Kenya Property Professionals Compliance Checklist 2025: Are You Covered?

Kenya property law and compliance requirements changed significantly between 2023 and 2025. This checklist covers the key obligations for advocates, real estate agents, and property developers operating in the Kenya market.

Use it as a diagnostic, not a definitive compliance audit. Consult a compliance specialist for a full assessment.

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Section A: Registration and Regulatory Status

For advocates:

• LSK practising certificate renewed for current year
• FRC registration completed as a DNFBP reporting entity (mandatory under POCAMLA 2025)
• MLRO (Money Laundering Reporting Officer) appointed and documented
• Firm registered in the correct category on the FRC portal

For real estate agents:

• EARB registration current and practising certificate valid
• FRC registration completed as a DNFBP reporting entity
• MLRO appointed (for larger agencies)

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Section B: AML/CFT Programme

• Written AML/CFT compliance programme in place
• Customer Due Diligence (CDD) procedures documented
• Enhanced Due Diligence (EDD) procedures for high-risk clients documented
• Source of funds verification procedure in place
• Suspicious Transaction Report (STR) filing procedure documented
• 7-year record retention policy in place
• Staff AML/CFT training conducted and documented

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Section C: Post-Sehmi Due Diligence Standard

For each property transaction, does your file contain:

• Official title search (dated within 30 days of completion)
• Physical registry file review documenting root-of-title trace to original allocation
• Court process search at relevant court registry
• Gazette search covering parcel and area
• Confirmation of seller's identity through independent means (not just documents provided by seller)
• For agricultural land: LCB consent documented
• For matrimonial property: spousal consent documented
• For inherited land: succession documentation confirming authority to sell

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Section D: Client CDD Documentation

For each client in a property transaction, does the file contain:

• Client identity verified (certified copy of ID, passport)
• For companies: beneficial ownership identified and documented
• Source of funds confirmed and documented
• Risk assessment (low/medium/high) documented with basis
• For PEPs or high-risk clients: EDD documentation completed

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Section E: Independent Verification Evidence

Does your matter file contain documented evidence of independent verification separate from what the client or seller provided?

• Litmus verification report or equivalent independent verification
• Section 106B certificate for electronic records (if applicable)
• Verification dated within a reasonable period before completion

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Section F: Record-Keeping

• Matter files retained for 7 years from transaction completion
• AML/CFT training records retained
• STR filing records retained (separately from matter files if required by FRC guidance)
• Client identification records accessible for FRC examination

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Section G: Enforcement Risk Assessment

• Any FRC penalty notices received and responded to
• FRC examination correspondence documented
• Known non-compliance areas identified with remediation plan

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Key Deadlines

March 2026 FRC DNFBP compliance deadline has passed. If your firm has not registered, you are overdue and potentially in violation.

FRC examinations of DNFBP firms in the property sector are ongoing. An unregistered or non-compliant firm is at risk of a KES 200,000-250,000 penalty notice.

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Litmus verification reports (with Section 106B certificates) provide the documented independent verification evidence needed for Section E above. Standard verification: KSh 21,500 per transaction.

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This article is for general information only. It does not constitute legal advice. For full compliance assessment, consult a Kenya advocate specialising in financial crime and regulatory compliance.