GUIDELINES FOR EXTENSION AND

RENEWAL OF LEASES
04 Jul 2017 by Amrit Soar

On 9th June 2017, the Cabinet Secretary for the Ministry of Lands and Physical Planning in
consultation with the National Land Commission (the “Commission”) issued guidelines
governing the extension and renewal of leases (the “Guidelines”) through Gazette Notice
Number 5734 of 2017. These Guidelines should be read together with Section 13 (1) of the Land
Act, 2012 which sets out the general provisions to be complied with by the Commission where a
lessee wishes to exercise their pre-emptive right to an extension. The Guidelines set out the
process for both extension and renewal of leases.

1. Extension of leases

a) Requirement of a notice

i. Within 5 years before the expiry of the lease, the Commission is required to send a
notice via registered mail, informing the lessee of the date of expiry of the lease, setting out the
rights of the lessee to apply for extension and to whom to make the application.

ii. The notice is to be copied to the Cabinet Secretary or the relevant County Government.

iii. If the lessee fails to respond to the notice within one year, the Commission will take the
following steps:

 publish the notification in two newspapers of countrywide circulation indicating where

the application is to be made.
 conduct a physical verification of the land with a view to establishing the status of the
land.
 If the commission finds that the lessee and the family is occupying the land, it will advise
them to apply for extension and the consequences of failing to do so which include
forfeiting the right over the land and automatic reversion to the National or County
Government.

b) Procedure for making an application for extension of lease

The registered proprietor or an appointed administrator shall make the application to the office of
the Commission where the land is located. The applicant should attach the following to the
application:

i. Copy of the ID/Passport (for an individual) or Certificate of incorporation (for a

company)
 ii. Letters of administration and confirmation of grant where applicable

iii. Current official search (obtained within the month the application is made)

iv. Passport size photograph

v. For 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

vi. Land rent and rates clearance certificates from the relevant authorities

vii. Information whether the title to be extended will be subject to any existing
encumbrance(s)

viii. Proof that the lessee has complied with the terms and conditions of the existing
lease.

Within seven (7) days of receiving the application, the Commission shall forward it to either the
representative of the Cabinet Secretary if the land is vested in the National Government or the
County Executive Committee Member for lands if the land is vested in County Government for
approval.

c) Large Scale Investments

For large scale investments, the Commission in consultation with the National or County
Governments shall ensure that the renewal will be beneficial to the economy and that the
investment purpose is in line with the national development goals and objectives.

d) Consultations with relevant offices

Before approval or rejection of an application, the county or national government shall seek the
views of the following offices:

i. County Executive Committee Member responsible for land

ii. County Government Surveyor

iii. County Government Physical Planner

iv. Land Administration Officer of the Commission

v. Any other relevant authority.

e) Approval or objection of application

Upon receiving views, the National or County Government may either:

 i. approve the extension of lease for a specified term. The land will then be revalued
to determine the payable land rent and other requisite fees, re-surveyed and geo-referenced and
the lessee shall surrender the existing title or lease certificate in consideration for a new lease; or

ii. decline to extend the lease and give the lessee the reasons thereof within ninety
days (90) from the date of the application for extension. The reasons for declining shall be
limited to:

 where the National or County Government needs the land for public purpose under
Section 13, Land Act, 2012 in which case the National or County Government are
required to give the lessee a notification, copied to the Commission, of at least three (3)
years before expiry of the lease of their intention not to extend the lease or
 there is proof that the lessee has failed to comply with the terms and conditions of the
existing lease.

The decision to approve or reject an application of extension of a lease must be forwarded to the
Commission for implementation.

f) Appeals

An applicant who is aggrieved by the decision of the National or County Government may refer
the matter to an independent appeals committee established by the Commission which will be
located in the office of the Executive Committee Member in charge of Land at each County.

2. Renewal of expired leases

a) Where the term of the lease had expired without prior notice to the lessee, the lessee or the
administrator must apply to the Commission for renewal of the lease. The application can be
addressed to the Chairman of the Commission or made through the online portal at
info@landcommission.go.ke

b) The application should be accompanied by the same documents as for an extension as listed
under paragraph 2

(b) above but should also include the original lease to confirm the status.

c) The Commission must seek the views of the County Executive Committee Member
responsible for land, Director of Surveys, Director of Physical Planning, Land Administration
Officer of the Commission and any other relevant authority.

d) Where favorable recommendations are received, the Commission will ensure that:

(i) the land is revalued to determine the land rent and other requisite fees to be paid;

(ii) the land is re-surveyed and geo-referenced;

(iii) a new letter of allotment is issued; and

(iv) ultimately, a new lease for the parcel is to be issued in accordance with the provisions
of the Land Act, 2012 and the Guidelines.

e) If any recommending authority is of the view that the lease should not be renewed, such
authority will give reasons to the Commission within thirty (30) days.

f) Any applicant who is aggrieved by the decision not to renew their lease can appeal to the
independent appeals committee established by the Commission.

g) The appeal or the application for renewal will not be accepted where the land is required for
public use or where the lessee has not complied with the terms and conditions of the existing
lease.

