The Law of Sectional Properties in Kenya

On 11th December 2020, the Sectional Properties Act, No. 21 of 2020 was enacted into law making major changes to the Sectional Properties Act, No. 3 of 2012. Following this repeal, the new changes confirm to the provisions of the 2010 Constitution of Kenya, the Land Act No. 6 of 2012 and the Land Registration Act No. 3 of 2012.

The Sectional Properties Act, No. 21 of 2020 incorporates ad-hoc dispute resolution committees by companies managing sectional properties, the assessment of rates be done considering each of the units as a separate piece of land and the conversion of units via formal registration of geo-referenced long term sub-lease according to the provisions of the Land Registration Act.

The Sectional Properties Act, No. 21 of 2020 requires conversion of all long-term subleases into units within two (2) years of the Act commencing. Owners will not incur additional Stamp Duty upon revision if they paid the requisite stamp duty when registering the sub-lease. Failure to comply with this provision one is found guilty of an offence and shall be liable on conviction to a fine of not exceeding Kenya Shillings Two hundred and Fifty Thousand (KES 250,000/=).

On management of sectional properties by corporations, the Sectional Properties Act requires owners to register the Corporation consisting of the owners of units in the parcels to which the sectional plan relates. Therefore, if it fails to comply with the Act, each member of the board who is knowingly a party to the failure is guilty of an offence and shall be liable to a fine not exceeding Kenya Shillings two hundred and fifty thousand (KES 250,000/=).

The Act comprehensively provides for the requirements which the sectional plan should meet in order to be registered. Accordingly, the sectional plan must be prepared by a surveyor and be registered.

Authors:
Ms. Faith Gituma, a Legal Assistant/Trainee with the Firm and Mr. K. Njoroge Ng’ang’a, Partner and Head of the Corporate Commercial and Real Estate Department.

This note does not constitute legal advice, neither is it a Legal Opinion. For more information on sectional properties and the now novel concept on sectional titles or any further queries on commercial or real estate matters, email us on info@kn-partners.com or telephone us on +254 20 2000431/+254717554430