Can a Kenyan buy land in Tanzania?

Authored by the expert who managed and guided the team behind the Tanzania Property Pack

Everything you need to know before buying real estate is included in our Republic of the Congo Property Pack

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THEAFRICANVESTOR

A team specialized in real estate investing in African countries (Tanzania, Kenya, Uganda, Rwanda, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Tanzania. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheAfricanVestor, we explore the Tanzanian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Dar es Salaam, Arusha, and Dodoma. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

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Grace Makoye 🇹🇿

Manager of Operations, Zinza Real Estate

Grace Makoye is a real estate expert and Manager of Operations at Zinza Real Estate. She helps buyers and investors navigate Tanzania's property market, from commercial deals to high-yield investments. With her expertise, you'll find the right property hassle-free.

Can a foreigner legally buy land in Tanzania, and does that include Kenyan citizens?

No, foreigners including Kenyan citizens cannot legally buy land outright in Tanzania.

Under Tanzania's Land Act of 1999, all land is public property vested in the President as trustee for Tanzanian citizens. Section 20(1) of the Land Act explicitly limits direct land ownership to Tanzanian citizens only, regardless of nationality.

However, foreign investors including Kenyans can access land through derivative rights granted by the Tanzania Investment Centre (TIC) for approved investment projects. These derivative rights function as long-term leases up to 99 years and allow foreigners to occupy and use land for specific investment purposes. The minimum investment requirement for foreign investors is typically USD 500,000.

As of June 2025, proposed amendments to the Land Act may soon allow Tanzanian diaspora with special status cards to own land, but these changes don't yet apply to other foreign nationals like Kenyans.

It's something we develop in our Tanzania property pack.

What types of land are foreigners allowed to buy in Tanzania, and which ones are strictly off-limits?

Foreigners can access general land for investment purposes but cannot acquire village land or reserved land directly.

Tanzania categorizes land into three types: general land (2% of Tanzania's territory, mainly urban areas), village land (customary land under village management), and reserved land (national parks, forests, government reserves). Foreign investors can only obtain derivative rights on general land through TIC approval for investment projects.

Land Type	Foreign Access	Conditions
General Land	Yes	Derivative rights for investment only
Village Land	Limited	Must be converted to general land first
Reserved Land	No	National parks, forests strictly prohibited
Urban Commercial	Yes	Through TIC for business development
Agricultural Land	Yes	Large-scale farming projects only
Tourism Zones	Yes	Hotel, resort development approved
Coastal Areas	Limited	Special approvals required

Are there any land ownership structures that allow foreigners to bypass restrictions?

Yes, foreigners can access land through derivative rights, joint ventures, or company structures, though they cannot bypass the fundamental restriction on direct ownership.

The main legal structures include: derivative rights from TIC (long-term leases up to 99 years for investment), joint ventures with Tanzanian citizens or companies, incorporating a Tanzanian company with at least 51% Tanzanian ownership, and leasehold agreements with existing Tanzanian landowners.

These structures don't bypass the ownership restriction but provide legal pathways for land access. The derivative rights system is the most common approach, requiring TIC registration and minimum investment thresholds. All structures require compliance with Tanzanian law and typically involve ongoing obligations such as annual land rent and development requirements.

Some investors attempt to use Tanzanian nominees or shell companies, but these arrangements carry significant legal risks and aren't recommended by legal professionals.

It's something we develop in our Tanzania property pack.

What are the exact legal steps a foreigner must follow to acquire land in Tanzania?

1. **Land Identification and Due Diligence** - Identify suitable general land for your investment project - Conduct thorough title searches and verify ownership - Check for existing encumbrances or disputes - Confirm zoning compliance and development permissions2. **TIC Registration and Investment Approval** - Prepare comprehensive business plan and proof of funds - Apply for Tanzania Investment Centre certificate - Meet minimum investment threshold (USD 500,000 for foreign investors) - Obtain Certificate of Incentive from TIC3. **Derivative Right Application** - Submit derivative right application to Commissioner for Lands - Provide TIC certificate and investment documentation - Specify intended land use, location, and development timeline - Pay required application fees and processing charges4. **Legal Documentation and Registration** - Execute derivative right agreement with government - Register the derivative right with Ministry of Lands - Obtain land survey certificate and title documentation - Complete environmental and social compliance assessments5. **Final Compliance and Development** - Open Tanzanian bank account for land-related transactions - Ensure compliance with local authority requirements - Begin development activities within specified timeframes - Maintain annual reporting and fee payments to relevant authorities

Do I need to be physically present in Tanzania to buy land, or can the whole process be done remotely?

