Here’s the surprising part: Kenya has no dedicated law that governs off-plan property purchases. Buyers must rely on the Law of Contract (which requires written agreements) and existing land laws. Unfortunately, most sale agreements lean in favor of developers.
The Sectional Properties Act (2020) provides some protection, especially when units are subdivided and registered individually. Still, buyers must be aware that banks’ interests (where loans are secured against the project) often take precedence over purchasers’ contracts.
This was made clear in the case of Willow Park Limited v. Jamii Bora Bank Limited (2019), where the court upheld a bank’s right to sell charged property even though units had already been sold off-plan. The lesson? Your agreement with a developer is only as strong as the developer’s financial stability.
So how does an off-plan transaction actually work? Here’s a simplified roadmap:
1. Initial Research — vet the project and the developer’s track record.
2. Legal Due Diligence — confirm the land title, approvals (NEMA, NCA, county permits), and encumbrances.
3. Sale Agreement — review terms like payment structure, completion dates, handover, and dispute resolution.
4. Payment Plan — usually staged, tied to construction milestones.
5. Monitoring Progress — insist on updates, reports, and site visits.
6. Handover & Inspection — check for defects before final acceptance.
7. Registration & Transfer — pay stamp duty (typically 4%) and ensure the property is registered in your name.
Following these steps ensures you’re not just relying on promises but also protecting your rights along the way.