Buying Land in Kenya As A Foreigner: Everything You Need to Know.
As you consider buying land in Kenya as a foreigner, you may be abroad and looking to relocate, an asylum seeker, or a non-citizen interested in purchasing land for development. This process can feel overwhelming, especially with the new tax regulations, updated land laws, and alarming stories of foreigners being defrauded of millions during property transactions in Kenya. Additionally, there are concerns regarding the trustworthiness of some lawyers hired by foreigners. So, how can you navigate these challenges to safely and successfully buy and own property in Kenya? Which process guarantees….
PUBLISHED: JANUARY 21, 2025 UPDATED: JANUARY 30, 2025.
29 MINUTES READ TIME
WRITTEN BY:
Joshua Munuve, Digital Marketing Associate at Musyimi Damaris & Company Advocates.
REVIEWED, FACT-CHECKED & APPROVED BY:
Damaris Musyimi, Founder and Head Advocate at Musyimi Damaris & Company Advocates.
The Ultimate Guide For Foreigners Looking to Buy and Own Property in Kenya. (Proven)
Buying land in Kenya as a foreigner requires a clear understanding of the legal framework, specific requirements, and land acquisition processes. Kenya’s land laws permit foreign nationals to own land. Many foreigners are actively investing in holiday homes, office complexes, commercial facilities, industrial plants, and other properties in the country. However, buying land in Kenya as a foreigner is subject to certain restrictions and conditions.
At Musyimi Damaris and Company Advocates, we have encountered cases where foreigners have been misled into believing that they cannot acquire land directly in their names. This misunderstanding has sometimes led foreign investors to enter risky agreements with locals to purchase properties on their behalf, particularly in the coastal region.
In this straightforward guide, we explain everything you need to know about buying and owning land in Kenya as a non-citizen. We cover topics ranging from what the land laws state to the practical steps you should take when buying land in Kenya as a foreigner, including how to obtain and maintain your land ownership documents.
Table of Contents
- Understanding What The Law Says About Buying Land in Kenya as a Foreigner.
- Determine Your Eligibility to Buy Land in Kenya as a Foreigner.
- Search and Verify the Land You Want to Buy in Kenya as a Foreigner.
- Conduct Thorough Due Diligence on the Land, the Seller, and the Property Lawyer.
- Negotiate the Property Terms of Sale & Sign the Sale Agreement.
- Payment of Stamp Duty on the Property.
- Seek Land Control Board Consent (if applicable).
- Complete the Land Registration, Payment, & Transfer Process.
- Comply with Tax Obligations on Your New Property.
- Maintain and Safeguard Your Land Ownership Documents Using 2 Proven Tips.
- How to Avoid the Single Most Legal Pitfall When Buying Land in Kenya as a Foreigner.
- Frequently Asked Questions About Buying Land in Kenya as a Foreigner.
- Conclusion on Buying Land in Kenya as a Foreigner.
Step 1: Understanding What The Law Says About Buying and Owning Land in Kenya as a Foreigner.
As a non-citizen interested in buying land in Kenya and owning it, it’s important to understand the land laws governing such transactions. This overview can be divided into two key areas:
(i) The constitutional framework for foreign ownership of land in Kenya.
(ii) The legal requirements for foreigners looking to buy land in Kenya.
Here’s what each area encompasses.
(i) The Constitutional Framework of Owning Land in Kenya as a Foreigner
The Constitution of Kenya, under article 65, restricts total foreign ownership of land in the country. It specifies that foreign nationals can own buy and own land in Kenya, but this ownership is generally limited to 99-year leasehold titles in urban and non-agricultural areas.
As a foreign national, you are not permitted to directly own agricultural land in Kenya. However, legal provisions exist that allow you to acquire agricultural land through a Kenyan company.
(ii) Legal Requirements of Owning Land in Kenya as a Foreigner:
As a non-citizen, you cannot own agricultural land in Kenya outright; however, you can lease it for up to 99 years. The Land Control Act mandates that the Land Control Board approve any transactions involving agricultural land.
Additionally, if you buy land in Kenya as a foreigner, the government retains authority over property development and the terms of the lease in this leasehold arrangement. If you intend to use the leased property for profit, you may receive property rights, although the government retains the right to reclaim and reassign the land.
