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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THE AFRICANVESTOR

A team specialized in real estate investing in African countries

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 The AfricanVestor, 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, Zanzibar, and Arusha. 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 Kenyan legally buy land in Tanzania?

Kenyans cannot legally own land outright in Tanzania under the Land Act of 1999.

Tanzania restricts direct land ownership exclusively to Tanzanian citizens. However, Kenyans can access land through derivative rights, which are long-term leases lasting up to 99 years.

These leases are available through the Tanzania Investment Centre (TIC) for approved investment projects. The minimum investment requirement is USD 500,000, and the TIC must approve all transactions involving foreign investors.

Joint ventures with Tanzanian partners or company structures registered in Tanzania also provide pathways for Kenyans to access land for investment purposes.

As of September 2025, this legal framework remains unchanged and applies to all foreign nationals, including Kenyans.

What types of land can foreigners access in Tanzania?

Tanzania classifies land into four main categories, each with different accessibility rules for foreigners.

General Land, located in urban areas, is the most accessible to foreigners through derivative rights for investment purposes. This includes land for commercial, residential, agricultural, and tourism development projects.

Village Land cannot be directly acquired by foreigners and must first be converted to General Land through official processes before foreign investment becomes possible. This conversion requires government approval and community consent.

Reserved Land is strictly off-limits to all private ownership and includes national parks, forest reserves, and government facilities. Coastal Areas have limited access and often require special approval due to environmental and strategic considerations.

The vast majority of foreign land transactions in Tanzania involve General Land in urban centers where infrastructure and legal frameworks are more established.

Are there specific regions where foreigners are allowed to purchase land?

Several regions attract the highest foreign investment and offer the most straightforward processes for land acquisition.

Dar es Salaam remains the top destination, with popular neighborhoods including Masaki, Oyster Bay, Mbezi Beach, and Kigamboni. These areas offer established infrastructure and proximity to business districts.

Zanzibar operates under more flexible property laws compared to mainland Tanzania, making it particularly attractive for tourism-related investments. The island's high tourism demand drives consistent property appreciation.

Arusha serves as the gateway to safari tourism and attracts significant foreign investment in hospitality and related services. Dodoma, as the administrative capital, sees growing interest due to government-related development projects.

Coastal cities like Tanga and Mtwara are emerging as strategic locations due to infrastructure developments and port expansions that enhance their investment potential.

What is the process for foreigners to acquire land in Tanzania?

The land acquisition process for foreigners follows a structured five-step procedure.

First, identify suitable land classified as General Land or Village Land that can be converted to General Land. This initial step requires thorough due diligence on land status and ownership history.

Second, register your investment project with the Tanzania Investment Centre and secure a Certificate of Incentives. This requires demonstrating a minimum USD 500,000 investment and providing detailed business plans.

Third, TIC facilitates the actual land acquisition by coordinating with local authorities, relevant ministries, and land commissioners. This stage involves official approvals and compliance verification.

Fourth, complete legal and due diligence requirements including environmental impact assessments, community compensation arrangements, and comprehensive land surveys.

Finally, sign the lease or derivative agreement for up to 99 years of occupancy rights, which provides legal security for your investment without actual ownership transfer.

What documents are required to buy land in Tanzania?

The documentation requirements for foreign land acquisition in Tanzania are comprehensive and must be meticulously prepared.

Document Category	Specific Requirements	Processing Notes
Personal Identity	Valid passport, visa, police clearance from Kenya	Police clearance must be recent (within 6 months)
Investment Documentation	TIC Certificate of Incentive, detailed business plan	Business plan must justify minimum USD 500,000 investment
Financial Verification	Bank statements, proof of investment funds	Must demonstrate liquid capital availability
Property Documentation	Land survey certificate, title verification	Survey must be conducted by licensed surveyor
Legal Agreements	Notarized lease agreement, company registration	All agreements require legal review
Compliance Certificates	Environmental compliance, tax clearance	Required for projects above certain thresholds

All foreign documents require apostille certification for legal recognition in Tanzania. The complete documentation process typically takes 3-6 months when properly managed.

