The Sectional Properties Act, 2020, significantly reformed the ownership and management of multi-unit developments in Kenya, replacing the previous regime under the RTA for such properties. By 2025, its implementation is well underway, impacting developers, apartment owners, and property managers. This guide explains its key provisions and practical implications.
1. Background: Why the New Sectional Properties Act?
Shortcomings of the previous system (sub-leases under RTA for apartments). The new Act aims to simplify ownership, provide greater security of title for unit owners, and streamline management of common areas. Alignment with the Land Registration Act, 2012.
2. Key Provisions of the Sectional Properties Act, 2020
Explanation of core concepts:
- Sectional Plans: Their preparation, content (geodetic survey, unit delineation), and registration.
- Conversion of Existing Properties: Process for developers/owners of existing apartment blocks (previously under sub-leases) to convert to the new sectional regime. Deadlines and requirements.
- Issuance of Separate Title Deeds (Certificates of Title or Certificates of Lease) for Individual Units: Greater security for owners and easier financing.
- Ownership of Common Property: Units owners hold common property as tenants in common, with shares proportionate to unit factors.
3. The Role of the Management Corporation
Establishment and functions of the Management Corporation upon registration of the sectional plan. Its responsibilities: managing common areas, collecting service charges, enforcing by-laws, insuring the property. Membership and voting rights of unit owners.
4. By-Laws and Dispute Resolution
Standard by-laws provided in the Act and the process for creating or amending specific by-laws for a particular development. Mechanisms for resolving disputes between unit owners or between owners and the Management Corporation.
5. Implications for Developers in 2025
Requirements for new multi-unit projects. Importance of accurate sectional plan preparation from the outset. Obligations regarding formation of the Management Corporation and handover of common areas.
6. Benefits and Considerations for Unit Owners
Enhanced security of title, easier property transactions (sale, mortgage). Understanding rights and responsibilities as a member of the Management Corporation. Importance of active participation in AGMs and understanding service charge components.
7. Challenges in Implementation and The Way Forward
Any ongoing challenges in the conversion process, public awareness, capacity of professionals (surveyors, lawyers) to handle sectional property transactions. Role of the Ministry of Lands and Ardhisasa in supporting implementation.
Conclusion
The Sectional Properties Act, 2020, marks a significant improvement in the framework for owning and managing apartments in Kenya. By 2025, its benefits for secure titling and structured management are becoming clearer, making sectional property investment more attractive and transparent for both developers and individual buyers.