To lease land in Kenya as a non-citizen, you must first obtain an Alien Land Holding License from the Ministry of Lands and Physical Planning.
Obtaining an Alien Land Holding License can be a lengthy process that requires several documents, including a valid passport, proof of income, and a detailed proposal for how you plan to use the land. We recommend hiring the best property lawyers in Kenya to ensure compliance throughout this process.
Various Ways in Which a Foreigner Can Buy Land in Kenya.
As a foreigner, you can buy and own land in Kenya through three primary methods as explained below.
(i) Individual land ownership as a foreigner– the land is registered under the foreigner’s name.
(ii) Foreign land ownership through a company– enables a foreign entity to hold land in its name.
(iii) Foreign land held in trust– a different person or entity manages the land for the benefit of the foreigner.
It’s advisable for foreign buyers to consult with a reputable property lawyer in Kenya to determine the most suitable ownership method for their needs.
Types of Land in Kenya You Need to Know of as a Foreigner
When considering buying land in Kenya as a foreigner, it’s essential to understand the different types of land recognized under Kenyan land laws. Here’s a detailed overview:
(i) Public Land: This category encompasses land that is owned by the government and designated for public use. It includes essential areas such as national parks that protect wildlife and natural resources, historical sites that preserve the nation’s heritage, and vital infrastructure such as roads, airstrips, and government buildings. Public land is crucial for the community and national development, as it serves the interests of all citizens.
(ii) Community Land:This type of land is collectively owned by specific communities, often based on ethnic ties or shared cultural and social interests. Community land is intended for the benefit of the entire community, providing resources for agriculture, grazing, and communal activities. The management and use of this land are usually governed by the customs and regulations established by the community, fostering a sense of ownership and responsibility among its members.
(iii) Private Land: This includes property that can be acquired and owned by individuals or entities under two distinct tenures: freehold and leasehold. Freehold land offers the owner complete ownership rights, allowing for significant flexibility in its use and transfer. In contrast, leasehold land is typically held for a specified period, usually up to 99 years, after which ownership may revert to the government or be renegotiated. Private land ownership in Kenya enables individuals to develop and utilize the land according to their needs, subject to local regulations and zoning laws.
Understanding these distinctions is crucial for any foreigner looking to pursue land ownership in Kenya effectively.
When making decisions about land ownership in Kenya as a non-citizen, it is advisable to consult with an eperienced property lawyer. Their expertise can provide you with personalized guidance tailored to your specific circumstances, as each choice carries its history and implications that can directly impact your ownership rights.
Who Can a Foreigner Buy Land From in Kenya?
If you are a foreigner interested in buying land in Kenya, there are several legally recognized entities from which you can purchase the property. These include:
(i) Trusts, Companies, Individuals, and Communities: Each of these entities may own land in Kenya and can sell it to a non-citizen. Trusts and companies often have more structured land transaction processes, while individuals and communities can offer unique opportunities and insights into local customs and practices.
(ii) Private Developers: These are businesses or individuals who construct and sell residential or commercial properties. As a foreigner looking to buy and own property in Kenya, engaging with reputable private developers can provide access to new developments or well-located investments.
(iii) Licensed Real Estate Agents: These professionals are equipped with the knowledge and resources to guide you through the property market. As a foreigner looking to buy and own property in Kenya, they can help you navigate available listings and ensure that transactions comply with legal requirements.
(iv) Saccos, Churches, and Chamas: These community-based organizations can be instrumental in property acquisition, as they often have collective purchasing power and a deep understanding of the local property landscape. As a foreigner looking to buy land in Kenya, they can sell it to you.
(v) Cooperatives and Financial Institutions: These entities can sell their property to a non-ciitzen. Some do even offer financing options along with property sales, making it easier for the foreigner to obtain the necessary funds for your land purchase.
Given the complexities and unique requirements associated with land ownership in Kenya, it is advisable to consult with the best property lawyer you can find in Kenya. Their expertise can help you navigate the legal landscape and ensure that you make informed decisions throughout the process.
Recent Legal Changes in Property Ownership That Affect Foreign Ownership of Land in Kenya.
As a foreigner interested in buying land in Kenya, it’s essential to stay informed about the recent legislative changes that impact land ownership. The pivotal law to note is The Sectional Properties Act 2020. This legislation introduces a framework that allows for the subdivision of buildings into distinct units that can be independently owned, while also maintaining shared common areas.