Physical presence is typically required for key steps, though some processes can be initiated remotely.

You must be physically present in Tanzania for critical activities including signing legal documents before notaries, opening Tanzanian bank accounts (required for transactions), meeting with TIC officials and Commissioner for Lands, conducting site visits and due diligence inspections, and attending government meetings and approvals.

Some law firms offer remote facilitation services through power of attorney arrangements, allowing initial paperwork preparation and submission from abroad. However, most investors need to visit Tanzania at least 2-3 times during the process: once for initial site visits and TIC meetings, once for document signing and bank account opening, and once for final registration and compliance checks.

Remote processes may take longer and carry additional risks, so most experts recommend being present for crucial steps to ensure proper completion and avoid delays.

What documents and permits are required for a Kenyan to legally purchase land in Tanzania?

Kenyans need comprehensive documentation including investment approvals, legal documents, and compliance certificates.

**Essential Documents:**- Valid Kenyan passport and Tanzania visa- TIC Certificate of Incentive for investment project- Comprehensive business plan with financial projections- Proof of investment funds (minimum USD 500,000)- Bank statements and financial capacity verification- Police clearance certificate from Kenya- Derivative right application and supporting documents- Land survey certificate and title verification- Environmental compliance certificate (if required)- Local authority development permits and approvals**Additional Requirements:**- Notarized purchase or lease agreement- Tax clearance certificates- Company registration documents (if using corporate structure)- Professional references and business credentialsAll foreign documents must be properly authenticated and may require apostille certification. The documentation process typically takes 3-6 months depending on project complexity and government processing times.

Are there any specific zones or regions where foreigners commonly buy land in Tanzania?

Foreigners typically focus on economic zones, urban commercial areas, and tourism regions with established infrastructure.

**Popular Investment Zones:**- **Dar es Salaam:** Commercial real estate, office buildings, mixed-use developments- **Arusha:** Tourism infrastructure, hotels, safari lodges near national parks- **Zanzibar:** Beach resorts, hospitality projects, tourism development (separate legal framework)- **Mwanza:** Industrial projects, logistics facilities near Lake Victoria- **Special Economic Zones:** Export-oriented manufacturing, processing facilities**Investment Preferences by Sector:**- Tourism investors prefer coastal areas and regions near Serengeti, Ngorongoro- Agricultural investors target areas with good soil and water access- Industrial investors focus on zones with power infrastructure and port access- Commercial developers concentrate on urban centers with growing populationsRegional infrastructure development, such as the Standard Gauge Railway project, influences foreign investment patterns. Government incentive programs often target specific zones for development, making some regions more attractive for foreign investment than others.

What are the typical uses of land by foreigners in Tanzania?

Foreign land use in Tanzania primarily focuses on tourism, agriculture, and commercial development projects.

**Primary Investment Categories:**- **Tourism and Hospitality:** Hotels, safari lodges, beach resorts, eco-tourism facilities accounting for approximately 40% of foreign land investments- **Commercial Development:** Office buildings, shopping centers, mixed-use developments, particularly in Dar es Salaam and Arusha- **Agricultural Projects:** Large-scale farming, processing facilities, livestock operations requiring significant land areas- **Industrial Development:** Manufacturing plants, export processing facilities, logistics centers in Special Economic Zones- **Residential Development:** High-end housing projects, serviced apartments, though primarily tied to investment rather than personal useMost foreign investors focus on projects generating employment and foreign exchange, as these align with Tanzania's development priorities and TIC approval criteria. Purely speculative land holding without development plans is generally not approved for foreign investors.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Tanzania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How much does land cost on average in Tanzania, and how do prices vary by region and land type?

Land prices in Tanzania vary significantly by location, with urban areas commanding premium rates compared to rural agricultural land.

