Reasons Why a KRA PIN is Useful In LAND TRANSACTION
Owning land in Kenya is characterized by signing key legal documents and One of the most important documents you need to have is KRA PIN.
Preparation of the documents is done by Lawyers in conjunction with the real estate company selling land or person selling you the land.
It is important to ensure you sign an Offer Letter, Sale Agreement, and Title Deed Transfer Form when purchasing land. This ensures that your interests are protected legally.
To some who have bought land before, they have been requested to share their PIN details with their investment company.
While a few understand the purpose of the same others still does not understand the role of a KRA PIN in land ownership.
This blog intends to shed light on the purpose of a KRA PIN in land transactions in Kenya.
What is a KRA PIN?
Basically, this is a unique personal identification number given by Kenya Revenue Authority hence the abbreviation KRA PIN.
The purpose is to uniquely identify you for purposes of conducting business with the Kenya Revenue Authority and other government agencies such as the Ministry of Lands and other providers of government services.
Why is a KRA PIN useful in Land Transaction?
The Lands Registry is part of government agencies. To transfer land ownership from either a company to an individual or between individuals, a PIN is a requirement.
Whether the land under purchase is leasehold or freehold, the PIN is required to finalize this process.
Apart from land transactions, there are also other services that require the PIN. They include; payment of land rent, approval of building plans, registration of motor vehicles, registration of business names and companies, underwriting insurance policies among others.
Is your KRA PIN number safe with a real estate company?
This is a question that many would raise the moment they are requested to share their PIN.
However, rest assured that your confidential PIN is safe and secure and cannot be disclosed to third parties.
The purpose of the PIN is only for land transfer from the company’s name to your individual name and not for any other purpose.
How to obtain a KRA PIN
Whether living in Kenya or in the diaspora, it is easy and convenient to apply this PIN. Application of the same takes less than 5 minutes either using a phone or a computer.
You will only need to learn more about itax.kra.go.ke and get it in a fast and easy way. The portal also allows you to recover your password in case you forget.