CS Wahome Reveals Property Ownership Structure for Affordable Housing

The government has confirmed that forthcoming affordable housing projects will include sectional property title deeds as proof of ownership.

This decision, announced during a briefing by Lands, Public Works, Housing, and Urban Development Cabinet Secretary Alice Wahome at Ardhi House in Nairobi, seeks to establish clear ownership rights for residents and foster transparency in property management. Affordable Housing Board Chief Executive Sheila Waweru reassures the public that properties situated on county or national government land would have sectional property title deeds processed following the completion of payment.

A key aspect of this initiative is the formation of a management corporation by the residents to oversee shared areas, addressing concerns about potential government repossession of the homes. The government is set to deliver an initial batch of 4,800 housing units constructed under the Affordable Housing Programme (AHP) to new owners by the end of next month. The registration and ownership process for these units will adhere to the Sectional Properties Act, 2020, and its subsequent regulations enacted in 2021, which provide a legal framework for subdividing buildings into individual ownership while ensuring collective ownership of common areas.

This legislation, originally enacted in 1987 and revised to align with the 2010 Constitution and relevant land laws in 2020, outlines a structured approach for developers. Before selling any units, developers must provide comprehensive documentation, including purchase agreements, bylaws, and management agreements. Once a sectional plan is registered, the registrar will conclude the existing land register and establish separate registers for each unit, noting each owner’s proportional share in the common property and any associated land interests.

Each unit will be assigned its title, and individual parcels of land will be recognized for rate assessments. Unit owners will be liable for applicable taxes and ground rent. The process for registering affordable housing sectional titles comprises six distinct steps, beginning with the surveying and titling of project sites according to the Land Registration Act and Land Act. Titles held by the National Government will be transferred to the Affordable Housing Board, and a similar procedure will be followed for county-held lands, contingent upon county assembly approval.

Surveyors will prepare the sectional plans for registration. The simultaneous registration of both the sectional plan and the resident management corporation will lead to the issuance of sectional titles in the name of the Affordable Housing Board. Upon full payment as per the sale agreement, these titles will eventually be transferred to the purchasers, granting them absolute legal ownership along with a sectional title certificate of lease reflecting their interest in any common areas.