Overview
Most people know that the Nairobi suburb of Karen is named after a Danish author. Fewer know that the Kenyatta International Conference Centre — the building on Kenya’s 100-shilling banknote — was co-designed by a Norwegian architect and a Kenyan chief architect. Fewer still know that Danish wind turbines currently generate around 14% of Kenya’s electricity, or that over 140 Nordic companies operate from Nairobi today. The Nordic-Kenyan relationship is one of the longest, deepest, and most commercially active bilateral partnerships on the African continent — and DEMAR sits inside that history.
We are not the first Nordic company to build in Kenya. We are simply the first to build homes — and we built the foreign-buyer process around the standards a buyer already knows from Copenhagen, Dubai, London, or Zurich: licensed escrow, IFC EDGE-audited construction, named legal counsel, transparent documentation.
This page covers the questions that come up in the first conversation we have with a non-citizen buyer. None of it is legal advice; all of it should be read alongside Otieno & Patel Advocates LLP, our SPV counsel, who guide each transaction from PIN to title.
Can a non-citizen own real estate in Kenya?
Yes. Non-citizens own land in Kenya on a 99-year leasehold with renewal rights — the standard tenure available to foreign buyers since the 2010 Constitution. Title is registered in the Land Registry under the buyer’s name. There is no restriction on apartment ownership in a multi-occupancy premium scheme.
What is required at reservation?
Passport copy, proof of address (utility bill or bank statement), source-of-funds confirmation (the firm’s KYC level is calibrated to international AML standards), and signed reservation agreement. The 10% reservation deposit is wired to Stanmore Trust Kenya Limited’s trustee account; not to DEMAR’s operating account.
PIN and KRA
A Personal Identification Number from the Kenya Revenue Authority is required for the title transfer. Diaspora and foreign buyers without a Kenyan ID can apply with their passport; Otieno & Patel Advocates LLP handle the application. The PIN typically issues within ten to fifteen business days.
Stamp duty and transfer costs
Stamp duty on residential property in Nairobi is 4% of the transfer value (rural transfers attract 2%). Legal fees are paid by the buyer (typically 1% on the consideration up to a cap). DEMAR does not pass any of these costs through; they are paid directly to the registry and to the buyer’s advocate.
Tax on rental income
Rental income from Kenyan property is taxed under the Residential Rental Income Tax regime at 7.5% on gross rents up to KES 15M per annum (above which the standard PAYE bands apply). KRA filings are monthly. Westgate Living Management, our named property manager, files on owners’ behalf.
Capital gains and exit
Capital gains tax on Kenyan property disposal is 15% on the realised gain. Sale proceeds are repatriable in USD, GBP or EUR through the Central Bank of Kenya. There is no exchange-control restriction on the principal of an investment-grade residential transaction conducted through a licensed legal channel.