Kenya has one of the most fertile lands in the larger East African region and the lands are suitable for agriculture and numerous other forms of investment like commercial investment, rental units and even hotel business. As such it is only natural that investors are bound to scramble for the limited resource that is lands in Kenya.
Thus, lands in Kenya have become a target for fraudsters to con innocent victims seeking to invest their hard earned money in this precious commodity. This has proved to be quite an enormous challenge for all the real estate stakeholders because this tendency tends to scare away investors and in turn make selling land quite a herculean task. This has a direct impact on the general economy of the Country since the Kenya real estate sector is currently one of the key sectors driving the economy of this nation.
Insufficient infrastructure i.e. lack of enough roads and communication networks is another challenge facing the process of selling land in Kenya and the real estate industry in general. Though there have been tremendous improvement in the development of infrastructure over the years, there is still a lot to be desired as most roads all over the Country are yet to be tarmacked. Communication signals are still poor even in some of the major towns in Kenya. Infrastructural development is key to success of any business venture and to the growth of the economy in general.
Corruption is the biggest hindrance to the growth of African states. The leaders all want to benefit themselves personally as opposed to serving the people. There is no exception in the ministry of lands. Massive land grabbing and illegal allocation of land remains the order of the day. Thus a plot legally belonging to an individual is unlawfully allocated to the highest bidder. This results to people losing faith in lands as a form of investment. People also get quite wary and skeptical when buying land.
The process of buying lands in Kenya can be very long and tedious as there are several procedures to be done like conducting land search, signing saleagreements and changing of the title deed to your name. Though all these are to ensure that the transaction is actually legit, it still remains one of the hardest tasks for those seeking to buy land.
There are two main types of land tenure systems in Kenya; the freehold tenure and the leasehold tenure. Whereas the freehold tenure usually allows an individual to do whatever he chooses to do with the land once he has completed payment, this is not the case with leasehold tenure system. Under this form, the government usually leases out a piece of plot for a maximum period of 99 years and most of the time, they tend to dictate what can and what cannot be done on the given piece of land. This proves to be a major setback for investors looking to buy lands in Kenya because it limits their ability to try out different ventures.