How to Register and Manage a Strata (Sectional) Property in Kenya

Sectional properties, commonly known as strata properties or condominiums, represent a form of ownership where individuals own a specific unit within a building while jointly owning common areas with other proprietors. Kenya's Sectional Properties Act, No. 21 of 2020, provides a comprehensive legal framework for creating, registering, and managing these properties. This Act replaced the earlier sectional properties regime and brought clarity to apartment ownership, management corporation duties, and dispute resolution mechanisms that affect millions of Kenyans living in multi-unit developments.

What Are Sectional Properties?

A sectional property is a building that has been subdivided into individually owned units, each with its own certificate of title for freehold land or certificate of lease for leasehold land. When you buy an apartment, townhouse, or office suite in a sectional scheme, you receive an independent title document for your specific unit, separate from the developer's mother title. You also acquire a proportionate undivided share of the common property, which includes shared areas like lobbies, staircases, parking lots, swimming pools, gardens, and recreational facilities. This dual ownership structure distinguishes sectional properties from other forms of property holding in Kenya.

Legal Framework Under the Sectional Properties Act, 2020

The Act applies to buildings on freehold land or leasehold land with an unexpired term of at least 21 years. It establishes rules for converting existing buildings into sectional schemes, creating new sectional developments, registering individual unit titles, forming management corporations, and resolving disputes between unit owners. The Act is administered by the Ministry of Lands and Physical Planning through the land registries, and it works alongside the Land Registration Act, 2012, and the Land Act, 2012.

Requirements for Registering a Sectional Plan

The registration process begins with the developer or building owner who wishes to convert a building into sectional property. The following requirements must be met before registration can proceed.

Approved Building Plans

The building must have plans approved by the relevant county government. This includes architectural drawings showing the layout of individual units, common areas, and the overall building structure. An occupation certificate confirming that the building is complete and fit for habitation is also required.

Geo-Referenced Sectional Plan

A licensed surveyor must prepare a geo-referenced sectional plan that precisely defines the boundaries of each individual unit and the common property. This plan shows floor areas, unit numbers, the entitlement of each unit expressed as a fraction or percentage of the whole building, and the location of common property elements. The surveyor must be registered with the Institution of Surveyors of Kenya (ISK) and hold a valid practising licence.

Declaration and By-Laws

The developer must prepare a declaration of condominium that outlines the ownership structure and management framework for the sectional scheme. This declaration is accompanied by by-laws that govern the day-to-day operation and management of the property, including rules on noise, pet ownership, renovations, parking allocation, and use of common facilities. The Act provides default by-laws that apply unless the scheme adopts custom by-laws approved by a special resolution of unit owners.

Step-by-Step Registration Process

The registration of a sectional plan follows a defined sequence. The developer engages a licensed surveyor to prepare the sectional plan based on approved building plans. The surveyor submits the sectional plan to the Director of Surveys for approval and authentication. Once approved, the developer lodges the authenticated sectional plan together with the declaration, by-laws, and prescribed fees at the relevant land registry. The registrar examines the documents for compliance with the Act and, if satisfied, registers the sectional plan.

Upon registration, the registrar cancels the original title for the parcel and issues individual certificates of title or lease for each unit shown on the sectional plan. Each certificate specifies the unit number, floor area, entitlement share, and the existence of the management corporation. The developer or owner can then transfer individual unit titles to buyers through standard conveyancing procedures.

The Sectional Properties Corporation

One of the most important innovations of the Act is the automatic creation of a Sectional Properties Corporation (SPC) upon registration of a sectional plan. Every unit owner automatically becomes a member of this corporation. Unlike management companies formed under the Companies Act, the SPC is a statutory body regulated directly by the Sectional Properties Act, which eliminates incorporation costs, annual filing fees, and tax obligations associated with company law compliance.

Powers and Duties of the Corporation

The SPC is responsible for managing, maintaining, and repairing the common property, including structural elements, shared facilities, and exterior areas. It must establish a sinking fund for major repairs and capital expenditure, collect service charges from unit owners based on their entitlement shares, insure the building against fire and other prescribed risks, enforce the by-laws, keep proper accounts and records, and convene annual general meetings where owners vote on budgets, service charges, and management decisions.

The Management Committee

Day-to-day management of the SPC is handled by an elected management committee comprising unit owners voted in at the annual general meeting. The committee oversees maintenance contractors, approves expenditure within approved budgets, handles owner complaints and disputes, and reports to the full corporation at general meetings. Many larger developments also appoint professional property managers to handle operational tasks under the committee's supervision.

Rights and Obligations of Unit Owners

As a unit owner in a sectional scheme, you have the right to exclusive possession of your unit, the right to use common property in accordance with the by-laws, voting rights at general meetings proportionate to your entitlement share, and the right to sell, lease, or mortgage your unit without requiring consent from other owners. Your obligations include paying service charges and levies promptly, complying with the by-laws, not making structural alterations without written approval from the corporation, maintaining your unit in good condition, and not using your unit for purposes that contravene the by-laws or cause nuisance to other residents.

Service Charges and Financial Management

The corporation funds its operations through service charges levied on unit owners. These charges cover routine maintenance of common areas, security services, cleaning, landscaping, water and electricity for common areas, insurance premiums, management fees, and contributions to the sinking fund. Charges are apportioned based on each unit's entitlement share as specified in the sectional plan. The corporation must prepare annual budgets, maintain audited accounts, and present financial reports at general meetings for owner approval.

Dispute Resolution

The Act provides structured mechanisms for resolving disputes between unit owners, between owners and the corporation, or between the corporation and third parties. Disputes may be referred to mediation, arbitration, or the Environment and Land Court. Common disputes involve non-payment of service charges, unauthorized alterations, breach of by-laws, mismanagement of corporation funds, and disagreements over special levies for major repairs.

Benefits of Sectional Title Registration

Registering property under the Sectional Properties Act offers significant advantages for both developers and buyers. Buyers receive independent titles that can be used as collateral for bank loans, eliminating dependence on the developer's mother title. Developers can sell units with clean titles, increasing buyer confidence and property values. The statutory management framework reduces disputes and ensures transparent governance. Insurance and mortgage processes are simplified because each unit has its own registered title, and unit owners enjoy legal protection under a dedicated statutory framework.