Global Expertise, with Regional Knowledge 01.07.
2017
NLC Initiated Extension of Lease Foreign Holders of Leasehold Properties
The Guidelines provide that when considering an
application the NLC, National or County
Government may require:
1. in the case of a company, the names of
the directors and their citizenship status
including a search from the Registrar of
Companies showing the shares of each
director;
2. a clearance certificate from the relevant
authority in relation to all land rates and rents;
Nyakio Manga 3. information whether the title to be
Partner, Commercial extended will be subject to any existing
NManga@[Link] encumbrance(s); and
4. proof that the lessee has complied with the
Overview terms of the lease.
On 9 June the Cabinet Secretary for Ministry of The Guidelines then state that the above factors
Lands and Physical Planning in consultation with the ‘may’ apply if the lessee is a non-citizen. It is
National Land Commission (the “NLC”) issued the therefore unclear whether different criteria will be
‘Guidelines for Extension and Renewal of Leases’ established for non Kenyan citizens in addition, the
(the “Guidelines”). The intention is to create a clear Land Laws provide that the NLC will only issue a
process for the renewal or extension of leases. notice to renew to Kenyan citizens.
The Guidelines envision two types of situations: Renewal or Extension of Lease
where the NLC informs the lessee that the lease is
going to expire and confirms whether they want to Rejection of the application to extend or renew a
extend the lease; and where the lease expired lease will be limited to the following two grounds:
without the NLC giving the lessee prior notice. Leaseholder Initiated Renewal of Lease
1. the land is needed for public purpose
The Guidelines provide that if a lease expires without the and is included in the County Spatial Plan;
NLC giving the lessee notice then the lessee is required to or
apply for the renewal of the lease.
2. there is proof that the lessee has not
In contrast to the NLC initiated extension of lease process, complied with the terms and conditions of
applications are received and determined by the NLC alone the existing lease.
and not the National or County Government. The NLC will
however seek the views of various authorities including the The Guidelines provide that an appeal against the
National or County Government in making their decision. If decision of the National or County Government lies
approved by the NLC then the process indicated in the last with an independent appeals committee to be
box of the flow diagram is followed. established by the NLC.
Large Scale Investments Conclusion
The Guidelines provide that if there is a ‘large scale Even though the Guidelines seek to streamline the
development’ on the property then the NLC, National or operations of extension and renewal of leases, the
County Government will need to consider if: extending the time frames for the process are not clearly defined
lease is beneficial to the economy or country as a whole; and at present no application forms exist.
and whether the investment is in line with national Furthermore, limiting a leaseholders’ right to appeal
development goals. may be subject to challenge.
For further advice about any of the information
There is no definition of what type of development
contained here please feel free to contact:
constitutes a ‘large scale development’ hence this provision
Nyakio Manga NManga@[Link]
is unclear.
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