Buying Land For Your Children in Their Own Name in Kenya

Buying land for your children in Kenya in their own name is possible if they are adults. If they are minors, the land can be held in trust by an appointed trustee or guardian, who manages the property until they reach the age of eighteen.

Buying land for your children is a legacy move, preserving and passing on wealth from one generation to the next. Parents who invest in property for their child(ren) may do so to save for future expenses like school fees (especially if the property has rental income), to pass on surplus income or for any other reason. However, before buying land for your children in their name, consider their age and make sure that ownership is registered in a way that ensures protection of the asset and the correct level of accessibility to you or the child in the future.

This article breaks down the legal, practical, and strategic considerations of buying land for your children in their own name in Kenya.

Table of Contents

• Can You Buy Land in Your Children’s Name in Kenya?
• Legal Structures: What Are Your Options for Children Below 18?
• Legal Structures: What Are Your Options for Children above 18?
• How to Buy Land in Your Child’s Name (Legal Process)
• Mistakes to Avoid
• Best Practices When Buying Land for Children
• Frequently Asked Questions (FAQs)
• Conclusion
• Need Help Buying Land for Your Children?

Can You Buy Land in Your Children’s Name in Kenya?

You can buy land in your children’s name in Kenya. However, depending on whether they are an adult or a minor, the registration and management process may differ significantly.

For Minor Children

Under the Land Registration Act and the Children Act, a child cannot hold legal title to a land parcel in their own name directly. Instead, the land must be held in a trust for the use and benefit of the minor by a legal guardian or trustee, managing the property until the child attains the age of eighteen (18) years.

The legal provisions:

• Section 8 of the Children Act provides that a child is entitled to the protection of their property, but it must be administered by a parent, guardian, or trustee.
• Under the Trustee Act, a trustee has fiduciary duties in managing assets, including land, on behalf of a beneficiary (your child).
• The Land Registration Act at Section 24 specifies that registration of a person as the proprietor of land confers upon that person absolute ownership.

For Adult Children (18+)

If your child is already an adult, land can be registered in their name directly. You may buy it on their behalf or, having purchased it yourself, gift it to that child outright.

Legal Structures: What Are Your Options When Buying Land for Children under 18 Years Old?

There are two structures one can use when buying land for minor children in their own name.

Recommended Structure	Legal Tool Required	Additional Notes
Holding through a Trust	Registered Trust	A trust is subject to mismanagement by trustees. To mitigate this risk, have a good trust deed and appoint more than one trustee in odd numbers.
Holding through a Company	Registered Company	Bear in mind that companies require meticulous maintenance, such as filing annual tax and BRS returns.

Explore our article on Trusts in Kenya to learn more about the different types of trusts, the essential elements of a trust deed and the registration process.

While the Companies Act does not expressly prohibit the holding of shares by a minor, the law recognises that a minor cannot enter into binding contracts on their own behalf. Therefore, while shares can be registered in the name of a minor, the rights and obligations associated with those shares (e.g., voting, signing resolutions, receiving dividends) must be managed through an adult—typically a trustee, guardian, or parent—until the child reaches majority (age 18). A company is recommended when the property in question is an active business requiring management, for example, a rental property.

Legal Structures: What Are Your Options When Buying Land for Children above 18 Years Old?

It is much easier to buy land for adult children in their own name. The recommended structures mention ways to help maintain control if needed.

Recommended Structure	Legal Tool Required	Additional Notes
Holding through a Trust	Registered Trust	A trust is subject to mismanagement by trustees. To mitigate this risk, have a good trust deed and appoint more than one trustee in odd numbers.
Co-ownership	Joint Tenancy	In a joint tenancy, the land is passed on to the surviving owner if one of them dies on presentation of the death certificate of the deceased owner.
Outright Gift	Gift Declaration	When bought as a gift, the parent loses total control of the property.
Holding through a Company	Company structure	Bear in mind that companies require meticulous maintenance, such as filing annual tax and BRS returns.

How to Buy Land in Your Child’s Name

The process of buying land for a child in their own name remains similar to the regular process of buying land. However, at the point of registration of the new owner of the property, ensure that it is held in the right way.

1. Conduct Due Diligence
   • Search the title at the Land Registry
   • Verify the seller’s identity and ownership
   • Physically visit the property
   • Confirm land use and zoning from the County Government
2. Agreement for Sale
   • Sign a Sale Agreement ensuring favourable terms.
   • Indicate the buyer’s name (you, your child, or both, depending on the selected ownership structure)
   • If the child is a minor, ensure a trust clause is included in the agreement.
3. Stamp Duty and Transfer of Property
   • Pay Stamp Duty (typically 4% of the property value)
   • Lodge documents at the Land Registry
   • Register the land under the child’s name (with trustee details if underage)
4. Trust Deed (If Buying for a Minor)
   • Create a written Trust Deed appointing trustee(s) who can be you, the parent or another adult.
   • Register the deed with the Registrar of Documents alongside the transfer.
5. Safekeeping of Title
   • Hold the title deed securely.
   • Keep trust documentation readily available for future reference.

Tax Implications When Buying Land for Your Children in Kenya

When buying land for your children, whether minors or adults, it is important to mention the tax obligations and potential liabilities that may arise during and after the transaction.

1. Stamp Duty

Stamp duty is a mandatory tax payable by the buyer (in this case, the child or the parent acting on the child’s behalf) upon the transfer of property. It applies regardless of whether the transaction involves a child. Even where no money changes hands, i.e the transfer is a gift, stamp duty is payable.

The rate of Stamp duty is 4% of the property’s value for urban areas and 2% for agricultural land in rural areas. Always obtain a valuation by the Government Valuer to avoid underpayment disputes with KRA.

