The U.S. government has raised concerns over fraudulent title deeds in Kenya, marking a setback to the country’s needs for foreign direct investment (FDI).
In its 2024 National Trade Estimate (NTE) to President Trump and Congress, the Office of the United States Trade Representative (USTR) – which advises the U.S. president on trade policy – flagged fake land ownership documents as a key investment obstacle in Kenya for the first time.
The report, which highlights key tariff and non-tariff barriers by trader partners, informs U.S. trade negotiations with foreign nations and indicates that the issue of counterfeit land titles is likely to surface during future trade and investment discussions between Washington and Nairobi.
“The 2010 Kenyan Constitution prohibits foreigners from holding freehold land title anywhere in the country, permitting only leasehold titles of up to 99 years.
The process for leasing developed land and property is clear and established, but the process for obtaining leasehold title of undeveloped land is opaque and unreliable. For undeveloped land, investors risk receiving fake title deeds or leasing a plot with multiple titles and unauthorized sales.”
  – USTR
For decades, land in Kenya has been more than just property – it’s a deeply symbolic and politically charged asset tied to identity, wealth, and power. But the chronic lack of transparency and accountability in land administration has turned what should be a source of security into one of the most contested and risky sectors in the country.
Moreover, agriculture – which contributes 25% to the country’s GDP – has increased the demand for land. This surge coincides with fresh demand from the real estate industry, fueled by rapid urbanization and a heightened interest in owning homes.
According to local reports, at the heart of the crisis is a sophisticated network of rogue brokers, intermediaries, and corrupt government officials working in collusion to produce and sell fake or double-registered title deeds.
The syndicates manipulate land registry records to create counterfeit documents that are then used to claim ownership, secure loans, or resell the same land to multiple buyers. The consequences have been dire: a wave of court battles, widespread financial losses, and, in some tragic cases, even loss of life.
Banks, businesses, and individuals have lost billions of shillings due to these scams, with some institutions unknowingly financing loans backed by fake land documents.
In 2019, tier 1 banks, NCBA and Equity Bank, suffered losses of almost KES 500 million ($3.8 million) due to a title deed fraud scheme, following a Court of Appeal decision that granted Co-operative Bank of Kenya ownership rights to a property used as collateral for loans issued by the three banks.
🇰🇪 BANKING | Kenyan Banks Report $483 Million in Forex Transaction Losses in 2024
This marked a sharp reversal from 2023, when Kenyan banks saws gains of $246 million.https://t.co/GhrK29fAIx pic.twitter.com/FGUaHUaN0K
— BitKE (@BitcoinKE) April 8, 2025
In response to the crisis, the Ministry of Lands is undertaking comprehensive reforms aimed at restoring trust in Kenya’s land administration system.
A central component of this initiative is the digitization of land records, an ambitious effort to transition decades-old paper documents to an online platform where titles can be registered, verified, and accessed remotely.
🇿🇦 USE CASE | South African ‘Big 4’ Bank, First National Bank, Considers Blockchain to Digitize Over 1 Million Customer Title Deeds
South Africa reportedly has a backlog in processing title deeds, currently standing at over a million houses, which amounts to an estimated R242…
— BitKE (@BitcoinKE) October 2, 2023
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