3. Some observations

a) For those who hold leasehold properties, we recommend that they carry out an audit to
confirm when the leases expire.

b) Ensure that their correct address appears in the title so that the Commission notice is send to
the correct address.

c) The owner of a leasehold property should note to make an application for extension of lease
at least five years before the expiry of the term whether a notice is received from the
Commission or not.

d) Although the Guidelines have been issued, it is unclear whether these are being
implemented.

e) There have been media reports that the freeze on renewal of leases for subdivided parcels
may still be in place.

f) The Commission now has extensive powers to determine extension of leases and renewals.

g) The approval of extension or renewal of leases for large scale land owners shall be based on
the benefits to the economy and the country as a whole and the national development goals and
objectives. No clear definition of what constitutes a large scale investment is given.

h) The Guidelines also attempt to deal with absentee land owners.

Conclusion

The procedures and process for obtaining extension and renewal of leases is welcome and helps
with transparency. The Guidelines have attempted to provide for specific timelines for
processing applications to ensure applicants do not suffer from unnecessary delays
Extension of Leasehold titles under Kenyan Law

In Kenya, land/immovable property can be registered under three registration regimes viz:-
(a) The Government Lands Act, Chapter 280 of the Laws of Kenya;
(b) The Registration of Titles Act, Chapter 281 of the Laws of Kenya; and
(c) The Registered Lands Act, Chapter 300 of the Laws of Kenya.
Unlike freehold titles, leaseholds titles are issued or granted a limited period of time, usually
referred to a the term and this may be 33 years, 50 years or 99 years. When the term for which a
leasehold title is issued expires, the land therein comprised in supposed to revert to the
state/Government of Kenya or the relevant local authority, after which is available for
appropriation to another use or person.
It is usually the case that when one has be granted a leasehold interest; he or she would want to
renew the leasehold title after expiry of the initial term, and especially when he/she has
developed the land, so that he can recoup his/her investment. To avoid one being caught
unaware, the registered proprietor of land or his agent should acquaint himself of the terms and
conditions under which the land is held and should keep a record of the expected expiry date of
his leasehold interest. Where one intends to renew his leasehold title, he should commence the
renewal process interest at least 3-5 years before expiry of the initial term.
Below in the Process of for the renewal of a Leasehold Interest Granted by the Government of
Kenya
1. Application to Commissioner of Lands
To initiate the process, the client should engage a qualified advocate or land consultant to assist
him in the process. The latter should begin the process by making a formal application to the
Commissioner of Lands on behalf the client in which he should request for an extension of the
leasehold tile for a further term. Generally, the client will be required to have complied with the
terms and conditions of his leasehold title to qualify for an extension of his leasehold title.
Once the Commissioner of Lands has received the application letter, the same is assigned to a
specific land officer at the Lands Office, who is supposed to deal with the application.
2. Approval from the relevant Government Departments
The attending land officer attend to the application by first circulate the application to various
Government Departments to notify them of the same and to seek their views on the same.
These departments includes:-
(a) relevant local authority;
(b) Director of City Planning; and
(c) Director of Surveys.
Once the requisite approvals have been granted by the above mentioned Departments to the
Lands Office, the Commissioner of Lands through the relevant land officer will then issue the
applicant with formal letter of acceptance of the renewal application, and his is usually subject to
the following conditions being fulfilled:-
(i) Submission of a new Deed Plan of the Property;
(ii) Payment of approval and conveyance fees;
(iii) Surrender of the existing title in exchange of a new grant/title with the extended term;
(iv) Submission of copies of the approved development plans in respect of the existing buildings
on the Property; and
(v) New revised land rent and rates etc.
The new Deed Plan for the Property must be prepared by a duly licensed survey and thereafter
approved by the Director of Survey, who is based at Survey Department, at Ruaraka. We
normally arrange and facilitate this process on behalf of our clients.

3. Issue of new Grant

Upon receipt of the new deed plan of the Property, the following documents are supposed to
forwarded to the Commissioner of Lands to enable the issuance of the new Grant/title:-
(a) A duly executed surrender of the original title to the Government;
(b) The original title for the leasehold title;
(c) A banker's cheque for the necessary payments stated in number 2 above;
(d) The new approved Deed Plan for the Property.
The Commissioner of Lands will then cause the Grant to be prepared and this together with the
new deed plan for the property (usually annexed thereto) are forwarded to the Director of
Surveys for verification and recording. After this process, these documents are returned to the
Lands office for registration and thereafter collection by the applicant.
4. Registration of the Replacement Charge
If the property is mortgaged or charged to a financier institution ton secure some banking
facilities, the property should be discharge before it is surrender to the Government in
substitution of a new grant/title. Most banks will be agreeable to such discharges and renewal
provided that the registered owner of the property agrees to creation and registration a
replacement mortgage or charge in their favour upon the issuance of a new grant/title.
5. Time Frame
In my experience, the process for an extension of leasehold titles takes about 3-7 months.
Kindly do not hesitate to contact me via mainacy@gmail.com in the event that you require
further information or clarification.

