Freehold vs Leasehold Land in Kenya: What Every Buyer Must Know

By Team Makao on 05/09/2025

When it comes to buying land in Kenya, one of the most confusing — yet crucial — topics is land tenure. Many first-time buyers jump into deals without understanding whether the land is freehold or leasehold, only to face legal headaches later.

This guide explains the difference, the pros and cons of each, and how you can protect yourself before signing any deal.

What is Freehold Land?

Freehold ownership means you own the land indefinitely. Once you buy, the property becomes yours and can be passed down to future generations. There is no time limit on ownership.

Advantages of Freehold Land

Security of ownership – you have permanent rights.
Inheritance-friendly – property can stay in the family for generations.
More control – fewer restrictions on land use compared to leasehold.

What is Leasehold Land?

Leasehold ownership means you buy the rights to use land for a specific period — usually 33, 50, or 99 years. The land is technically owned by the government, county, or another entity, and you are a "tenant" during that time.

Advantages of Leasehold Land

Often available in prime urban areas like Nairobi, Mombasa, and Kisumu.
Sometimes cheaper upfront, since you are not buying full ownership.
Attractive for business investors looking for strategic locations.

Key Differences Between Freehold and Leasehold

Factor	Freehold Land	Leasehold Land
Ownership Duration	Permanent, no time limit	Fixed period (33, 50, 99 years)
Inheritance	Can be passed down indefinitely	Lease must be renewed to retain rights
Restrictions	Minimal	Subject to government or lessor conditions
Cost	Usually more expensive upfront	Sometimes cheaper initially, but renewal costs

Common Myths About Land Tenure in Kenya

❌ "Leasehold means you don't own the land."
✔️ You do own it — but only for the agreed period.

❌ "Freehold land is always better."
✔️ Not necessarily. Leasehold land can be valuable if it's in a high-demand urban location.

❌ "All land in cities is freehold."
✔️ Most urban land is actually leasehold.

Risks to Watch Out For

Expired leases – Always check how many years remain. Buying land with only 5 years left on the lease could be risky.
Government repossession – If the lease isn't renewed in time, the government can take back the land.
Hidden restrictions – Some leasehold titles come with usage limits (e.g., residential only, not commercial).

How to Verify Land Tenure in Kenya

Conduct a land search at the Ministry of Lands through the eCitizen portal.
Work with a licensed lawyer to confirm the title deed's status.
Ensure you understand the remaining lease period and renewal process before committing.

Conclusion

Whether you're buying freehold or leasehold land, the most important thing is to do proper due diligence. Each option has its advantages, but understanding the differences will help you make an informed decision.

At Makaobora.com, we are committed to providing trusted property insights and verified listings to guide your investment journey.