Can a Kenyan buy land in Tanzania without being physically present?

Physical presence is generally necessary for key steps in the land acquisition process.

Critical activities requiring personal attendance include document signing before notaries, opening bank accounts for the transaction, and conducting essential site inspections. These steps cannot be completed remotely due to Tanzanian legal requirements.

Some law firms offer remote facilitation services through power of attorney arrangements, allowing certain preliminary steps to be handled without physical presence. However, this approach carries increased risks and potential delays.

Personal oversight is highly recommended throughout the process to ensure proper due diligence, avoid fraud, and maintain direct communication with all parties involved in the transaction.

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

Is it possible to buy land for residential or commercial use?

Land can be leased for both residential and commercial purposes, but specific conditions apply.

All land use must be tied to an approved investment project registered with the Tanzania Investment Centre. Personal residences are only permitted when linked to a qualifying business investment that meets the minimum threshold requirements.

Commercial developments including hotels, resorts, office buildings, and retail centers are the most common approved uses. Agricultural investments for large-scale farming operations also qualify for foreign land access.

Mixed-use developments combining residential and commercial elements are permitted provided they form part of a comprehensive investment strategy that demonstrates economic benefit to Tanzania.

The intended use must be clearly specified in the initial TIC application and cannot be easily changed without additional approvals and potential penalties.

What are the typical mistakes and pitfalls foreigners face?

Several common errors can derail foreign land acquisition attempts in Tanzania.

1. **Misunderstanding Village Land regulations** - Attempting to purchase customary land without proper conversion processes leads to legal disputes and invalid transactions.2. **Confusing lease rights with ownership** - Failing to understand that derivative rights provide occupancy, not ownership, creates unrealistic expectations and potential legal issues.3. **Inadequate title verification** - Not properly checking existing permits, outstanding claims, and local authority documentation results in disputed ownership.4. **Insufficient due diligence on lease terms** - Not verifying remaining lease duration on existing properties can leave buyers with unexpectedly short tenure periods.5. **Working with unreliable intermediaries** - Using unverified agents or legal representatives increases fraud risk and can result in financial losses or invalid transactions.

Professional legal representation and thorough due diligence are essential to avoid these costly mistakes that could jeopardize your entire investment.

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.

What are the most common purposes for foreign land purchases?

Foreign investors typically pursue land acquisition for four primary investment categories.

Hotels and resorts represent the largest segment, driven by Tanzania's growing tourism industry and government incentives for hospitality development. These projects often receive preferential treatment due to their foreign exchange earnings potential.

Commercial developments including office complexes, retail centers, and mixed-use projects serve the expanding urban population and growing economy in major cities like Dar es Salaam and Arusha.

Agricultural investments focus on large-scale farming operations, particularly for export crops and food processing facilities that contribute to Tanzania's agricultural modernization goals.

Residential projects targeting expatriate communities, mining sector employees, and tourism industry workers address housing shortages in key economic centers while generating steady rental income.

Each category requires specific TIC approval criteria and must demonstrate clear economic benefits to qualify for foreign land access rights.

What are the average prices for land in Tanzania?

Land prices in Tanzania vary significantly based on location, classification, and development potential.

Location	Average Price per m²	Typical Range
National Average (Residential)	$1,200	$800 - $2,000
Dar es Salaam (Prime Areas)	$3,820	$2,500 - $5,500
Zanzibar (Tourist Zones)	$1,900	$1,000 - $2,800
Arusha (Commercial)	$1,500	$1,000 - $2,200
Dodoma (Government Area)	$900	$600 - $1,400
Secondary Cities	$600	$400 - $1,000

Median new house prices range from $70,000 to $90,000 as of 2024, with luxury properties in prime locations commanding significantly higher prices. Proximity to economic centers, coastal areas, and infrastructure developments drives price premiums across all categories.