This means you can now comfortably own a unit, such as an apartment, without the necessity of acquiring the entire building itself. Imagine owning a beautifully designed apartment in a vibrant community setting, where you also share access to amenities like gardens, pools, or recreational areas with other residents.
The main objective of this law is to simplify the property acquisition process for foreigners, ultimately reducing the costs involved and making ownership more accessible. It also enhances the legal protections available to foreign owners of these units, ensuring that your investment is secure and well-managed. This change opens up new opportunities for you to invest in Kenya’s property market with greater ease and confidence.
Step 2: Determine Your Eligibility to Buy Land in Kenya as a Foreigner.
If you are a foreigner interested in buying land in Kenya, it is important to understand your eligibility to buy land in the country. Additionally, you should consider the various types of land available for acquisition, as each type has its specific regulations and implications. The table below details the factors to consider.
Factors to Consider | Description |
1. Eligibility to own land in Kenya as a non-citizen. |
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2. Land use type. |
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Familiarizing yourself with these aspects will help guide your decision-making process regarding property ownership in Kenya.
Step 3: Search for the Land You Want to Buy as a Foreigner.
As a foreigner interested in buying land in Kenya, you should organize your preferences as outlined below.
(i) Research and Selection of the Property You Want to Acquire:
To begin, identify the type of land you are interested in, such as residential, commercial, or agricultural, along with its specific location.
You can find land listings through reputable real estate agents, property websites, or property advocates. Additionally, consider using property platforms or reaching out to a reputable Kenyan lawfirm that specialize in land transactions.
For example, companies like Del Monte, which operates in the soft-drinking industry, work under long-term leases from both county and national governments. It is also possible to convert freehold land to leasehold to transfer ownership to a non-citizen.
(ii) Land Type Verification of the Land You Want to Buy:
In this crucial phase of your property search, it is essential to confirm that the land you wish to buy in Kenya is not located in a zone where foreign ownership is prohibited, such as regions designated for agricultural use. If you do intend to purchase agricultural land, you must ensure that you fulfill all requirements for ownership in that category.
Given the complexities involved in navigating property laws in Kenya as a foreigner, it is highly advisable to consult with a skilled property lawyer in Kenya who specializes in this area. Engaging a seasoned legal expert can provide you with invaluable insights during this critical step, and many experienced property lawyers offer an initial consultation at a relatively low cost, making it a practical choice for foreigners looking to buy and own land in Kenya.
Step 4: Conduct Thorough Due Diligence on the Land, the Seller, and the Property Lawyer.
If you are a foreigner looking to buy land in Kenya, it is essential to understand that this is the most critical step, as it determines whether you may fall victim to fraud when purchasing property. At Musyimi Damaris & Company Advocates, we have significant experience in assisting and advising non-citizens on due diligence. Our expertise has helped many individuals avoid fraud and make sound investments.
Our due diligence process revolves around the following.
Factors to consider. | Description. |
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2. The property you want to buy. |
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3. The real estate agent. (if they are present in the land transaction) |
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4. The property lawyer who is representing the seller. (if they are present in the land transaction) |
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As a non-citizen looking to buy and own land in Kenya for the first time, you may find this process to be quite exhaustive. However, if approached correctly, you can ensure a smooth and safe land transaction. We strongly advise against taking shortcuts, even if you trust the person selling you the property. Our experience shows that dedicating time to this process can help protect you from potential fraud.
Some steps will require the use of online tools, while others will necessitate physically visiting the property to verify details, especially regarding mutations and demarcations. Involving a reputable property lawyer in Kenya will alleviate much of this burden, as they will conduct the necessary due diligence on your behalf. Your property lawyer will provide recommendations based on the findings of this due diligence. For example, if any red flags are raised regarding a piece of property, they will advise you to explore alternative options to avoid potential ownership issues in the future.
Step 5: Negotiate the Property Terms of Sale & Sign the Sale Agreement.
Negotiating the Terms of the Property
As a foreigner interested in purchasing land in Kenya, negotiating and signing the sale agreement is a crucial step. This process brings you closer to becoming a legitimate owner of your desired property in Kenya.
