Almost every property transaction in Nairobi involves a leasehold title, and almost no conversation about one involves the expiry date.
It is printed on the document. It is often decades away, which is exactly why nobody reads it. But leases granted in the colonial and early independence periods — 33, 50, 66 and 99-year terms, many issued between the 1920s and the 1960s — are now reaching the end of their terms across the city.
In June 2025, the National Land Commission published a notice directed at Nairobi City County leaseholders whose leases had expired, or had five years or less remaining, calling on them to apply for extension or renewal.
If you own leasehold property in Nairobi, or are about to buy some, this is the part of the title deed to read first.
Freehold and leasehold, briefly
Freehold is ownership without a time limit.
Leasehold is the right to use and occupy land for a defined term, granted by the government — national or county — as lessor. During the term, the lessee can use, develop, transfer and charge the property, subject to the conditions in the lease. At the end of the term, the interest comes to an end.
Most urban land in Nairobi is leasehold. This is not a defect; it is how the city was laid out, and it gives the government a mechanism to control land use. But it means the property carries a clock, and the clock is a material fact about its value.
Under Article 65 of the Constitution of Kenya, 2010, non-citizens may hold land only on leasehold tenure not exceeding 99 years. Freehold interests held by non-citizens were converted to 99-year leases.
Extension versus renewal
These two words are used loosely in conversation and mean different things in practice.
Extension happens while the lease is still running. You apply before expiry, and if granted, the term is extended without a gap. This is the orderly route.
Renewal is what you are left with if the term has already expired. The property has reverted, and you are applying to be re-allocated something you no longer hold. It is slower, less certain, and weaker as a negotiating position.
The distinction is worth internalising, because everything about your position improves if you act while you still hold the lease.
What the law provides
Section 13 of the Land Act gives Kenyan citizens holding leases from the government a pre-emptive right to re-allocation of the property when the lease expires — provided the land is not required for a public purpose, and provided the proprietor applies in accordance with the process.
That pre-emptive right is the protection. It is not automatic, and it is conditional on applying.
The Act also requires the National Land Commission to notify registered owners five years before expiry. Where an owner does not respond within a year, the Commission may publish the notice in two newspapers of nationwide circulation, with a further period for the owner to respond.
For Kenyan citizens, there is no statutory ceiling on the number of years a lease may be extended by. For non-citizens, and for companies with non-citizen shareholders, the aggregate term cannot exceed 99 years, consistent with the constitutional limit.
How the Nairobi process runs
Following the Commission’s June 2025 notice, applications from Nairobi City County leaseholders are submitted to the NLC — the notice specified submission in triplicate. Applications meeting the prescribed requirements are then forwarded to the County Executive Committee Member responsible for lands at Nairobi City County. The county considers them and, where approved, refers them onward for further processing under the applicable framework.
Two features of that sequence are worth noting.
It involves more than one authority, which means it takes time. And it is application-driven: nothing happens because your lease is running out. Something happens because you applied.
The consequences of doing nothing
If a lease expires without an extension or renewal being obtained, the interest is extinguished and the land reverts to government. In principle it can then be re-allocated — including, potentially, to a different applicant.
Well before that point, a short unexpired term causes practical problems:
- Lenders become cautious. Banks assess the remaining term against the loan period. A short residue narrows your refinancing options and your buyer’s mortgage options, which narrows your pool of buyers.
- Value is affected. A property with a short unexpired term is worth less than the same property with a long one. Valuers price this in.
- Transactions slow down. A buyer’s advocate who sees a short residue will want the renewal position resolved before completion.
What to do
If you already own leasehold property:
- Read the title and note two dates: the commencement of the term and its length. Calculate the unexpired residue. Do this today; it takes five minutes.
- If the residue is under about 25 years, take advice now. Do not wait for the five-year mark. The process involves multiple approvals and can be protracted.
- Keep your obligations current. Land rent, land rates and compliance with the lease conditions all form part of the picture when an application is assessed. Arrears are an avoidable weakness.
- Check the address on the register. Statutory notices are sent to the registered owner. If the address on the register is a decade out of date, the notice will not reach you.
- Watch for conditions attached to approval.** Renewals are sometimes granted subject to conditions, including surrender of a portion of the land for public use. This has been litigated in Kenya, so it is not hypothetical, and it is something to take advice on rather than accept without reading.
If you are buying:
Ask for the unexpired residue in writing and confirm it against an official search. Treat it as a headline term of the deal, alongside price and size. If the residue is short, ask whether an extension application has been lodged, when, and with what supporting documents — and take advice before committing.
The wider point
Leasehold tenure is not a problem to be avoided. It is the normal form of ownership in Nairobi, and a lease with a long residue and clean conditions is a perfectly sound asset.
The problem is inattention. A lease expiry is one of the few risks in property that is entirely predictable, entirely visible on the face of the document, and entirely manageable if addressed early — and one of the most damaging if it is not.
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This article is general information, not legal advice. Anyone dealing with a specific property should take advice from their own advocate.
Sources: Constitution of Kenya, 2010, Article 65; Land Act; Land Registration Act, 2012; National Land Commission public notice, 22 June 2025.