What taxes, fees, and additional costs apply to land purchases?

Multiple fees and taxes apply to foreign land transactions in Tanzania, typically totaling 4-5% of the property value.

Notary fees constitute the largest expense at 3% of the property value, while stamp duty adds another 1% of the transaction value. Registration fees cost 0.25% of the property value, and real estate agent commissions range from 5-10% depending on the property type and location.

Legal fees typically range from 1-2% of the transaction value, while land valuation fees cost 0.1% of the assessed property value. Annual land rent varies by property size and location, representing an ongoing cost throughout the lease period.

The premium for granted right of occupancy costs 0.25% as of 2023 reforms, reduced from previously higher rates. Additional costs include development levies and construction permits for new building projects.

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

Can foreigners pay cash or access financing options?

Foreigners can pay cash for land transactions and also access local mortgage financing.

Cash payments provide the simplest transaction process and often result in better negotiated prices with sellers who prefer immediate settlements. Bank transfers through established Tanzanian banks ensure proper documentation and legal compliance.

Mortgage loans are available through local banks, covering up to 90% of the property value with interest rates averaging 15-17% as of September 2025. Maximum loan periods extend to 15 years for qualified borrowers.

Major banks including NMB Bank and CRDB Bank offer foreign investor mortgage programs with specific requirements for income verification and collateral. Engaging a legal advisor is recommended to navigate financing terms and currency risk considerations.

Down payment requirements typically range from 10-30% of the property value, with higher percentages often securing better interest rates and loan terms for foreign borrowers.

What are the best tips for securing a mortgage in Tanzania?

Successfully securing a mortgage as a foreign investor requires strategic preparation and local market knowledge.

1. **Work with established local banks** - Focus on NMB Bank, CRDB Bank, and other major institutions with experience in foreign investor financing rather than smaller regional banks.2. **Prepare comprehensive documentation** - Provide detailed proof of income, complete investment plans, and verified financial capacity well beyond minimum requirements.3. **Engage reputable legal and real estate professionals** - Work with licensed attorneys and established real estate agents who understand foreign investor requirements and bank preferences.4. **Understand currency and repayment implications** - Consider exchange rate fluctuations between Kenyan Shillings and Tanzanian Shillings when planning repayment schedules.5. **Build local banking relationships** - Establish accounts and credit history with Tanzanian banks before applying for mortgage financing to demonstrate financial stability.

Early engagement with multiple lenders allows comparison of terms and identification of the most favorable financing options for your specific investment project and financial profile.

What is the long-term outlook for Tanzania's land market?

Tanzania's land market shows strong positive indicators for sustained growth through 2028 and beyond.

Market projections indicate a compound annual growth rate of 4.74% from 2024-2028, driven by economic expansion, urbanization, and infrastructure development. Government reforms are modernizing real estate regulation and improving investor protection.

Foreign and domestic investment continues rising, particularly in major cities and Zanzibar, where tourism and commercial development drive consistent demand. Stable inflation rates and economic expansion support the positive outlook for property as a long-term investment vehicle.

Infrastructure projects including the Standard Gauge Railway, port expansions, and road improvements enhance land values in connected regions. The government's commitment to improving business environment rankings attracts additional foreign direct investment.

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

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. The AfricanVestor - Can Kenyans Buy Land in Tanzania
2. The AfricanVestor - Foreigners Owning Land in Tanzania
3. Tanzania Investment Centre - Foreign Land Ownership FAQ
4. LinkedIn - Tanzania Land Law for Foreign Investors
5. Tanzania Invest - Acquiring Land in Mainland Tanzania
6. SSRN - Tanzania Land Law Research Paper
7. Coldwell Banker - Tanzania Real Estate Investment 2025
8. Tanzania Investment Centre - Land Acquisition Process
9. The AfricanVestor - Moving to Tanzania and Buying Property
10. The AfricanVestor - Tanzania Real Estate Market Analysis