a sale agreement as a conditional preliminary contract, signed by both parties. Upon execution, the buyer pays a deposit of 10% to 30% of the purchase price, which is usually refundable if the seller defaults on the transaction.

 

luxurious villa in the Kenyan coast

Closing is usually within 90 days from signing. During this time, the seller must obtain a clearance certificate from the municipality. This is presented to the buyer to ensure that all local taxes and utility bills have been settled. The lawyer then files a Draft Transfer at the Lands Office and the stamp duty is paid. An official from the Ministry of Lands will come to inspect the property, verify its condition, and make sure that the sale price is in accordance with its actual value. These steps will take approximately two to four weeks to complete.

The lawyer submits the documents to the Lands Office to be able to register the transfer, including the original title held by the seller, clearance certificates, consent transfer and the form for valuation for stamp duty. At the same time, the buyer settles the remaining balance with the vendor. Taxes and lawyer fees is paid within 30 days from closing.

It is possible to purchase in Kenya without being in the country. One can assign a lawyer to go through the whole process on the buyer’s behalf through a power of attorney. please visit www.buypropertykenya.com

Reference: globalpropertyguide.com

Garden City Mall ground breaking opens more investment opportunities in Kenya real estate

Garden City Mall ground breaking opens more investment opportunities in Kenya real estate

The ground breaking of the largest shopping complex, Garden City Mall, in a month`s time will indeed bring a new dawn in the opening of more investment opportunities in Kenya real estate. The Mall, which is located along Thika Superhighway,  includes 3.4 acres of serviced land for sale, 50,000 square meters retail space to let and 421 residential units for sale.

The project has already received regulatory approval from the city council of Nairobi and the National Environmental Management Authrority (Nema). According to a statement from the major financier of the project, Actis East Africa, about 40% of the shop space in the Mall has been booked in pre-let agreements.

The managing director of the company also confirmed that all the necessary equipments required for the project are on-site and the ground breaking will start towards the end of this month. The construction of the Mall, which is scheduled for completion and official opening on November 2014, is expected to habor up to 120 international and local retail brands, providing a promising investment opportunity for people who want to buy property in Kenya.

Actis East Africa`s managing director, Michael Turner, also said that the Mall  will be divided into separate operating spaces that will be sold separately but each will hold interest in the central management entity in the development.

Investing in Kenya has indeed shown potential for real estate property investors, and there is no doubt that the plan by Nairobi Securities Exchange (NSE) for Real Estate Investment Trust (REILs) listing will attract a large number of investors in projects that require a lot of money-like the Garden City Mall. And that means solving major financial problems of funding such mega projects.

For more information on the 70% space leased out bey Garden City, click here.

Bomas of Kenya seeks US$2.4m for amusement park in Nairobi

Summary: The proposed amusement park would feature roller coasters, children playgrounds, a continuos film in a “futuristic theatre”, fun fair with ferries wheel, dodgems, mechanical games and a massive swimming pool with gigantic slides that should accommodate several hundred people. The park is expected to attract local and foreign visitors. The project is likely to be profitable, as there are few such facilities in the country.

Cost of investment: Estimated at US$2.4-million.


Company profile
Established in 1972, the Bomas of Kenya is set on an 83 acres in Langata, Nairobi. Its principal economic activity is to showcase cultural entertainment and display traditional arts to both local and foreign tourists. Existing facilities include a bar, restaurant and an auditorium. The company derives 60% of its revenue from visitors who are interested in cultural dances. The plan is to expand and optimise the use of existing facilities, and to develop new facilities.

For further information on this opportunity contact Pius Rotich, manager, Investment promotion at the Kenya Investment Authority.

$7bn Konza City the latest in a slew of mega-scale Kenyan projects

Over the past decade, Kenya has unveiled an array of infrastructure projects and in October the East African country will commission the first super highway built by Chinese companies at a cost of $350-million.

The Nairobi–Thika super highway, a 50 km 12-lane project, seemed far-fetched when the Kenya government contracted three Chinese contractors to construct it five years ago. But its completion has left many Kenyans marvelling from not only its design but also the impact it is having in terms of connecting the country’s capital, Nairobi, with the economically rich eastern part of the country.

Other mega projects have since been unveiled. Two of them, the $24.6-billion Lamu Port–South Sudan–Ethiopia Transport (Lapsset) corridor project and the $1.2-billion 280 MW geothermal power projects, are the largest infrastructure projects of their kind ever undertaken in Africa.

Despite the enormity of the two projects and the resources required to actualise them, Kenya has not shied away from conceptualising other projects that just a decade ago would have seemed far- fetched.