After identifying the land and performing due diligence, the next step is to negotiate the price, terms of sale, and payment schedule with the seller.
Common payment methods include bank transfers or installment payments, depending on what you agree upon.
During the negotiation process, having a property lawyer you trust is invaluable. They can represent your interests and help you take advantage of any potential opportunities in the deal. For example, you might leverage your due diligence findings to negotiate more favorable terms. This could include negotiating a lower price based on the terrain and soil structure of the plot you are interested in purchasing in Kenya.
Signing the Sale Agreement
Following the negotiations, a comprehensive sale agreement will be meticulously prepared by a qualified property lawyer. This document becomes legally binding once both parties affix their signatures. It typically encompasses a variety of critical details, including the identities of the buyer and seller, a thorough description of the property—such as its size, location, and title number—the agreed-upon sale price, the payment structure, and the specific terms governing the transfer of possession. It also includes a dispute resolution clause in case the parties disagree during the execution of the agreement and any dispute arising from the sale agreement.
For this agreement to hold legal weight, it must be signed by both parties and witnessed appropriately. We have discovered that guiding our clients through the sale agreement line by line before they sign significantly enhances their understanding of the commitments they are undertaking. This process not only clarifies the terms but also empowers them to make informed decisions throughout the transaction. After signing the agreement, you can then pay the deposit as indicated in the sales agreement.
Step 6: Payment of Stamp Duty on the Property You Want to Buy as a Foreigner.
As a foreigner interested in buying land in Kenya, it’s essential to understand the tax known as stamp duty. This tax is levied on the transfer of various types of property, including both land and real estate transactions. The stamp duty payments are usually done through the State Department of Lands and Physical Planning.
It’s important to note that stamp duty is a prerequisite for completing a property transfer. This means that before you can finalize your purchase and have the title deed officially issued in your name, the stamp duty must be fully paid. For non-citizens seeking to acquire land in Kenya, the stamp duty rate depends basically on the property’s market value. Understanding this requirement is crucial for ensuring a smooth property transaction.
An experienced property lawyer in Kenya should be able to guide on the best practices to take full advantage of when paying stamp duty in Kenya as a foreigner.
Step 7: Land Control Board Consent (If Applicable)
As a foreigner interested in buying land in Kenya, following this step is crucial to ensure that your property purchase complies with local regulations. The step is obtaining consent from the Land Control Board. Please note that the board will not approve transactions involving agricultural land if the buyer is a foreigner.
The Land Control Board is a government entity responsible for approving all land transactions in agricultural areas. It’s important to understand that the board cannot grant consent for transactions involving the sale, transfer, lease, exchange, or partition of land to individuals who do not meet the following criteria.
- a Kenyan citizen;
- a private company or cooperative society, all of whose members are Kenyan citizens;
- a group representative incorporated under the Land (Group Representatives) Act;
- a state corporation as per the State Corporation Act.
As a non-citizen, you can apply for exemptions through a presidential notice published in the Kenya Gazette. Public companies with foreign shareholders may also acquire agricultural land, subject to specific conditions.
For non-agricultural land located in urban areas, this exemption process is not necessary. To move forward with the purchase, you (or your property lawyer) must apply to the Land Control Board for consent. Once your application is approved, the consent will be issued and will be part of the documentation required for the land transfer.
It’s important to note that seeking approval from the Land Control Board may require ongoing follow-up, depending on the volume of requests and bureaucratic processes. At this stage, the experience of your property lawyer can be invaluable.
Step 8: Complete the Land Transfer Process
As a foreigner interested in buying land in Kenya, this is the last step and it follows after the approval of the Land Control Board. It’s properly explained in the table below.
Land Buying Step. | Description. |
1. Transfer of property ownership. | This process takes place once all legal requirements have been met, including the payment of stamp duty and obtaining consent from the Land Control Board. The transfer process will then commence at the Lands Registry. |
2. Registration of the property under your name. | The Lands Registry will carefully examine the submitted documents to ensure everything is in order. Once they have completed their review, they will proceed to update the ownership details in the Lands Registry, officially transferring the property to your name. |
3. Obtain a new Leasehold Title. | By following this process, you will receive a new Leasehold Title that reflects your ownership and provides legal proof of your property rights. |
With the help of an experienced property lawyer in Kenya, this process can become an exciting journey. Their expertise ensures that everything moves quickly and efficiently, making the process smooth and enjoyable. Additionally, a reputable property lawyer in Kenya can provide valuable tips to help expedite the processing of the Leasehold Title.
