Kenya’s real estate sector is undergoing a remarkable transformation. As urbanization accelerates and land scarcity becomes more pronounced in cities like Nairobi, Mombasa, and Kisumu, developers are increasingly turning to multi-dwelling and high-rise developments to meet the growing demand for housing and commercial spaces.
However, this evolution exposed a major gap in the traditional land ownership system. Previously, ownership was based on a single-title framework, which did not adequately cater to individual unit ownership within large developments. To address this, the government introduced the Sectional Properties Act, 2020, establishing a modern legal framework designed to guarantee clarity, security, and marketability in property ownership.
This transition, reinforced by the Ministry of Lands’ title conversion programme under the Land Registration Act, 2012, is reshaping the property market. Today, sectional titles have become the backbone of vertical and gated developments, ensuring that each unit owner enjoys exclusive ownership rights alongside a share of common property.
For property owners, investors, and off-plan buyers, understanding how sectional titles work is no longer optional it is a necessity for protecting investments, accessing financing, and avoiding legal challenges. With increasing complaints about delays in sectional title issuance, being informed about the process gives you a strategic advantage.
This detailed guide by GIMCO Limited explains:
- What sectional titles are and why they were introduced
- Key benefits of sectional ownership
- The legal procedure for obtaining a sectional title
- How title conversion ties into this framework
- Critical due diligence tips for off-plan property buyers
What is a Sectional Title in Kenya?
A sectional title refers to the ownership of a defined unit within a multi-unit property, such as:
- Apartments and flats
- Townhouses and maisonettes
- Office suites in commercial buildings
- Retail spaces in mixed-use developments
Unlike the old system where buyers only received long-term leases derived from the developer’s mother title, a sectional title gives:
- Exclusive ownership of the specific unit (apartment, office, shop, townhouse, etc.)
- Undivided share of common property, which includes lobbies, lifts, parking spaces, gyms, gardens, and driveways
Key Terms in Sectional Titles
- Sectional Unit: A specific space within a building, defined by boundaries like floors, walls, and ceilings.
- Sectional Plan: A surveyor-prepared plan that outlines unit boundaries, common property, and unit numbers, approved by the Survey of Kenya.
- Mother Title: The original title deed for the entire parcel before subdivision into sectional units.
- Management Corporation: A body formed by all sectional unit owners to manage shared areas and maintain property value.
- Common Property: Shared areas like hallways, lifts, driveways, swimming pools, and recreational spaces.
Why Kenya Adopted the Sectional Titles Regime
1. Maximizing Land Use in Urban Areas
Land in urban centers is scarce and expensive. Vertical developments such as apartments and commercial towers make optimal use of limited land. To facilitate individual ownership within these developments, the sectional titles regime was necessary.
2. Clear and Secure Ownership
Previously, buyers only obtained long-term leases or subleases from the developer’s title, even in cases of freehold land. This caused confusion and insecurity for owners. With sectional titles, buyers receive direct ownership rights through a registrable title, ensuring legal clarity and security.
- Freehold units: Owners receive a certificate of title.
- Leasehold units: Owners receive a certificate of lease, renewable directly through government offices, bypassing developers.
3. Better Financing and Marketability
Banks and financial institutions prefer a title deed as collateral, making mortgages and loans easier to obtain. With sectional titles:
- Owners can sell or transfer their units without restrictions from developers.
- Property becomes more marketable and bankable, boosting the real estate sector.
How to Obtain a Sectional Title in Kenya: Step-by-Step Guide
Under the Sectional Properties Act, 2020, all new and existing multi-unit properties must adopt sectional titles. Here’s the process:
Step 1: Prepare a Sectional Plan
- Hire a licensed surveyor to create a plan that clearly defines:
- Unit boundaries
- Common property areas
- Unit numbers
Step 2: Get County Government Approval
- Submit the sectional plan to the relevant county planning department.
- Ensure compliance with:
- Planning and building approvals
- Change of user approvals (if applicable)
Step 3: Authenticate Plan at Survey of Kenya
- The approved plan is verified by the Survey of Kenya for accuracy.
Step 4: Register the Sectional Plan and Surrender the Mother Title
- Submit the authenticated plan and mother title to the Land Registrar.
Step 5: Close Mother Title Register and Open New Registers
- The mother title is closed, and individual registers for sectional units are opened.
Step 6: Issuance of Individual Sectional Titles
- Each unit owner receives:
- Certificate of title (freehold interest)
- Certificate of lease (leasehold interest)
- The title includes an undivided share in common property.
Step 7: Formation of Management Corporation
- Upon registration, a management corporation is automatically created to manage shared facilities and ensure property value is maintained.
Note: This process should be handled with the guidance of a qualified property lawyer to avoid compliance issues.
Sectional Titles and the Title Conversion Program
Before 2012, Kenya had multiple land registration systems (e.g., Registered Land Act, Government Lands Act). This caused confusion and duplicity in title documentation. The Land Registration Act, 2012, consolidated these systems into a single transparent framework.
To comply:
- All old titles must be converted before any transactions.
- The Sectional Properties Act, 2020, requires long-term leases for apartments, maisonettes, and offices to be converted into sectional properties.
- Conversion and sectional title issuance are often done simultaneously.
Special Considerations for Off-Plan Buyers
Buying property off-plan offers attractive pricing and flexibility—but comes with unique risks. Before committing, ensure:
✅ Land Use Verification
- Confirm the property’s registered use (residential, commercial, or mixed-use).
- Check if the developer has secured change-of-user approvals, if applicable.
✅ Developer Compliance
- Ensure all building plans, approvals, and NEMA licenses are in place.
✅ Clean Mother Title
- Verify the title is in the developer’s name, free of encumbrances, and suitable for conversion.
✅ Sectional Plan Readiness
- Ask if the sectional plan is prepared or in progress.
✅ Sale Agreement Review
- Check for clauses on:
- Timelines for title issuance
- Penalties for delays
- Remedies for non-compliance
✅ Management Company Structure
- Understand how it will operate since it controls common property and long-term property value.
✅ Clear Timelines
- Demand written timelines for construction completion, handover, and registration.
Conclusion: A Smarter Way to Own Property
The sectional titles regime is not just a legal update—it’s a strategic reform for Kenya’s property market, promoting:
- Ownership security
- Bankability
- Transparency
- Better land utilization
For investors, knowledge is your greatest asset. Engage professionals, conduct due diligence, and insist on compliance before signing any agreement.
At GIMCO Limited, we provide:
- Property management
- Valuation and advisory
- Guidance on title conversion and compliance
Talk to us today and make your real estate investment secure, profitable, and future-ready.
