Contributed By MMC Africa Law
There are no restrictions on granting security over real estate to foreign lenders. Similarly, there are no restrictions on repayments being made to a foreign lender under a security document.
Under the Foreign Investment Risk Review Modernization Act (FIRRMA), real estate transactions are subject to oversight by the Committee on Foreign Investment in the United States (CFIUS) if they relate to the purchase or lease by a foreign person of public or private real estate that is located in the US and is either located within an air or maritime port, or is in close proximity to a government or military installation.
FIRRMA empowers the CFIUS to prescribe regulations that define the term ‘foreign person’ and specify the criteria to limit the application of such clauses to investments made by certain categories of foreign persons, taking into consideration how a foreign person is connected to a foreign government and whether the connection may affect the national security of the US.
Kenyans seeking to invest in the US would have to fulfil the criteria to be developed by the CFIUS.