Step 9: Comply with Tax Obligations on Your New Property.
As the new property owner, you have several tax obligations to comply with, as explained below:
(i) Land Rates Due on Your Property:
You need to fulfill your obligation to pay land rates to the county government. These rates play a crucial role in sustaining and enhancing the community by financing a variety of local services, including the development and maintenance of infrastructure, educational programs, and public safety initiatives.
Neglecting to pay these land rates can lead to serious consequences, including the imposition of penalties. Additionally, local authorities may take further action, which could result in the repossession of your land. It is important to stay informed and timely with your payments to ensure the continued prosperity of both your property and the community at large.
(ii) Capital Gains Tax (CGT) on the Property:
If you decide to sell the land in the future, it’s important to be aware that you will be liable for Capital Gains Tax (CGT). In Kenya, the current CGT rate depends on the profit that you earn from the sale of the property. However, it’s essential to note that your ability to sell the land is contingent upon the specific terms and conditions outlined in the lease agreement. Make sure to review those provisions carefully, as they will govern your selling options and obligations.
Step 10: Maintain and Safeguard Your Land Ownership Documents Using 2 Proven Tips.
Proper record-keeping is essential when it comes to land transactions. We recommend that you maintain all documents related to these transactions, including title deeds, sale agreements, land search certificates, tax receipts, and proof of payments for taxes and registration fees.
Based on our experience at Musyimi Damaris & Company Advocates, here are two effective tips to help you safeguard your land ownership documents.
- Create Digital Copies: Start by scanning all your important legal documents to produce high-quality digital versions. Securely store these digital copies on a password-protected device, such as an encrypted external hard drive, or utilize a reputable cloud storage service that offers robust security features. This approach not only safeguards your documents against loss or damage but also provides easy access whenever you need to retrieve them.
- Utilize Secure Storage: For your physical legal documents, select a secure and trustworthy storage solution. Consider using a sturdy, lockable filing cabinet or a safe deposit box at a bank. Ensure that the location is fire-resistant to protect against potential disasters and that access is restricted to only those individuals you fully trust. By carefully choosing where to keep these vital documents, you can greatly reduce the risk of theft or loss.
These documents are crucial if you need to sell, transfer, or lease the property in the future. In the unfortunate event that these documents are lost or damaged, you should immediately notify your property lawyer, who will guide you on how to replace them.
How to Avoid the Single Most Legal Pitfall When Buying Land in Kenya as a Foreigner.
Foreign investors often try to bypass ownership restrictions using local shareholders or nominees. They may set up companies with local shareholders who declare they hold shares for foreign investors or use nominees to conduct transactions and hold property. However, these practices can lead to legal disputes, as they violate existing laws. Property in trust is only considered owned by a Kenyan citizen if all beneficial interests are held by citizens, making these methods risky for investments.
To protect yourself from these complications, we recommend two effective strategies: First, educate yourself on the regulations regarding buying and owning land in Kenya for foreigners. Second, consult with a law firm that has extensive experience in property transactions, such as Musyimi Damaris and Company Advocates. Our best property lawyers in Kenya will remove all the guesswork and unburden you with all the nitty-gritty details that involve buying land in Kenya as a non-citizen.
Frequently Asked Questions About Buying Land in Kenya as a Foreigner.
According to the relevant Kenyan legislation, non-citizens can buy and own land but only under some conditions. Foreigners can only own land for a maximum duration of 99 years through leasehold tenure. This means that non-citizens are not allowed to possess freehold property. Furthermore, the Constitution states that if a non-citizen holds any title document that seemingly grants them an interest in land exceeding a 99-year lease, the provision will be interpreted as granting the individual a 99-year leasehold interest, and nothing beyond that.
Foreigners interested in buying land in Kenya as non-citizens must ensure they have their identity documents readily available. Additionally, enlisting the help of an experienced property lawyer is crucial, as they can provide valuable guidance throughout the often complex process of navigating property laws and regulations in the country. Their expertise will help ensure a smooth transaction and protect the buyer’s interests in this unique real estate market. We recommend Musyimi Damaris & Company Advocates as the best law firm in Kenya to help foreigners in Kenya buy and own property.