One such project is the Konza Technology City. Dubbed the Silicon Valley of Kenya or the African Silicon Savannah, the $7- billion project seeks to put Kenya on the global map in as far as developing futuristic cities is concerned.

“Konza Techno City is a strategic opportunity for Kenya to spur the growth of economic activities that fuel higher- value employment generation and growth. This is one of the key Vision 2030 flagship projects,” Information and Communications permanent secretary Bitange Ndemo tells Engineering News in an interview.

He adds that the project aims to trans- form Kenya into a knowledge-based economy that can compete with countries like India, particularly in terms of business process outsourcing (BPOs).

The project is part of East Africa’s leading economy’s push to create special economic zones (SEZs), which will be central in enabling Kenya to attain middle-economy status by 2030.

Earlier this month, Kenya organised an investors conference whose aim was to showcase the investment opportunities in the gigantic project to both foreign and local investors.

The conference came soon after government had awarded the contract to manage and develop the project to US firm HR & A Advisors, an industry- leading real estate, economic develop- ment and energy efficiency consulting firm that shrugged off competition from the likes of AECOM International Devel- opment, of Finland; Sweden’s Sweco International; Dohwa Consulting Engin- eers, of South Korea; and the US’s SHoP Architects.

During the conference, potential investors got a feel of what exactly Konzo Techno City will be. Sitting on a 5 000 acre piece of land some 50 km from Kenya’s capital, Nairobi, the city is expected to be a technology and knowledge hub that will also encompass economic activities like finance, commerce, tourism and conferencing, and real estate, besides others.

Konza Techno City will be akin to Egypt’s Smart Village or Mauritius’ Ebene Cyber City.

“This project will be critical in trans- forming Kenya into a knowledge-based economy able to produce high-quality jobs for Kenyans,” says Kenya Vision 2030 Delivery Board director-general Mugo Kibati.

Already government has secured the land where the project will be built in four phases over the next 18 years.

The first phase involves the building of BPO/information technology-enabled services (BPO/ITES) facilities, commer- cial office space and hotels, residential properties and large-scale shopping malls. There will also be recreation and entertainment venues, a film and media centre, a financial district, a university, a research and convention centre, information and communication technology infrastructure – including fibre-optic networks – transportation infrastructure and a hospital.

Phase 2 to Phase 4 will entail the con- struction of BPO/ ITES parks and commercial and residential buildings, besides others.

Earlier this month, Kenya organised an investors conference whose aim was to showcase the investment opportunities in the gigantic project to both foreign and local investors.

The conference came soon after government had awarded the contract to manage and develop the project to US firm HR & A Advisors, an industry- leading real estate, economic develop- ment and energy efficiency consulting firm that shrugged off competition from the likes of AECOM International Devel- opment, of Finland; Sweden’s Sweco International; Dohwa Consulting Engin- eers, of South Korea; and the US’s SHoP Architects.

During the conference, potential investors got a feel of what exactly Konzo Techno City will be. Sitting on a 5 000 acre piece of land some 50 km from Kenya’s capital, Nairobi, the city is expected to be a technology and knowledge hub that will also encompass economic activities like finance, commerce, tourism and conferencing, and real estate, besides others.

Konza Techno City will be akin to Egypt’s Smart Village or Mauritius’ Ebene Cyber City.

“This project will be critical in trans- forming Kenya into a knowledge-based economy able to produce high-quality jobs for Kenyans,” says Kenya Vision 2030 Delivery Board director-general Mugo Kibati.

Already government has secured the land where the project will be built in four phases over the next 18 years.

The first phase involves the building of BPO/information technology-enabled services (BPO/ITES) facilities, commer- cial office space and hotels, residential properties and large-scale shopping malls. There will also be recreation and entertainment venues, a film and media centre, a financial district, a university, a research and convention centre, information and communication technology infrastructure – including fibre-optic networks – transportation infrastructure and a hospital.

Phase 2 to Phase 4 will entail the con- struction of BPO/ ITES parks and commercial and residential buildings, besides others.

Earlier this month, Kenya organised an investors conference whose aim was to showcase the investment opportunities in the gigantic project to both foreign and local investors.

The conference came soon after government had awarded the contract to manage and develop the project to US firm HR & A Advisors, an industry- leading real estate, economic develop- ment and energy efficiency consulting firm that shrugged off competition from the likes of AECOM International Devel- opment, of Finland; Sweden’s Sweco International; Dohwa Consulting Engin- eers, of South Korea; and the US’s SHoP Architects.

During the conference, potential investors got a feel of what exactly Konzo Techno City will be. Sitting on a 5 000 acre piece of land some 50 km from Kenya’s capital, Nairobi, the city is expected to be a technology and knowledge hub that will also encompass economic activities like finance, commerce, tourism and conferencing, and real estate, besides others.

