The COVID-19 pandemic ushered in a new era in Kenya which forced different industries across the country to adapt and acclimate to the new normal. The legal sector rose to the challenge by embracing digital transformation to streamline and ease business processes.
We have extensive experience and insight into all aspects of land law and property transactions in Kenya. Whether structuring a complex development project or assisting in the purchase of a new property, our team takes a result-oriented, strategic approach to negotiate, document and complete all aspects of property transactions.
Some of our clients in the real estate market include:
- Real estate developers
- Entrepreneurs
- Owners and tenants of commercial and residential buildings
- Shopping centers and malls
- Hotels
- Schools
- Multiresidential developments
- Mixed-use developments
IKM keeps clients abreast of any developments in the law and guidelines relating to land transactions through its ‘Alert’ service.
Our clients benefit from our significant experience in handling complex, long-term projects that involve drafting documentation, facilitating negotiations, navigating legal and regulatory issues and, when necessary, litigating on their behalf.
Experience has included advising:
- Kipeto Energy Plc on its acquisition and enjoyment of land rights in connection with the 100MW wind power project over an area of approximately 70km2 in Esilanke, Kajiado.
- A leading global manufacturer of consumer products concerning the development of a manufacturing plant in Kenya.
- Flamingo Group International Limited (FGIL), a major supplier of fresh-cut flowers and produce to the UK and continental Europe and Flamingo Horticulture Kenya Limited (FHKL). We advised FHKL on the real estate aspects of the hive-off of its integrated pest management business.
- Norfund and Malthe Winje Infrapower AS by conducting due diligence on a company they were acquiring. The company being acquired is in the process of developing, constructing and operating a hydro-power plant with an installed capacity of approximately 5.6MW.
- An independent power producer, in connection with the development of a 5MW Hydro Power Project.
- East Africa Portland Cement Company, (the seller) in the sale of 900 acres of land.
- KETRACO in the purchase of five adjacent parcels of land totalling 188.07 acres for a power substation project.
- EKE Property Limited (an affiliate of Ecobank Kenya Limited) in the sale of its entire issued share capital where its main asset was a multi-storey office building located in Nairobi’s Central Business District.
- A Fortune 500 energy company in the setting up of a proposed wind energy project in Kajiado County.
- A leading investor in connection with an expansion plan of its integrated mixed-use development comprising a hotel with 250 rooms, a mall and offices, including preparing all agreements relating to project construction retail shop leases and advising on the overall corporate and management structure to ensure the intended mixed-use development is achieved
- Ranked in Real Estate (Chambers & Partners 2018 - 2024)
- Ranked in Real Estate (The Legal 500 2018 - 2024)
While Kenya is blessed with some natural resources, the country has always faced challenges in ensuring that benefits derived from these resources are shared in an equitable manner. Often, the host communities have complained that they are getting the shorter end of the stick.
It is now one year since the implementation of the Finance Act, 2022. Capital Gains Tax (CGT) has since 1 January 2023 been charged at a rate of 15% up from 5%. This may be a timely juncture to assess the overall effect of the increased CGT.
In May 2023, the Senator of Trans Nzoia County, Senator Allan Chesang sponsored the Real Estate Regulation Bill (Bill), which is currently under consideration by Senate. The Bill draws heavily from the Indian Real Estate (Regulation and Development) Act of 2016 (RERA), which regulates India’s real estate and property market. Kenya’s real estate market is estimated by Statista to be worth USD 7.91 Billion is dwarfed in comparison to global giants like India’s USD 265.18 Billion market. While the two countries’ real estate sectors differ significantly in size, they seem to share common concerns: the need for a specialised legal framework to protect real estate consumers.
Inflation rates in Kenya have steadily increased impacting the cost of living. One of the sectors affected is the real estate sector where inflation has resulted in increased construction costs, property values, rent and other operational and maintenance costs such as service charge