The Key Aspects of Sectional Properties Act (2020)

Kenya's Sectional Properties Act (SPA) of 2020 regulates the ownership and management of apartments, townhouses, flats, maisonettes, and offices. The SPA was passed to simplify the process of acquiring and managing sectional units, and to give owners more autonomy.

The Sectional Properties Act (SPA) of Kenya allows for the division of buildings into units that are owned by separate individuals. The SPA also establishes common areas, such as gyms, lobbies, and playgrounds, that are owned by the unit owners as tenants in common.

The SPA applies to both Kenyan citizens and foreign nationals, but there are some differences in what each can own:

·       Kenyan citizens: Can hold both leasehold and freehold sectional titles

·       Foreign nationals: Can only hold leasehold sectional titles for up to 99 years

Generally, the SPA allows owners to acquire an independent title deed for their unit, as opposed to a lease where the owner's interest is registered against the main title. The SPA also establishes a Corporation to manage the property, including maintaining it, enforcing bylaws, and paying insurance premiums.

Here are some key aspects of the SPA:

Sectional units

A sectional unit is a space within a building that's defined by its walls, floors, and ceilings. Sectional units come with a distinct share of the building's common areas.

Titles

The SPA allows owners to acquire an independent title deed for their unit, rather than having their interest registered against the main title for the land. Kenyan citizens can hold either freehold or leasehold sectional titles, and can hold the title for more than 99 years.

Dispute resolution

Disputes related to by-law violations are handled by an internal dispute resolution committee. The committee can make decisions without limit on penalties. Decisions made by the committee can be appealed to the Environment and Land Court.

Conversion of long-term leases

To convert a long-term lease to a sectional title, an applicant needs to provide a sectional plan, sub-lease or long-term lease, and a copy of the title. After conversion, the registrar will issue a certificate of title or lease to the unit owner.

The SPA replaced the Sectional Properties Act of 1987. The new law was created in response to challenges with the previous act, as well as the Constitution of Kenya, 2010, and advancements in the banking and building industries.

Conclusion

The SPA includes penal sanctions for non-compliance, such as fines of up to KES 20,000,000 or one year in prison