KENYA Law and Practice Contributed by: Anne Kinyanjui and Bonface Abuya, DLA Piper Africa, Kenya (IKM Advocates)
1. General 1.1 Main Sources of Law The main sources of real estate law in Kenya are as follows: • the Constitution of Kenya, 2010 (the “Constitution”) is the supreme law prescribing land rights and poli - cies in Kenya; • the Land Act, Chapter 280 (LA) is the principal stat - ute on the administration and management of land and land-based resources; • the Land Registration Act, Chapter 300 (LRA) gov - erns the registration of interests in public, private and community land; • the Community Land Act, Chapter 287 governs community land; • the National Land Commission Act, Chapter 281 prescribes the functions of the National Land Com - mission (NLC); • the Land Control Act, Chapter 302 (LCA) governs dealings in agricultural land; • the Landlord and Tenant (Hotels, Shops and Cater - ing Establishments) Act, Chapter 301 (LTA) governs controlled tenancies related to business premises; • the Distress for Rent Act (DRA), Chapter 293 relates to distress for rent; • the Physical and Land Use Planning Act, Chapter 303 (the “Physical Planning Act”) governs the plan - ning, use and development of land; • the Sectional Properties Act, Chapter 286 (SPA) governs the registration and management of sec - tional properties; • the Law of Contract Act, Chapter 23 prescribes the formal requirements for contracts related to deal - ings in land; • the National Construction Authority Act, Chap - ter 118 (the “NCA Act”) establishes the National Construction Authority (NCA) and prescribes its functions; • the Environmental and Land Court Act, Chapter 8D establishes the Environment and Land Court (ELC) to hear and determine disputes relating to the envi - ronment and land; • the Environmental Management and Co-ordination Act, Chapter 387 (EMCA) is the framework environ - mental law;
• the Special Economic Zones Act, Chapter 517A (the “SEZ Act”) establishes special economic zones (SEZs); • the Survey Act, Chapter 299 makes provision in relation to surveys and geographical names and the licensing of land surveyors; • the Housing Act, Chapter 117 provides for loans and grants of public monies for the construction of residential dwellings; • the Affordable Housing Act, 2024 establishes a framework for development of affordable housing and institutional housing; • the Climate Change Act, Chapter 387A establishes a regulatory framework for enhanced response to climate change for the purposes of achieving a low-carbon climate development; and • the National Rating Act, 2024 provides a compre - hensive framework for imposition of rates on land Sustainable real estate finance continues to gain trac - tion in Kenya, with notable developments including the following: • publication by the Central Bank of Kenya (CBK) of the Kenya Green Finance Taxonomy (KGFT) and the Climate Risk Disclosure Framework (CRDF) in April 2025, intended to support the classification of environmentally sustainable activities and strength - en climate-related financial disclosures; • establishment in September 2025 by the Kenya Bankers Association of the Centre for Sustainable Finance and Enterprise Development, further sig - nalling increased institutional focus on sustainable finance and ESG-linked lending; • commitment by EIB Global (the European Invest - ment Bank’s development arm) of EUR21.5 million in equity to the IHS Kenya Green Housing Fund to support the construction and acquisition of energy-efficient, green-certified affordable housing in Kenya; and • a significant increase in green financing portfolios of major banks (eg, KCB Bank announced in 2025 that its green loans portfolio constituted 21.32% of its total portfolio, edging closer to its 2025 target of 25%). and buildings by county governments. 1.2 Main Market Trends and Deals Sustainable Real Estate Finance
387 CHAMBERS.COM
Powered by FlippingBook