Here are 7 features of the new properties act to consider

The sectional properties law seeks to sub-divide buildings

into units owned by individuals and common property to

be owned jointly by the property owners. The Sectional

Properties Act, 2020 laws of Kenya (the “new law”) has

effectively repealed the Sectional Properties Act Of 1987,

laws Of Kenya (the “repealed law”).

The new law seeks to simplify the process of registration of

sectional properties and create an enabling environment

for investors and property owners. It seeks to guarantee

the rights of property owners by conferring absolute rights

to individual unit owners over their units and vest in them

the reversionary interests thereto.

We highlight the salient features of the Sectional

Properties Act, 2020 as below: –

1. Leasehold Tenure

The sectional properties law applies to land held on a

freehold tenure or on land held on leasehold tenure where

the intention is to confer ownership, The new law has

reduced the leasehold period to twenty-one years from the

forty-five years required under the repealed law.

2. Conversion of Sub-Leases

The new law further provides that all long term sub-leases

intended to confer ownership on a mansionette,

apartment, flat, town house or Office that were registered

before the new law shall be reviewed to conform with

section 54(5) of the LRA and the proprietors thereto shall

be issued with certificates of lease.

3. Registration and Mandate Of the Management

Corporation

Upon registration Of a sectional property, the individual

owners are constituted in a Corporation which is

responsible for management of the common property. The

new law provides that upon registration of the sectional

plan, the registrar shall issue a Certificate of Registration in

4. Dispute Resolution

Under the repealed law, any disputes relating to the

contravention of the by-laws of the Corporation were

referred to a tribunal established under the Landlords and

Tenants Act which was mandated to recover from an

errant owner or tenant a penalty not exceeding Kenya

shillings twenty-five thousands.

5. Registration And Removal Of Caution In Respect Of

Unpaid Amounts

The Corporation may register a caution against the title to

an owner’s unit for any amounts due and unpaid by the

owner, provided that upon payment Of the amounts due,

the Corporation shall within thirty days Of payment

withdraw the caution.

6. Renting of Residential Units

Under the repealed law, an owner renting out their unit

was required to disclose to the Corporation the amount Of

rent chargeable to the unit as well as pay a deposit to the

Corporation for maintenance, repair and or replacement Of

the common property, This is not a requirement under the

new law which recognizes the autonomy of an individual

unit owner to deal with their individual unit as they please

independent of the common property and the mandate of

the Corporation.

7. Termination Of The Sectional Status Of A Building

Under the new law,the sectional status building may be terminated by unanimous resolution of the unit owners, the substantial all total destruction of the building or pursuant to an order compulsory acquisition and the corporation shall stand dissolved upon the termination of the said property status.

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