For decades, buying an apartment in Nairobi meant you did not actually own the physical piece of real estate. Instead, you received a “share certificate” in a management company, or a long-term sub-lease tied to the developer’s mother title. This caused endless headaches-from developers using the mother title to secure secret bank loans, to owners struggling to use their apartments as collateral.
In forums, there is massive confusion about what happens next. The Sectional Properties Act of 2020 changed the game entirely, and the transition is actively reshaping the market.
The Shift to Direct Ownership
Under the new law, the old system is obsolete. Buildings are now subdivided into units, and each apartment gets its own distinct, individual title deed (or certificate of lease).
Here is why this is a massive win for buyers at Upscale Real Estate:
- Direct Control: You own your unit directly, entirely independent of the developer. The developer can no longer build extra structures on the remaining open spaces once the sectional plan is registered.
- Easier Financing: Banks historically hated share certificates. With an individual sectional title, it is significantly easier to use your apartment as collateral for a loan.
- Shared Common Areas: Your title clearly outlines your proportionate share of the common property (parking, lifts, gardens). A Sectional Properties Corporation (made up of the unit owners) automatically takes over management, cutting out predatory third-party management fees.
If you are buying an apartment today, do not accept a share certificate. Ensure the developer has an approved and registered Sectional Plan.
