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Regulatory Updates

Stay informed about the latest regulatory changes, compliance requirements, and legal developments affecting real estate investment in Kenya.

Key Regulatory Bodies

Capital Markets Authority

Regulates REITs, securities, and investment products

Kenya Revenue Authority

Oversees tax compliance and property taxation

State Department of Lands

Manages land registration and property rights

Recent Regulatory Updates

REIT Regulations Update

December 2024

CMA has updated REIT regulations to include stricter governance requirements and enhanced disclosure standards for listed property funds.

Effective: January 1, 2025

Foreign Investment Guidelines

November 2024

New guidelines streamline foreign investor access to commercial real estate with simplified approval processes for qualifying investments.

Implementation: Ongoing

Property Tax Reforms

October 2024

KRA introduces progressive property tax rates and incentives for energy-efficient buildings and affordable housing developments.

Effective: July 1, 2025

Compliance Requirements

For Foreign Investors

  • Minimum investment threshold: $250,000
  • Foreign Investment License from State Department of Immigration
  • Tax compliance certificate from KRA
  • Proof of source of funds

For Property Developers

  • Development license from county government
  • Environmental impact assessment for large projects
  • Building plan approval from relevant authorities
  • Compliance with disability access regulations

Tax Considerations

Corporate Tax

30% standard rate with incentives for manufacturing and agriculture

30% Standard Rate

Property Income Tax

Rental income taxed at corporate rates with depreciation allowances

Progressive Rates

Capital Gains Tax

15% on property disposals with indexation for inflation

15% Rate

Upcoming Regulatory Changes

Digital Property Transactions

Implementation of blockchain-based property registration system

Expected: Q2 2025

Green Building Standards

Mandatory energy efficiency ratings for commercial buildings

Expected: Q3 2025

Foreign Ownership Limits

Potential relaxation of foreign ownership restrictions in special zones

Expected: Q4 2025

Stay Compliant

Ensure your investments remain compliant with the latest regulatory requirements. Subscribe for updates on regulatory changes.