Law Implications

Ardhisasa is a digital platform, launched on 27th April 2021 to help streamline the process of buying and selling land in Kenya. The platform seeks to improve land management in Kenya by resolving the numerous historical land problems experienced by Kenyans by providing a centralized, transparent and efficient system for land ownership, transfer and registration. The platform offers services relating to due diligence; land registration of cautions, leases, charges, replacement of title; land administration processes such as payment of land rents, extension and renewal of lease; physical planning activities such as the acquisition of approvals for development; valuation of property; adjudication and settlement; and land allocation by the National Land Commission.

One of the most frustrating things for any landlord is dealing with tenants who persistently default in paying rent when it becomes due. Non-payment or late payment of rent amounts to a breach of contract and the law grants a landlord the right to claim and recover any rent amount that is in arrears. The law provides the following legal remedies a landlord may pursue to recover unpaid rent

In commercial settings, the terms ‘lease’, ‘license’, and ‘tenancy’ have been interpreted and used interchangeably to mean the same thing. However, each of these terms is different, possess unique features and imposes different rights and obligations on the parties involved. It is important to distinguish the terms to be aware of which agreement to or not to bind yourself into in order to guarantee you full rights and protection in cases of disputes.

A listing agreement is a contract between a seller/property owner and a real estate agent. It allows the agent permission to sell property on behalf of a seller on agreed terms and commission. The Types of Listing Real Estate Agency Agreements: Exclusive Listing Agreements and Non-exclusive Listing Agreements.

When the deal is too good, think twice! Information is power, and when it comes to buying property off-plan having the right type of information will help you, a prospective buyer or investor, make an informed decision on whether to invest or not. Buying property off-plan simply refers to purchasing property before construction is commenced or completed. Developers use pre-construction layouts, site developmental plan and building plans to market and sell their properties (apartments, villas, bungalows, townhouses) to prospective home buyers and real estate investors.

The Finance Act No. 22 of 2022 amended the Income Tax Act by increasing the rate of Capital Gain Tax (CGT) from the rate of 5% to 15%, effective from 1st January 2023. What is Capital Gains Tax (CGT)? CGT is a tax imposed on the gains which accrue on transfer of property situated in Kenya, on or after 1st January 2015 whether or not the property was acquired before 1st January 2015. A transfer of...

Introduction Conflicts between tenants and landlords are inevitable. The disagreement many times raises issues that more often than not find themselves before seats of justice. In particular, the tenancies that are not controlled. Where then can such conflicts, if and when they arise, be taken to a court of the first instance? That is the single most important question that this paper will delve right...

The purchase of land or property is major decision and therefore, all aspects that have a financial implication should be properly evaluated. It is important for the buyer to take into consideration all the tax implications in order to avoid instances of incompliance. The purchaser is required to pay stamp duty on the acquisition of a property. The stamp duty is calculated at the rate of 4% of the...

The simplified tax regime on residential rental income was introduced in Kenya with effect from 1st January 2016.It applies to residential rental income ranging from KES 288,000 to KES 15,000,000 per annum. Under this regime, tax is calculated as 10% on gross rent received and is a final tax.The landlord is required to file a monthly return and make payment by 20th day of the following month.The penalty...

The purchase of land or property is capital intensive and tax compliance is vital. Tax implications to the buyer The buyer is required to pay stamp duty on the acquisition of land. The stamp duty is calculated at 4% of the value of land while a 2% applies in instances where the land is located in other areas. Stamp duty is based on the value ascertained by a government valuer. This is done in...