Buying land as you have probably heard from many people is one of the go to investment especially here in Kenya. If you are keen when using the Thika-Super Highway, you will notice a lot of bill boards advertising land and property. With all this going around, I am sure most of you are aching to buy land as soon as you get the funds to do so.
However, buying land is not like buying potatoes (please forgive me for the blunt choice of words). But in a country where most of us look to secure our future by purchasing property, I think it is careless how some of us are buying land. For this article I am going to take you through the deeps and shallows of everything you need to know before spending a single shilling on that ‘kashamba’.
Below are the 5-W of buying land
1. Why Buy Land
This is one of the most important questions that I think many people need to answer themselves. From a personal point of view please ask yourself why do you need to buy that piece of land. This will simplify other things like the location and the type of land you buy as it provides a motive for you action.
Some of the reasons that people buy land are:
- For investments purposes
- For price speculation and capital gains
- For business purposes
- For children inheritance
- For agricultural reasons
2. Where am I Buying?
Once you answer the question of why you are seeking to buy the land you need to ask yourself where are you buying the land. This is about the location that you hope to own land in. So for instance, if you want to buy land for agricultural production then there are some areas such as Kamakis, Karen etc., that you can’t consider to buy as these areas are residential areas.
Another important reason to ask yourself where you are buying land in is to avoid getting dupped by ‘con-persons’. Mojority who advertise their pieces in a one location but end up selling to you land in another location. This is mostly common with land-buyers from diaspora who might not be there physically to make the purchase.
A great example is the infamous Malindi plots that were sold at 50,000 and countless people were marketed to as though they were buying beach front plots. Only for them to find their parcels in very remote and inaccessible areas of Malindi.
Still on the same question of where, I think it beats all logic going to buy a piece of land that is over 500Km from where you live. The maintenance cost alone, travelling and fencing etc., will surpass the initial value and you may end up not getting to utilize the piece of land.
3. What Type of Land am i buying?
Another important factor to consider is the type of land that you are buying. The type of land you buy will be guided by what you intend to do with the plot. If you want to purchase land for agricultural use you may consider buying land in areas which are zoned for agriculture.
Each and every piece of land in Kenya is zoned for specific use according to the planning agencies involved. By knowing the land use of your intended piece of land you are likely to make a great decision in buying.
Moreover, this can save you several hundereds of thousands in what we call change of use. A client of ours once purchased land in an area zoned for agriculture. Their intention was to put up rentals, by not knowing this beforehand, it cost them another ksh. 200,000 to change its use to residential.
4. Whom Am i buying land from?
Once you are done with the Why, Where and What of land buying, you should then ask about who you are buying the land from. This now focuses on the entity (which can be a company or an individual) that owns the land and is acting as the seller.
We are all too familiar with massive land fraud cases that have be-fallen some of Kenyans. Many people have lost millions to rouge and imposter land dealers. This is why you need to get the WHO question right. This may determine whether you get to enjoy the fruits of your labor or spend the next 10+ years in a judicial war with some notorious land crook.
It is very simple, DON’T buy land from persons or companies that have had a history of unresolved cases. Chances are you might be the next victim. Also look for directors of previous firms that have conned people in the past and have now rebranded themselves.
I also strongly suggest that you buy land with Title deeds but more on this later.
5. When am i buying land?
Lastly, you want to answer the question of when you are buying land. This is about timing and real estate like all other markets has its ups and downs. For instance, if the economic situation is uncertain such as a new government coming into power or the government policies are unfavorable in-terms of taxation, you may postpone buying land until you get a green light.
If you buy at a good economic time it makes the process very much easy. And should you want to dispose of the land you are sure that you will find buyers very easily. The vice versa is also true and you risk your cash getting stagnated in the piece of land.
Summary
| Question | Key Points to Consider |
| Why buy land? | Define your purpose before buying. Could be for investment, speculation & capital gains, business, children’s inheritance, or agriculture. |
| Where am I buying? | Location matters. Match it with your purpose (agriculture vs. residential). Avoid scams (e.g., Malindi plots), and don’t buy too far (500+ km) from where you live due to high maintenance. |
| What type of land am I buying? | Ensure the land use fits your intention (residential, agricultural, commercial, or industrial). Confirm zoning and planning approvals. |
| Who am I buying land from? | Verify seller legitimacy. Check ownership, avoid dealers with fraud history, and prioritize land with a Title Deed. |
| When am I buying land? | Timing is key. Buy during favorable economic conditions or policy environments to ensure easier resale and value growth. |
Frequently Asked Questions
1. What are the benefits of buying land in Kenya?
Buying land when done correctly can lead to huge capital gains overtime or if you decide to develop it, you stand to cash in on the investment.
Location is the most important factor, next ask yourself what do you plan to do with the land and also check the price.
Land is the best asset because of its tangible nature. Unlike stocks and other paper investments, you get to see where your money is going. It is also very safe from economic downturns and inflation.
Any land in a city is always prime. However, due to the high cost the best place I would advise anyone to buy are the suburbs. For instance, in Nairobi places like Ruiru, Utawala, Juja and the likes.
Legal fees range between 1-2% of your land’s value.
You can either compare it to a recent sale in your area of the same size of land which we call price benchmarking or you can get a qualified valuer to value the land for you.
When done rightly, investing in land can unlock massive fortunes. However, it is a long game rather than a get rich quick scheme.
Depending on your jurisdiction, land rates are payable on both freehold and leasehold property.