Konza Techno City will be akin to Egypt’s Smart Village or Mauritius’ Ebene Cyber City.

“This project will be critical in trans- forming Kenya into a knowledge-based economy able to produce high-quality jobs for Kenyans,” says Kenya Vision 2030 Delivery Board director-general Mugo Kibati.

Already government has secured the land where the project will be built in four phases over the next 18 years.

The first phase involves the building of BPO/information technology-enabled services (BPO/ITES) facilities, commer- cial office space and hotels, residential properties and large-scale shopping malls. There will also be recreation and entertainment venues, a film and media centre, a financial district, a university, a research and convention centre, information and communication technology infrastructure – including fibre-optic networks – transportation infrastructure and a hospital.

Phase 2 to Phase 4 will entail the con- struction of BPO/ ITES parks and commercial and residential buildings, besides others.

Jubilee Holdings posts Sh740m first half profit

NAIROBI, Kenya, Aug 22 – Jubilee Holdings has announced a 19 percent increase in its after-tax profit for the first half of 2012 to Sh740 million up from Sh623 million in the same period last year.

Profit before tax went up to Sh928 million from Sh781 million in 2011.

Gross revenue increased by 33 percent to Sh10.6 billion from Sh8 billion recorded in the same period last year.

Jubilee Holdings Chairman Nizar Juma said the improved performance was due to strategies implemented to improve operating efficiency, focus on risk management and an innovative product development drive.

“As we celebrate our 75th anniversary we are delighted to report that Jubilee remains the largest insurer in Kenya, Uganda and Tanzania. Jubilee’s asset base has grown from Sh38 billion to Sh43 billion in the first half of 2012,” Juma said.

Juma said following the performance the shareholders will receive a dividend of Sh5.50 per share.

Group profit after tax attributable to shareholders grew by 17.3 percent to Sh666.1 million in the first half of 2012 from Sh568 million recorded in the same period in 2011.

Investment income recorded a 47 percent growth to Sh1.442 billion in the first half of 2012.

Revenue from short term business grew by 37 percent in the first half of the year to Sh8.059 billion from Sh5.896 billion in 2011.

Jubilee, which has been in the Kenyan market for the last five years, has a 32 percent market.

The group has its footprints in Uganda, Tanzania, Kenya, Burundi and Mauritius.....

Real estate investment trust almost ready

NAIROBI, Kenya, Aug 1 – The Capital Markets Authority (CMA) is in the final stages of finalizing regulation in its real estate investment trust (REITs) product which it hopes will help address the housing deficit in the country.

CMA Chairman Kung’u Gatabaki said he hopes the new product will be up and running by the end of the year to spur more housing development by empowering small investment groups to participate more actively in the property market.

“REITs is a new product in the market, but what we are trying to do is make it local and domesticated so it will have the developmental and construction phase which is missing in other countries where it is operating,” he explained.

Gatabaki added that the Authority will be looking to involve the county development and investment agencies in participating in the REITs as government devolves.

“We would like to make sure that housing is a product that is distributed within the counties. If we can structure investments in REITS at the county level through agencies that can make sure they invest in the product that is what we are trying to do,” he said.

REITs that facilitate collective investment in real estate, would give small investor groups, keen on entering the property market, assurance of secure investment under the regulatory framework.

Often property transactions done informally are riddled with structural and market risks that are not known to investors.

In the draft framework, the REITs are categorized as either development REITs that requires a Sh100 million initial asset to invest into the development and construction of property by professional investors.

The other being investment REITS requires Sh300 million initial asset to be invested in income generating real estate that can be listed on the capital markets.

With investment REITs, the Trustee managing the property will be required to pay out 80 percent of the net income to investors.

The ongoing stakeholder sessions are being held in collaboration with the International Securities Consultants of Australia that are helping to guide the drafting process.

The future of commercial property development in kenya with county governments

commercial property Kenya

The Geographical look of Kenya over the next 12 months is expected to change considerably. The devolution of power has also meant a devolution of resources and that is expected to impact the commercial property development sector in the country. There is a comprehensive change of focus from Nairobi (the center of commercial property developmenet) to other counties in the country. The investmnet opportunities presented by devolution for commercial property developments are huge. Developers are looking to tap on the relatively less developed counties potentials for growth. The devolution will constitute a mass movemnet of human work-force to relevant counties. This is where the money is, such counties will need malls, homes and warehouses. for many developers this is a very good opportunity if approached in the right angle. nonetheless, it does look like a change in opportunities with the bulk of commercial property moving out of the main city to other poetnatial areas. with all said and done, Nairobi will also remain a very strong part in development of commercial property in the coming yaers.