Buying off-plan property in Kenya: managing the risk

Buying an apartment before it is built can be cheaper than buying a completed unit. It also carries risks: delays, changes to the design, and in the worst cases a developer who never completes.

Do your due diligence

• Search the title to the mother land and confirm the developer owns it or has a registered development agreement.
• Check approvals: county building approval and NEMA environmental licence.
• Research the developer: completed projects, complaints and litigation.
• Check for charges: if the land is charged to a bank, ask how your unit will be released.

Structure the payments

Prefer payment schedules tied to construction milestones, certified by the project architect or quantity surveyor, rather than large upfront deposits. Where possible, pay into an escrow account held by the advocates.

Read the sale agreement closely

Key clauses include:

• the completion date and your rights if it is missed (refund, interest, penalties),
• permitted variations to the unit,
• service charge arrangements and the management company, and
• the form of title you will receive.

Title for apartments

Under the Sectional Properties Act, 2020, apartments are held on sectional titles for each unit, with common property managed by a corporation of owners. Ask when the sectional plan will be registered and your title issued.

This article is general information, not legal advice on your situation.

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