Guidelines for Extension and Renewal of Leases in Kenya

1. Extension of Lease
A Lessee can apply for an extension at any time before the expiry of a Lease. The Application is made to the National Land Commission through the office of the Commission in the respective County by submitting the Form LA22.

The Application may only be made before expiry of the Lease. Once approved, such extension will take effect on the last day of the unexpired term. Accordingly, if a lease expires on 31st December 2023, then the extension of the lease will come into effect on 31st December 2023 for a further term of 99years or such term as may be approved for the extension.

The applicant should attach the following documents to the application for extension of Lease:

1. copy of the Identification Card/Passport or Certificate of incorporation (in case of a company (We presume of the registered owner of the lease) 
2. letters of administration and confirmation of grant where applicable 
3. current official search (obtained at least within one month) 
4. passport size photograph (We presume of the registered owner) 
5. in the case of a company, the names of the directors and their citizenship status including a search from the Registrar of Companies showing the shares of each director 
6. clearance certificate from the relevant authority in relation to all land rates and rents 
7. information whether the title to be extended will be subject to any existing encumbrance(s), and 
8. proof that the lessee has complied with the terms and conditions of the existing lease. 

Upon receipt of the application, the Commission shall within seven [7] days forward it to either the representative of the Cabinet Secretary or the County Executive Committee Member for lands, if the land is vested in the National Government or County Government respectively, for approval.

The National or County Government shall before the approval of extension of the lease, seek representations from the County Executive Committee Member responsible for land, the County Government Surveyor, the County Government Physical Planner, the Land Administration Officer of the Commission and any other relevant authority. 

 

After the representations, the application for extension of the lease may be: 

1. Approved for a specified term, or 
2. Declined, and the reasons given within 90 days from the date of the application for extension. Such reasons shall be limited to land being allocated for a “Public Purpose” or proof that the lessee has not complied with the terms and conditions of the existing lease. 

The Land Act has a very broad description of what “public purpose” entails. It includes transportation, such as roads, railway, airports; public buildings, such as schools, factories, public housing; public utilities for water, sewerage, electricity, dams; public parks; sports facilities; cemeteries; security and defense installations; settlement of squatters; poor and landless; internally displaced persons; and any other purpose similar to those mentioned above. 

 

In instances where the land is required for a public purpose, the National Land Commission must satisfy themselves that the land is already included in the County or National Spatial Plans or must justify the need to use the land for a public purpose. The Rules do not provide a mechanism for determining whether a justification is acceptable or not. 

 

Where the extension of a lease is declined by the National or County Government, the reasons should be given to the leaseholder by way of a notification of at least three [3] years before the expiry of the lease of the intention not to extend lease and copied to the Commission. 

 

If an Applicant is aggrieved they may refer the matter to an independent appeals committee established by the Commission. 

 

Where approval of extension of the lease is granted, the Commission shall have the land revalued to determine the payable land rent and other requisite fees, have the land re-surveyed and georeferenced and have the lessee surrender the existing title or lease certificate in consideration for a new lease. 

 

A Lessee can apply for renewal of a lease to the National Land Commission. The application is made through the office of the Commission in the respective county, in Form LA23. 

 

The Application for renewal may be made either before or after expiry of the Lease. Once approved, renewal of a lease takes effect immediately. Once the application is received, it is forwarded to the Cabinet Secretary or County Executive Committee Member responsible for land in the county government for consideration within seven days of receipt. 

 

The Application should be accompanied by the following documents: 

1. copy of the Identification Card/Passport or Certificate of incorporation (in case of a company (We presume of the registered owner of the lease) 
2. letters of administration and confirmation of grant where applicable 
3. current official search (obtained at least within one month) 
4. Original lease to confirm the status 
5. passport size photograph (We presume of the registered owner) 
6. in the case of a company, the names of the directors and their citizenship status including a search from the Registrar of Companies showing the shares of each director 
7. clearance certificate from the relevant authority in relation to all land rates and rents 
8. information whether the title to be extended will be subject to any existing encumbrance(s), and 
9. proof that the lessee has complied with the terms and conditions of the existing lease. 

The Commission shall before the renewal of a lease, seek representations from the County Executive Committee Member responsible for land, the Director of Surveys, the Director of Physical Planning, the Land Administration Officer of the Commission and any other relevant authority. 

 

Where favourable comments/recommendations for renewal of the lease are received, the Commission shall have the land revalued to determine the payable land rent and other requisite fees, the land resurveyed and geo-referenced and issue a new letter of allotment in a prescribed Form for the parcel and a new lease shall be issued in accordance with the provisions of the Land Act, 2012 and these Guidelines. 

 

Where the renewal of a lease is declined by the National or County Government, the aggrieved applicant may refer the matter to an independent appeals committee established by the Commission.

 

Should you wish to apply for an Extension or Renewal of a Lease, note to seek legal advice and engage the relevant persons in undertaking the said process. 

 

Should you require any assistance, please do not hesitate to contact info@hmsadvocates.com.