How to approach property investment in EAC countries

I have been an ardent reader of Home & Away for nearly six years now and appreciate how the pullout has consistently put us on the map on real estate investments. I would, however, like to know whether it is possible for Kenyans to buy property in other East African Community countries.

Tom, Nairobi.

It is possible to invest in other East African Community member states as long as the transaction is in line with conveyancing in the preferred country.

Enterprising Kenyans are investing in the region and mainly rely on technology to shop for property before engaging property lawyers to wrap up the transactions.

Real estate firms update their database frequently to ensure listings are current and clients can find their ideal property.

Registered real estate agents say prospective clients are increasingly getting interested in property mainly in Tanzania and Rwanda.

According to the agents, the would-be investors who say prices in Nairobi are unrealistic contemplate a property boom, arguing on-going infrastructural developments would change real estate fortunes within the East African Community.

It is wise to involve a qualified and duly registered lawyer in property transactions across the region. The lawyer would brief you on the legal requirements and possibilities of investing abroad as property laws are different in the region.

For instance, land ownership remains restrictive in Tanzania, as occupation by non-citizens is restricted to land for investment purposes regardless of the sector.

Under Tanzanian laws, occupation of land by non-citizens is restricted to lands for investment purposes under the Tanzania Investment Act 1997 and Land Act 1999.

Furthermore, land in Tanzania is government property — citizens or non-citizens only lease for 33, 66, or 99 years, depending on the nature of the investment. The law in Tanzania also forbids individuals from selling land to foreigners.
Until the EAC harmonises property laws, foreigners can only lease land in Tanzania through the Tanzania Investment Centre.

Kigali is also emerging as a destination of choice as many international organisations pitch tent in the Land of a Thousand Hills.
Rwanda, which welcomes investors, is the first country in East Africa that has already published its national land policy report.

According to the report, Rwanda’s land policy has prioritised land as an important component in the national economic transformation.

Kigali may be lucrative but scarcity of land is a growing problem due to its small size and rapid population growth from 1,594,400 in 1934 to nearly 10 million this year.

Furthermore, the 1994 genocide in Rwanda is also listed among other factors that contribute to the scarcity of land.

As the desire to invest abroad grows, prospective investors should also be wary of on-line fraudsters who may “sell” them non-existent property. However, the secret to a successful purchase of property abroad remains finding the right property in the best location and at the lowest price possible.

— The writer is an advocate of the High Court