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Understanding the Sectional Properties Act of 2020

By James Kariuki | March 10, 2025 | Real Estate

Understanding the Sectional Properties Act of 2020

The Sectional Properties Act of 2020 has revolutionized property ownership in Kenya, particularly for apartments, flats, and other multi-unit developments. This legislation replaces the Sectional Properties Act of 1987 and introduces significant changes to how sectional properties are registered, managed, and transferred.

Key Features of the Sectional Properties Act

The Act introduces several important features that property owners, developers, and investors should be aware of:

  • Conversion of long-term leases to sectional titles
  • Registration of units as freehold or leasehold interests
  • Establishment of corporation management structures
  • Regulations for common property management
  • Guidelines for dispute resolution

Benefits for Property Owners

The Sectional Properties Act offers numerous benefits for property owners, including:

Enhanced property rights: Owners receive a title deed for their specific unit, providing greater security of tenure compared to the previous system of share certificates.

Improved financing options: With individual title deeds, unit owners can more easily secure financing using their property as collateral.

Better management structures: The Act provides for the establishment of corporations responsible for managing common areas, ensuring more effective property management.

Implementation Challenges

Despite its benefits, the implementation of the Sectional Properties Act faces several challenges:

  • The transition process from the old system to sectional titles
  • Registration procedures and documentation requirements
  • Establishment and operation of management corporations
  • Resolution of existing disputes during the transition

Navigating these challenges requires expertise in property law and a thorough understanding of the new legislation.

Conclusion

The Sectional Properties Act of 2020 represents a significant advancement in Kenya's property law, offering greater security and clarity for owners of units in multi-story buildings and shared developments.

At Babu Law Firm, we provide comprehensive legal support for all matters related to sectional properties, helping clients navigate the complexities of this new legislation.

J

James Kariuki

Senior Associate

James Kariuki specializes in real estate and property law, with particular expertise in sectional properties and land registration.