Region/Type	Price Range (USD per sq meter)	Typical Uses
Dar es Salaam CBD	$50-150	Commercial, office developments
Dar es Salaam Residential	$20-80	Housing, mixed-use projects
Arusha Commercial	$30-100	Tourism, business centers
Zanzibar Beachfront	$40-200	Hotels, resorts, tourism
Industrial Zones	$10-50	Manufacturing, processing
Agricultural Land	$1,000-5,000 per acre	Large-scale farming
Remote Rural Areas	$500-2,000 per acre	Agriculture, conservation

Additional costs include annual land rent (varies by location and use), development levies, and infrastructure connection fees. Leasehold arrangements typically require upfront payments plus annual rent throughout the lease term.

What are the total taxes, legal fees, government charges, and hidden costs involved in a land purchase as a foreigner?

Total transaction costs typically range from 8-15% of the land value, including various taxes, fees, and professional services.

**Government Charges and Taxes:**- Stamp duty: 1-3% of property/lease value- Registration fees: 0.5-1% of transaction value- TIC application and processing fees: $2,000-5,000- Survey and valuation fees: $1,000-3,000- Annual land rent: varies by location and land type (ongoing)**Professional and Legal Costs:**- Legal fees: 1-2% of transaction value- Due diligence and title search: $500-2,000- Environmental assessment: $1,000-5,000 (if required)- Local agent/consultant fees: 1-3% of value**Hidden and Additional Costs:**- Bank account opening and maintenance fees- Translation and document certification costs- Multiple government office visits and transportation- Potential community contributions for village land conversion- Infrastructure connection fees (water, power, telecommunications)- Insurance and security arrangements during developmentBudget for 12-18 months of carrying costs before generating revenue, as development approvals and construction can face delays.

Is it possible for foreigners to get a mortgage for land in Tanzania, and under what conditions and interest rates?

Mortgage financing for foreign land acquisition is extremely limited and challenging in Tanzania's banking sector.

Most Tanzanian banks are reluctant to provide mortgages to foreign investors for land purchases due to legal complexities around derivative rights and collateral enforcement. When available, mortgages typically require 40-60% down payments, interest rates range from 12-20% annually in USD or up to 25% in Tanzanian Shillings, and loan terms are usually limited to 10-15 years maximum.

Alternative financing options include developer financing arrangements, international bank pre-approval with local partnerships, joint ventures with local investors who can access domestic financing, and private lending arrangements with higher interest rates. Most foreign investors rely on cash purchases or offshore financing secured by other assets.

Some banks accept derivative rights as collateral, but the legal framework remains uncertain, making lenders cautious about enforcement in case of default.

It's something we develop in our Tanzania property pack.

Are there common pitfalls or scams that foreigners fall into when trying to buy land in Tanzania, and how can they be avoided?

**Common Pitfalls and Scams:**1. **Fraudulent Title Documentation** - Fake or forged title deeds and certificates - Multiple sales of the same land to different buyers - Sellers claiming ownership without proper documentation2. **Unclear Land Status and Disputes** - Land with pending court cases or family disputes - Village land not properly converted to general land - Encroachment issues and boundary conflicts3. **Inflated Prices and Hidden Costs** - Agents inflating prices for foreign buyers - Undisclosed government fees and compliance costs - Unexpected community compensation requirements4. **Regulatory Non-Compliance** - Proceeding without proper TIC approvals - Ignoring environmental and social impact requirements - Insufficient understanding of leasehold vs ownership rights**Prevention Strategies:**- **Always conduct thorough due diligence** through qualified local legal professionals- **Verify all documents** directly with Ministry of Lands and relevant authorities- **Use reputable, licensed real estate agents** with proven track records- **Engage qualified lawyers** specializing in foreign investment law- **Avoid cash transactions** and ensure all payments are traceable through banks- **Get independent valuations** to confirm fair market pricing- **Understand your rights** under derivative arrangements versus full ownership- **Budget for extended timelines** and potential additional costsNever proceed without proper legal representation and comprehensive due diligence, regardless of pressure from sellers or agents.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. TanzaniaInvest - Guide to Buying Land and Real Estate in Mainland Tanzania
2. Tanzania Investment Centre - Foreign Land Ownership FAQ
3. Bowmans Law - Proposed Amendments to Land Act
4. Mondaq - Guide for Foreigners on Land Ownership
5. The Africanvestor - Tips for Foreigners Buying Property in Tanzania
6. Gerpat Solutions - Land Acquisition by Foreigners
7. Mondaq - Comparative Look at Land Ownership in East Africa
8. Lexology - Acquisition of Land by Foreigners in Tanzania