Non-citizens in Kenya can obtain a mortgage by having a tax identification number, maintaining a good credit history, and fulfilling specific requirements set by the lending institution.
Yes, non-citizens can invest land in Kenya for purposes of revenue-making or generating income. However, note that foreigners can only invest the land for commercial purposes and not for generating personal rental income. Consulting experienced property law firms in Kenya like Musyimi Damaris and Company Advocates is the best way to understand your legal options.
According to the Land Control Act, the Land Control Board is mandated to deny permission for the transfer of agricultural land to individuals who are not citizens of Kenya. The sole exception appears to be that a public company is permitted to own agricultural land, even if some of its shareholders are non-citizens. In contrast, a private company must have all its stakeholders as Kenyan citizens to own agricultural land.
According to the law, non-citizens are not eligible for the automatic renewal of their leasehold titles once the initial term expires. Section 13 of the Land Act states that upon expiration of a leasehold title, the owner may apply to the Ministry of Lands for renewal. The landowner is entitled to an extension of the lease, provided they are a citizen of Kenya, have complied with the lease conditions, and the land is not required by the national or county government for its purposes. It is advisable to consult a reputable property lawyer in Kenya, such as Musyimi Damaris & Company Advocates, who can offer guidance tailored to your specific situation.
The Kenyan legislation states that upon the expiration of a leasehold title after 99 years, the Land Commission will grant pre-emptive rights to the former leasehold owner, provided that the lessee is a Kenyan citizen and the land is not needed by the national or county government for public purposes. The term citizen here indicates that a non-citizen is ineligible for an extension after the 99-year period ends.
Freehold land represents the highest form of ownership one can have over a property, granting the owner complete possession of the land for their lifetime. This allows the owner’s heirs to inherit the property as long as the family line continues. Typically, a freehold title deed has no limitations regarding how the land can be used or occupied.
Conversely, a Leasehold interest in land is granted for a specified duration and requires the payment of fees or rent to the landlord. For non-citizens, leases are typically available for 99 years.
As a foreigner in Kenya, you are permitted to own land solely through leasehold tenure. The duration of their lease is capped at 99 years. This form of leasehold ownership allows the government to determine the types of developments and the lease conditions for these properties. Foreign individuals who make profitable use of such properties are granted land, while the government retains the authority to reclaim the property and allocate it to others.
Conclusion on Buying and Owning Land in Kenya as a Foreigner
Buying land in Kenya as a foreigner is indeed feasible, but it involves navigating a set of specific legal frameworks and guidelines. Foreign investors typically must obtain land in Kenya through a leasehold title, which is commonly available in areas classified as non-agricultural. Alternatively, they have the option to go through a local Kenyan company to facilitate the acquisition process.
To ensure a smooth and secure transaction, foreigners should enlist the services of an experienced property lawyer in Kenya. This property lawyer can conduct comprehensive due diligence, carefully examining all relevant documentation and legal requirements. Furthermore, they can help ensure compliance with Kenya’s tax regulations and property registration processes. By following these steps and leveraging professional guidance, foreign buyers can successfully navigate the complexities of the Kenyan property market and confidently hold property in the country.
You can also read our other informative blogs here. If you have any questions regarding buying land in Kenya, check out our Frequently Asked Questions. You can also send us a confidential message through our contact us form or directly call us at 0792838425 for an affordable legal review of your matter.
Supporting Sources:
WRITTEN BY:
Joshua Munuve is a Digital Marketing Associate at Musyimi Damaris & Company Advocates. He has driven the growth of the law firm's online presence from getting no clients online to getting multiple and consistent clients a month to the point of online inquiries and consequent clients being more than walk-in inquiries and consequent clients. This has been achieved through his web development skills.
REVIEWED, FACT-CHECKED & APPROVED BY:
Damaris Musyimi is the Founder and Head Advocate at Musyimi Damaris & Company Advocates. With over three years of experience in legal practice, she has assisted numerous Kenyans in recovering more than 100 hectares of land. Additionally, she has guided many individuals in purchasing property and has supported families with succession and inheritance matters. Several legal organizations she previously collaborated with continue to consult her on various legal issues.
