Extension and Renewal of Leasehold Titles in Nairobi City County

Legal Basis for Lease Renewal or Extension
Under section 13 of the Land Act, Cap. 280, Kenyan citizens holding leasehold tenures from the government have a pre-emptive right to the re-allocation of the property upon expiry of their leases, provided that the property is not required for public purposes and the proprietors apply for renewal in accordance with the applicable law and procedures. The Land (Extension and Renewal of Leases) Rules, 2017 set out the procedures and documentation required to support applications for both extension and renewal of leases.

The Supreme Court in its recent decision in Harcharan Singh Sehmi & Another v Tarabana Company Limited & 5 Others (Petition No. E033 of 2023), which we discussed in our recent alert, emphasised that upon the expiry of a leasehold interest, the property reverts to the Government, becoming Public Land, and continued possession without a renewed lease does not preserve proprietary rights or create equitable interest.

Application Process for Lease Extension or Renewal
To initiate an extension or renewal of a lease, an applicant is required to submit the relevant completed application form to the NLC.

Upon receipt of the application, the NLC reviews the application to ensure it meets all prescribed requirements. Applications that satisfy the legal criteria are then forwarded to the County Executive Committee Member (CECM) in charge of lands at the County Government. Upon approval by the CECM, the application is returned to NLC for further processing in accordance with the legal provisions. If the NLC declines to grant a lease after an application, the NLC must provide written reasons for the refusal.

Recommendations to Property Owners in Nairobi City County

• Confirm the term of your leasehold title
  Review your title documents to determine the remaining term of your leasehold interest and the conditions of the title.
• Initiate the lease renewal or extension process early in good time
  The lease renewal or extension process requires several approvals and can be protracted. If the unexpired term is five years or less, it is essential for leaseholders to commence the process early enough, preferably before the property reverts to public land.
• Ensure compliance with renewal/extension requirements
  Prior to submitting the application, ensure that all land rates and rent payments are up to date and that any special conditions on the grant have been complied with. For corporate applicants, all statutory documents must be current, and agents applying on behalf of the proprietor must have proper authorisation.

Conclusion
The extension or renewal of a lease is critical to protect the lessee’s proprietorship rights. We, therefore, advise relevant property owners to review their lease terms and, if the remainder of the term is 5 years or less, initiate the renewal or extension process.

Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Adnan Khan or Nicole Gichuhi. 

_________________

Contributors
1. Amollo Simba – Associate
2. Eden Nyagah – Trainee Lawyer