2. Capital Gains Tax (CGT)

Capital Gains Tax is payable by the seller on any profit (gain) made from the sale or transfer of land. Effective January 2023, the rate of CGT is 15% of the net gains.

Similarly, CGT applies regardless of whether the transfer is a gift or to a minor.

3. Trust Taxation (Where Land is Held for a Minor)

If the land is held in a trust for a minor, taxation shifts from the child to the trust or trustee, depending on the structure and income generated. If the land generates income (e.g., rental property), the trustee is responsible for declaring and paying income tax. The trust may also have withholding tax liabilities if payments are made to contractors or suppliers. Further, the trust must file annual tax returns, even if no income is earned.

4. Gift Tax?

Kenya does not currently impose a gift tax, but donations of high-value assets like land may be scrutinised by KRA under income tax laws or anti-avoidance provisions.

• Documentation: Prepare a proper declaration of gift, complete with land transfer instruments and valuation reports.
• Disclosure: It’s prudent to disclose gifts in your annual tax return under the relevant section for non-taxable income, even if no tax is payable.

5. Future Tax Liabilities on the Property

Children who receive land will, upon reaching the age of majority (18), become responsible for:

• Income Tax on any earnings from the land (e.g., rent, agricultural profits).
• Capital Gains Tax if they later sell the property.
• Land Rates and Rent: These are payable annually to the county government or the Commissioner of Lands and may become the child’s responsibility.

Summary Table of Key Taxes

Tax Type	Who Pays	When Applicable	Rate
Stamp Duty	Buyer (parent/child)	On transfer of land	2% (rural) or 4% (urban)
Capital Gains Tax	Seller (parent)	On transfer of land, even as a gift	15% of the net gain
Trust Income Tax	On the transfer of land	On income earned by property held in trust	Graduated individual rates
Land Rates & Rent	Registered owner (trustee/child)	Trustee (on behalf of the trust)	Varies by location
Gift Tax	Not applicable	N/A	N/A (as of 2025)

Mistakes to Avoid

1. Registering Land in a Minor’s Name Without a Trust

This creates ambiguity in ownership and can lead to nullification of the title or delays in future transfers.

2. Verbal Agreements When Buying for Adult Children

Many parents fund land purchases informally for adult children, and later disputes arise with their siblings or other family members. To ensure the property is never under dispute, document such financing or make your intentions clear in writing, for example, through a gift declaration, a loan agreement, etc Further, if property is held under a joint tenancy, do not include it in your will.

3. Using a Child’s Land as Security Without Legal Authority

If a child’s land is held in trust, the trustee cannot sell, lease, or mortgage it without court approval or unless authorised to do so by the trust deed. This poses significant challenges if such a sale, lease or mortgage is intended to provide for the child.

4. Family Conflicts and Succession Claims

Land bought in a child’s name but not properly documented may be dragged into succession disputes. For example, if held under a Tenancy in Common intentionally or by mistake, that property, or at least a portion of it, belongs to the parent and must be distributed among their heirs as such.

Best Practices When Buying Land for Children

• Always use a written trust deed for minors
• Document the source of funds, especially if not gifting outright
• Draft a gift deed or agreement if buying for an adult child
• Update your will to reflect property ownership structures
• Avoid joint registration unless succession plans are in place

Frequently Asked Questions (FAQs)

1. Can I register land in my baby’s name in Kenya?

No, not directly. The land must be registered in trust for the baby with you or another adult as trustee.

2. What happens to the land in my child’s name if I die?

If it was a gift and they are the legal owner, it stays theirs. If it was held in trust, your will or trust deed will dictate the next steps.

3. Can I sell land I bought in my child’s name?

Not unless you’re the legal owner or a trustee with the power to sell. If the land is in their name, they must consent or initiate the transaction.

4. Should I make a will after buying land for my children?

Yes. A will ensures the property is not subject to dispute and helps protect trust arrangements.

5. Is stamp duty payable when transferring land to my child?

Yes. Stamp duty is payable whether the transfer is a gift or a sale. The applicable rate is 4% for urban land and 2% for agricultural or rural land, based on the market value assessed by a government valuer.

6. Do I have to pay Capital Gains Tax when gifting land to my child?

Yes. The Kenya Revenue Authority treats gifts as a form of disposal. Capital Gains Tax (currently 15%) is calculated based on the gain between the acquisition price and the current market value at the time of transfer.

7. Can I avoid taxes by putting the land in a trust for my child?

No, taxes cannot be avoided through a trust. While the structure may provide estate planning advantages, trusts are separate tax entities and must comply with income tax, capital gains tax (if applicable), and annual return obligations.

8. Does my child pay tax when they inherit or receive land?

There is no gift tax in Kenya currently. However, once the child becomes the legal owner, they may be liable for land rates, rent, and any taxes on income generated from the property.

9. Is there any way to transfer land to my child tax-free?

At present, no specific exemptions exist for transfers to children. Unlike spousal transfers or divorce settlements, parent-to-child transfers are fully taxable under normal provisions of the Stamp Duty Act and the Income Tax Act.

Conclusion

By buying property for your child, you secure their future, particularly if you are no longer there. Whether you’re gifting land to a minor or helping an adult child acquire property, the law has strict procedures and potential risks that can expose you to financial loss, fraud, or legal battles.

Need Help Buying Land For Your Children?

At Wacu Mureithi & Co. Advocates, we help Kenyan parents navigate land ownership issues and set up protective structures for their children’s future. Whether you’re gifting land or planning a trust, our team ensures your legacy is legally sound and secure.

Schedule A Consultation with our team, Email Us or fill out the form on our Contact Us page for more personalised assistance.