Allotment letter vs title deed in Kenya: what each one proves and what to check

Many plots in Kenya, especially in older estates and towns, are offered for sale with an allotment letter instead of a title deed. Sellers sometimes describe the two as almost the same thing. They are not, and understanding the gap between them can save you from paying for land that was never legally yours to buy.

This guide explains the difference, how an allotment letter becomes a title, and what to check before you hand over any money.

What an allotment letter is

An allotment letter is an offer from a public body to allocate a specific plot of public land to a named person, subject to conditions. Historically these were issued by the Commissioner of Lands. Today, allocation of public land involves the National Land Commission acting for the national or county government under the Land Act 2012. Former local authorities, such as the defunct City Council of Nairobi, also issued allotment letters for plots in their schemes.

A typical allotment letter:

• Names the allottee and identifies the plot, in older letters often by an unsurveyed plot number and a reference to a Part Development Plan (PDP)
• Sets out conditions, such as paying a stand premium, annual ground rent, survey fees and other charges within a stated deadline
• States the lease term if the plot is to be leasehold
• May require the allottee to accept the offer in writing

The key point is that an allotment letter is an offer, not ownership. Kenyan courts have repeatedly held that an allotment letter on its own does not confer title to land. Rights only become secure once the conditions are met and the interest is registered.

The word "allotment letter" is also used by some private developers selling off-plan apartments, and land-buying companies may issue share certificates or ballot papers. These are private contractual documents, not government offers, and they are not titles either. See our off-plan property checklist.

What a title deed is

A title deed is the document issued once land is registered in the owner's name at the land registry. Under the Land Registration Act 2012, it comes in two main forms:

• Certificate of title for freehold land
• Certificate of lease for leasehold land

Section 26 of the Land Registration Act 2012 says a certificate of title is to be taken by all courts as prima facie evidence that the person named as proprietor is the absolute and indefeasible owner. That protection is not absolute: a title can be challenged if it was obtained by fraud or misrepresentation to which the holder was a party, or acquired illegally, unprocedurally or through a corrupt scheme. Article 40(6) of the Constitution also says property rights do not extend to property found to have been unlawfully acquired.

Titles issued under the older, now-repealed land statutes remain valid.

Allotment letter vs title deed: side by side

Why buying on an allotment letter alone is risky

• Conditions may never have been met. If the stand premium and other charges were not paid in time, the offer may have lapsed.
• Double allocation. The same plot can appear on more than one allotment letter, and only one person can end up with the title.
• The land may not be available for allocation. Road reserves, riparian land, and land set aside for schools, markets or playgrounds have been irregularly allocated in the past. Such allocations can be revoked and buildings demolished.
• Forgery. Allotment letters are easier to fake than a registered title because there is no registry entry to compare against.
• No finance. Banks and saccos generally cannot register a charge over land that has not been registered, so you may struggle to borrow against it or sell it to a buyer who needs a mortgage.

For more warning signs, read our guide to land fraud red flags in Kenya.

How an allotment letter becomes a title deed

The exact steps depend on the issuing authority and when the letter was issued, but the process generally looks like this:

1. The allottee accepts the offer in writing within the deadline.
2. The allottee pays the stand premium, ground rent and other charges set out in the letter and keeps the official receipts.
3. If it has not already been surveyed, the plot is surveyed by a licensed surveyor, and the survey is approved by the Director of Surveys.
4. A lease (for leasehold plots) is prepared; for allocations under the Land Act 2012, the National Land Commission prepares and executes the lease and sends it to the Chief Land Registrar.
5. The lease is registered at the land registry and a certificate of lease is issued.

Only at step 5 does the allottee hold a registered interest. Fees at each stage vary by plot and authority, so confirm current amounts with the Ministry of Lands, the National Land Commission or the county.

How to verify an allotment letter before you pay

If you still want to consider a plot sold on an allotment letter, do all of the following, ideally through an advocate:

1. Get certified copies, not photocopies, of the allotment letter, the letter of acceptance and every payment receipt.
2. Confirm the letter with the issuing authority. Write to, or visit, the Ministry of Lands, National Land Commission or county lands office and ask them to confirm in writing that the allotment is genuine and current, and that the conditions were met.
3. Check the Part Development Plan. Ask the physical planning office to confirm the PDP was approved and that your plot's intended use matches.
4. Check survey records at Survey of Kenya or the county survey office to see whether the plot has been surveyed and whether a different number has been assigned.
5. Visit the plot with a surveyor and confirm the beacons match the PDP. Talk to neighbours and the local chief about any disputes.
6. Check whether a title already exists. If the land has been registered, do an official search. Our guide on how to do a land search in Kenya explains how.
7. Get the original allottee's consent. If the seller is not the original allottee, ask for the full chain of transfers and confirm whether the authority recognised each one.
8. Use a written sale agreement drafted by your own advocate, with payment held until the authority confirms the allotment and, ideally, until the title is processed.

This guide is general information, not legal advice. An advocate admitted in Kenya can check documents and the official records on your behalf.

If the seller has a title deed instead

A title deed is far stronger, but it still needs checking. Do an official search, compare the title with the registry records, inspect the land and check for cautions, charges or court orders. See how to verify a title deed in Kenya.

Frequently asked questions

Is an allotment letter proof of ownership in Kenya?

No. An allotment letter is a conditional offer to allocate public land. Kenyan courts have held that it does not on its own confer title. Ownership is secured when the interest is registered and a certificate of title or lease is issued.

Can I sell land that I hold on an allotment letter?

Some people do sell plots held on an allotment letter, but the Supreme Court has held that an allottee cannot pass title to a third party until the land is registered, so the buyer takes on serious risk. Any sale should be confirmed with the issuing authority, and both parties should use advocates. It is safer to complete the process to title first.

Can I get a mortgage using an allotment letter?

Generally not. Lenders secure loans by registering a charge against a registered title or lease, which is not possible before the land is registered. Ask your lender directly about their requirements.

How long does it take to get a title from an allotment letter?

There is no fixed timeline. It depends on whether conditions were met, whether survey is complete, and how quickly the Ministry of Lands, the National Land Commission or the county processes the file. Ask the relevant office for the current status of your file.

Sources

• www.parliament.go.ke/sites/default/files/2017-05/Land_Registration_Act.pdf
• www.parliament.go.ke/sites/default/files/2017-05/LandAct2012.pdf
• new.kenyalaw.org/akn/ke/judgment/keelc/2024/1790/eng@2024-03-14