Tourism and Title Deeds: Balancing Investment and Regulation in Kenya

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An Italian investor in Watamu, Kilifi County, has expressed support for the Lands Cabinet Secretary’s initiative to investigate the legality of foreign ownership of freehold title deeds. Pasquale Tirito, chairman of Jacaranda Beach Resort, emphasized the need for a fair process, noting that some foreigners acquired title deeds before the 2010 Constitution.
During a recent inspection of the Mombasa lands registry, Lands CS Zachariah Njeru raised concerns regarding foreigners holding freehold title deeds, which are now deemed illegal. Tirito clarified that the Constitution mandates that foreign-held freehold titles be converted to leasehold to regularize ownership. However, many investors contend that land acquired before the 2010 Constitution should remain freehold.
“It seems that all freehold land must be regularized, regardless of when it was transferred. I support this as it will clarify a controversial issue,” Tirito stated. He welcomed the plan to regulate title deeds in the coastal region, provided it does not unfairly penalize investors who purchased land based on legal advice prior to 2010.
Tirito emphasized the importance of reasonable timelines and government assistance in correcting irregularities. As an owner of several tourism resorts in Watamu, he urged the government to distinguish between private holiday homeowners and significant tourism investors. “Tourism investors need security for their investments, including construction costs, international contracts, and environmental care,” he noted.
He cautioned that unresolved land disputes could threaten investments that provide jobs for thousands of families. Tirito recommended that Kenya establish an office akin to the Zanzibar Investment Promotion Authority (ZIPA) to help investors navigate local laws, highlighting inconsistencies in legal advice and the backlog of land disputes in Kenyan courts.
Additionally, he called on the government, including the Ministry of Tourism, county governments, and the Kenya Revenue Authority, to address the issue of unlicensed holiday homes operating as tourism businesses. “In the Watamu-Malindi area alone, hundreds of properties rent to tourists without licenses, insurance, or safety compliance, depriving Kenya of significant tax revenue,” he stated.
Tirito warned that these unregulated businesses create unfair competition and divert essential resources from the country. He urged the government and the Tourism Regulatory Authority to enforce existing laws to prevent such practices.