Real Estate Investment in Kenya: Navigating the New Sectional Properties Framework
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Kenya's real estate sector is experiencing unprecedented growth, with new developments worth over KES 800 billion planned for Nairobi and Mombasa in the next five years. However, recent amendments to sectional property laws require investors to adapt their strategies.
The revised Sectional Properties Act introduces enhanced consumer protection measures for apartment buyers, including mandatory disclosure requirements and standardized management agreements. These changes particularly affect mixed-use developments and gated communities.
Key Updates for Developers:
- Enhanced Disclosure Requirements: Developers must now provide detailed financial projections for maintenance costs over 10-year periods
- Standardized Documentation: The use of government-approved template agreements is now mandatory for all sectional title transactions
- Environmental Compliance: New green building standards apply to developments exceeding 50 units
Investment Opportunities
The government's affordable housing initiative has created significant opportunities in the middle-income housing segment. Tax incentives for developers constructing units priced below KES 8 million remain attractive, particularly when combined with preferential land allocation policies.
Foreign investors should note updated foreign exchange regulations affecting property acquisitions exceeding USD 500,000. Our team has successfully structured compliant investment vehicles for international clients seeking exposure to Kenya's growing real estate market.
Our Real Estate & Conveyancing team provides end-to-end support for property investments, from structuring to registration. Let's talk.
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