In Kenya’s fast-evolving real estate landscape, navigating the Sectional Properties Act and the Land Registration Act is crucial for developers aiming for success. These two pieces of legislation carry serious implications for project structuring from the ground up, and it’s not always straightforward—they often lack complete alignment.
Why does this matter? 📌 The way you structure your company and project can make or break it.
The complexity lies in the details. For example, are you planning to sell off-plan? Are you struggling with how to categorize your mixed-use project? Are you developing in phases? Are you trying to convert long-term leases to sectional titles? MC vs Corporation?
These decisions are all heavily influenced by these acts, which have implications for:
Tax structuring 💰 – Smart structuring can result in tax savings, but missteps can lead to unexpected costs.
Speed of Execution 🏗️ – Certain legal frameworks can streamline processes, while others can delay approvals.
Project Fit 🎯 – The act you adhere to affects whether your project complies with various zoning and usage regulations.
Governance and Ownership Structures ⚖️ – Proper legal guidance ensures a seamless transition to owner associations, minimizing post-completion issues.
Bottom line: Developers should engage seasoned legal professionals at the earliest stages. An experienced lawyer can help craft a project structure that aligns with both acts, paving the way for regulatory compliance and long-term viability.
Please Don’t wait until you’ve broken ground—legal insight from the start is your key to smoother, more successful project execution. 🛠️✨