The Guidelines for renewal and extension of

leases
The Guidelines for renewal and extension of leases seek to inform the relevant government
agencies such as the Ministry of Lands and Physical Planning, County Governments and
National Land Commission, lessees, professionals and other relevant persons, on the procedures
relating to the extension and renewal of leases.

The Guidelines are anchored on Section 13 of the Land Act, which makes provision for Lessee’s
pre-emptive rights to allocation.

The Guidelines were developed by the Ministry of Lands and Physical Planning in consultation
with the National Land Commission, vide Gazette Notice No. 5734 dated 9th June, 2017.

APPLICATION FOR AND APPROVAL OF EXTENSION OF LEASES

Notice of Renewal
The National Land Commission is required to notify a person to whom a lease (lessee) is granted
by registered mail, five (5) years before expiry of the leasehold that the lease is about to expire.
The notice indicates the date of expiry and notifies the lessee of their pre-emptive right to apply
for extension.

In cases where the lessee does not respond to the notice within one year, the Commission shall
publish the notice on two newspapers of wide circulation.

Consequences of not applying for renewal of leases

The Guidelines outline the consequences of not applying for renewal of leases to include
forfeiture of the preemptive right over the land and the automatic reversion to the National or
County Government.

Procedure for Extension

The procedure for application for extension involves;

1. The registered proprietor of the land or the appointed administrator lodging an

application with the Land Commission.
2. Upon receipt of the application, the Commission is required within seven (7) days, to
forward the application for approval to the representative of the Cabinet Secretary for
land vested in the National Government or the County Executive Committee Member of
lands for land vested in the County Government.

The Commission shall have and operate a serialized register where such applications shall be
registered.

Factors for consideration in granting a Lease to citizen or non-citizen

The factors outlined in the Guidelines to be considered by the National or County Government in
processing of an application for extension of leases for a lessee who is a citizen or a non-citizen
are:

 Disclosure of Directors and their citizenship.

 Proof of clearance certificate.
 Information on whether the land is subject to any encumbrance.
 In instances of large scale investments, the National or County Government shall
consider whether, the extension is beneficial to the economy and the country as a whole
and whether it is in accordance with the national development goals and objectives.

RECOMMENDATION FOR APPROVAL OF EXTENSION OF LEASE

The National and County Governments, before approving the extension, are required to seek
recommendations from the following officials; 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.

Upon receipt of the recommendations, the National or County Government may;

 Approve the extension of the lease for a specified term or

 Decline to approve the extension giving reasons to the lessee within ninety (90) days
from the date of the application for extension.
 The decision by the National or County Government is to be forwarded to the Land
Commission for implementation.
 In cases where the approval for extension of a lease is granted, the Commission shall;
have the land revalued to determine land rent payable and other requisite fees, have land
re-surveyed and geo-referenced, have the lessee surrender the existing title or lease
certificate in consideration for a new one, issue a new letter of allotment in a prescribed
form and a new lease issued.

REJECTION OF APPLICATION TO EXTEND A LEASE

Notice of non-extension of lease

The National or County Government is required in cases of non-extension of leases to give the
lease holder notice of at least three (3) years before the expiry of the lease, and a copy of the
same issued to the Land Commission

Grounds for rejection

The National or County Government may reject to extend a lease on grounds of; use for public
purpose and, if the land is included in the County Spatial Plan and Cities Urban Area Plans as
provided for under the County Governments Act, 2012 and the Urban Arears and Cities Act,
2011 or where there is proof that the lessee has not complied with the terms of the existing lease.

Upon notification of the rejection to extend the lease:-

 The National or County Government shall carry out an inventory of the developments
on the land;
 The lessee shall; be required not to put up new developments on the land; and the lessee
shall be required to approach the respective government for compensation of the said
developments.

APPEAL ON REJECTION OF EXTENSION

Where the National or County Government declines to grant an extension of lease, the aggrieved
party may lodge an appeal with the Commission Appeals Committee.

Appeals are to be heard at the respective counties in the office of the Executive Committee
Member in charge of Land at the County level.
RENEWAL OF LEASES

 Where the lease expires without prior notice by the Land Commission to the lessee, the
lessee may be required to apply for a renewal of lease.
 The application for renewal shall be lodged with the Commission and shall be done by
the registered owner of the expired lease or appointed administrator.
 Before making the decision on whether or not to approve the application for renewal, the
Commission shall seek recommendations of the officials stated herein above.
 Where the application for renewal is allowed, the Commission shall have the land
revalued to determine land rent payable and other requisite fees, have land re-surveyed
and geo-referenced and issue a new letter of allotment in a prescribed form and a new
lease issued.
 Where Commission gives an objection against renewal, the Commission shall require the
relevant authorities to give reasons for the rejection within thirty days.