Kenya’s property market continues to attract local and foreign investors, but the sector also carries risks that can wipe out savings if buyers fail to do their homework.
Reports in 2017 of Kenyans losing money in housing scams and real estate hoaxes underscored the need for caution before committing to a purchase or development project.
Key checks before investing ¶
One of the first steps is to confirm that the title deed is valid and that the land is correctly zoned for the intended use. Buyers should also establish whether land rates and taxes have been cleared.
Another critical step is checking for disputes, claims, or other legal encumbrances affecting the land or property. In many cases, buyers have discovered problems only after paying for land they expected to develop.
Legal support can also make a difference. Hiring an advocate with experience in real estate may add to the upfront cost, but it can help prevent expensive mistakes later.
Insurance is another safeguard that can protect an investment from losses linked to disaster or damage.
For buyers relying on financing, the terms of any loan or mortgage should be read carefully. A repayment plan that allows flexibility can be useful when financial plans do not go as expected.
In a market where demand remains high, careful checks can help investors avoid the kind of losses that have caught out other buyers before.
