Real Estate 2024

KENYA

Ethiopia

Somalia

Uganda

Kenya

Law and Practice Contributed by: Anne Kinyanjui and Loice Erambo DLA Piper Africa, Kenya (IKM)

Nairobi

Tanzania

Contents 1. General p.503 1.1 Main Sources of Law p.503 1.2 Main Market Trends and Deals p.504

1.3 Proposals for Reform p.505 2. Sale and Purchase p.506 2.1 Categories of Property Rights p.506 2.2 Laws Applicable to Transfer of Title p.506 2.3 Effecting Lawful and Proper Transfer of Title p.506 2.4 Real Estate Due Diligence p.507 2.5 Typical Representations and Warranties p.507 2.6 Important Areas of Law for Investors p.508 2.7 Soil Pollution or Environmental Contamination p.508

2.8 Permitted Uses of Real Estate Under Zoning or Planning Law p.508 2.9 Condemnation, Expropriation or Compulsory Purchase p.508 2.10 Taxes Applicable to a Transaction p.509 2.11 Legal Restrictions on Foreign Investors p.510 3. Real Estate Finance p.510 3.1 Financing Acquisitions of Commercial Real Estate p.510 3.2 Typical Security Created by Commercial Investors p.510 3.3 Restrictions on Granting Security Over Real Estate to Foreign Lenders p.511 3.4 Taxes or Fees Relating to the Granting and Enforcement of Security p.511 3.5 Legal Requirements Before an Entity Can Give Valid Security p.511 3.6 Formalities When a Borrower Is in Default p.511 3.7 Subordinating Existing Debt to Newly Created Debt p.512

3.8 Lenders’ Liability Under Environmental Laws p.512 3.9 Effects of a Borrower Becoming Insolvent p.512 3.10 Taxes on Loans p.512

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