Sending Money for Land Purchase in Kenya: Diaspora Buyer's Guide

Buying land in Kenya from abroad requires careful planning—both to get the best transfer rates and to protect yourself from common scams. This guide covers both.

The Land Buying Process in Kenya

Typical Steps

1. Find land (through agent, family, or directly)
2. Verify ownership (title search at lands office)
3. Negotiate price
4. Sign sale agreement (with lawyer)
5. Pay deposit (usually 10%)
6. Complete due diligence
7. Pay balance
8. Transfer title

Typical Costs

Best Ways to Send Money for Land

For Amounts Under $10,000

Wise or Remitly:

• Send to family member's M-Pesa or bank
• They hold until payment due
• Lower fees than bank wire

For Amounts $10,000-$50,000

Wise or OFX:

• Send to lawyer's trust account
• Or to your own Kenyan account
• Never directly to seller before title transfer

For Amounts Over $50,000

OFX or Bank Wire:

• Custom rates from OFX
• Bank wire for very large amounts
• Consider multiple transfers

Transfer Cost Comparison: KES 5 Million (~$40,000)

Using OFX or Wise saves you $1,200+ on a $40,000 land purchase.

Protecting Your Investment

Before Sending Any Money

1. Verify the title deed:

- Visit lands office (or hire lawyer to do it)

- Confirm seller is listed owner

- Check for encumbrances (loans, disputes)

1. Hire a lawyer:

- Use established firm, not seller's suggestion

- They handle due diligence

- Protect your interests

1. Conduct land search:

- Physical verification

- Survey matches documents

- No boundary disputes

Red Flags

• Seller rushing the transaction
• Below-market prices
• Can't produce original title
• Reluctant to use lawyer
• Wants cash only
• Multiple people claiming ownership

Payment Structure Recommendations

Safe Payment Schedule

1. Deposit (10%): After signing sale agreement

- Hold in lawyer's account

- Refundable if due diligence fails

1. Balance (90%): Only after:

- Title search complete

- All documents verified

- At title transfer meeting

Never Do This

• Pay full amount upfront
• Send money directly to unknown seller
• Skip the lawyer to "save money"
• Rush because of "other buyers"

Setting Up Payment

Option 1: Through Lawyer's Trust Account

How It Works:

1. Lawyer opens trust account for transaction
2. You wire money to trust account
3. Lawyer releases funds at completion

Best For: Maximum security

Option 2: Your Own Kenya Account

How It Works:

1. Open Kenya bank account (may require visit)
2. Transfer money to your account
3. Pay from your account at completion

Best For: Multiple transactions, ongoing investments

Option 3: Family Intermediary

How It Works:

1. Send to trusted family member
2. They attend transaction in person
3. Pay at title transfer

Best For: When you have trustworthy family on ground

Step-by-Step: Sending $30,000 for Land

1. Set Up OFX Account (best rates for this amount)
2. Complete Verification (may need source of funds docs)
3. Get Lawyer's Trust Account Details
4. Lock Exchange Rate (if favorable)
5. Initiate Transfer
6. Confirm Arrival with lawyer
7. Proceed with Transaction

Documentation to Keep

For this major transaction, keep:

• Sale agreement
• All transfer receipts
• Exchange rates used
• Title deed copy
• Land search results
• Lawyer communications
• Photos of land

Tax Implications

In Kenya

• Stamp duty: 4% of land value
• Capital gains tax: 15% when selling later
• No tax on purchase itself

In Your Country

• May need to report large transfers
• No immediate tax on purchase
• Keep records for future sale

If Things Go Wrong

Scam Suspected

1. Stop all payments immediately
2. Contact your lawyer
3. Report to DCI (Kenya police)
4. Document everything

Dispute After Payment

1. Work through lawyer
2. Land disputes court (if needed)
3. Original documents crucial

Frequently Asked Questions

Can I buy land in Kenya as non-citizen?

Yes, but:

• Leasehold only (99 years max)
• Not freehold
• Same due diligence applies

Do I need to be in Kenya for purchase?

No, but recommended for:

• First purchase
• Large investments
• Unfamiliar areas

You can use power of attorney for someone trustworthy.

How do I verify land is legitimate?

1. Physical visit (you or representative)
2. Title search at lands ministry
3. Verify seller identity
4. Check for disputes with neighbors
5. Survey verification

Conclusion

Buying land in Kenya from abroad:

1. Never rush — legitimate deals don't disappear overnight
2. Always use lawyer — cheap compared to losing everything
3. Verify thoroughly — title search is essential
4. Use OFX or Wise — save thousands on large transfers
5. Pay through trust account — maximum protection

Land in Kenya can be an excellent investment, but only with proper due diligence.

Compare rates for large transfers with our calculator.