Kenya property lawyer services Archives

How to Purchase an Apartment in Kenya

WKA ADVOCATES offers expert legal assistance for individuals looking to buy apartments in Kenya, whether you are a local buyer, foreign investor, expatriate, or Kenyan in the diaspora. As Kenya’s real estate market continues to grow rapidly—especially in urban centers like Nairobi, Mombasa, Kisumu, and Nakuru—many are investing in modern apartments, maisonettes, villas, and high-rise condominiums.

Thanks to ongoing infrastructure development, a thriving middle class, and increasing demand for affordable and luxury housing, purchasing an apartment in Kenya can be a profitable investment or a step toward homeownership. However, real estate transactions carry legal and financial risks. That’s why it’s crucial to work with professionals who understand the Kenyan property landscape.

At WKA Advocates, we specialize in real estate and conveyancing law in Kenya. Our team ensures your apartment purchase is handled legally, transparently, and efficiently from start to finish. Whether you’re buying off-plan or a completed apartment unit, we safeguard your interests every step of the way.

Step-by-Step Guide to Buying an Apartment in Kenya

1. Research and Identify the Apartment

Start by determining your budget, financing options (e.g., mortgage or cash), and the location of interest. Popular apartment hubs in Kenya include:

Nairobi suburbs: Kilimani, Westlands, Kileleshwa, Lavington, Ruaka, and Syokimau.
Coastal cities: Nyali, Bamburi, and Diani.
Satellite towns: Kitengela, Ruiru, Thika, Athi River, and Ngong.

Consider factors such as:

Proximity to schools, hospitals, roads, and public transport.
Availability of amenities like parking, backup generators, water tanks, swimming pools, and gyms.
Security, property management, and neighborhood regulations.

2. Engage a Reputable Real Estate Agent

WKA Advocates collaborates with vetted and licensed real estate agents in Kenya who help you source and compare apartment options. These agents understand property values, trends, and hidden risks within the property market.

3. Engage a Qualified Property Lawyer

Before committing to any purchase, always consult a conveyancing lawyer in Kenya. Our legal team at WKA Advocates:

Performs due diligence.
Verifies land ownership and the apartment’s sectional title.
Reviews existing leases or sub-leases.
Assesses compliance with planning approvals and zoning laws.

4. Negotiation and Offer

Once you’ve chosen your apartment, we assist with:

Drafting and issuing the Letter of Offer.
Negotiating terms including purchase price, deposit, payment timelines, and whether the unit is sold with or without fittings/furnishings.

We ensure all agreements are legally binding and beneficial to your interests.

5. Legal Due Diligence Process

This is one of the most critical stages. We:

Conduct a title search at the Ministry of Lands.
Confirm that the property is not encumbered by loans, disputes, or unpaid taxes.
Check whether the property is registered under a Sectional Property Title, Certificate of Lease, or Certificate of Title.
Investigate the apartment developer’s credibility (especially for off-plan purchases).

6. Physical Site Visit and Inspection

Before proceeding, we strongly advise a site visit to:

Inspect the apartment’s construction quality.
Verify amenities and utilities.
Identify pending repairs or maintenance issues.

7. Drafting and Signing the Sale Agreement

WKA Advocates will draft or review the Sale Agreement, ensuring that all legal clauses, payment terms, timelines, and obligations are clearly stipulated.

Typical terms include:

Purchase price.
Deposit (usually 10%).
Completion period.
Conditions precedent.
Penalties for breach.

8. Payment of Deposit

The buyer pays the agreed deposit, usually held in a joint escrow account or the advocate’s client account. This secures the apartment and shows your commitment to the transaction.

9. The Transfer Process

WKA Advocates oversees:

Final balance payment.
Payment of stamp duty (currently 4% for urban properties, 2% for rural).
Settlement of service charge arrears or outstanding utilities.
Preparation of the Transfer Document and Completion Statement.

10. Registration of the Transfer

Once all payments and documents are in order, we:

Lodge the Transfer at the Lands Registry.
Apply for registration of the Sectional Title under your name.
Ensure issuance of a completion certificate (especially for apartments under sectional property law).

11. Handover and Possession

The seller officially hands over the keys. You can now take physical possession of your new home or rental property. We’ll ensure a proper handover checklist is followed and signed.

Additional Considerations When Buying an Apartment in Kenya

Buying Off-Plan: Many investors buy apartments off-plan for lower prices. However, this comes with risks like project delays or developer insolvency. WKA Advocates protects your interests by reviewing off-plan agreements, checking approvals, and monitoring compliance.
Foreign Ownership: Non-citizens can own apartments in Kenya but cannot directly own freehold land. Most apartments are leasehold or governed by the Sectional Properties Act, 2020, making it easier for foreigners to invest legally.
Mortgage Financing: If purchasing through a mortgage, we liaise with your bank to ensure the loan terms and collateralization process are legally secure.
Transfer of Service Charges and Utilities: We assist in ensuring utilities (water, electricity, garbage, security, internet) are transferred to your name post-purchase.

Why Choose WKA Advocates?

At WKA Advocates, we are committed to offering:

Transparent and expert legal guidance.
Seamless coordination with agents, developers, and government agencies.
Fixed-fee or customized legal packages for property buyers.
Trusted support for both local and foreign property buyers in Kenya.

With a strong background in conveyancing, property law, and real estate litigation, we’re your legal partner for all property transactions.

Ready to Purchase an Apartment in Kenya?

Contact WKA Advocates today for a free initial consultation on your apartment purchase or to learn more about property laws in Kenya.

The Legal Procedure for Lenders to Sell Property in Case of Loan Default in Kenya

In Kenya, many borrowers secure loans from banks and financial institutions by offering their property, particularly land, as collateral. This collateral is legally known as a “charge” on the property. Unfortunately, borrowers often default on loan repayments, leading to the sale of their properties through public auctions. A critical question arises: Do lenders follow the lawful procedure in exercising their statutory power of sale when a borrower defaults?

A key case that provides insight into this issue is Basil Criticos v. National Bank of Kenya Limited (Civil Appeal No. 80 of 2017). On April 28, 2022, the Court of Appeal ruled in favor of Basil Criticos, awarding him Kshs. 2,284,101,000 (KES 2.2 billion) for the improper sale of his property, LR No. 5865/2. The court found that the sale was unauthorized, improper, and irregular, violating the legal procedure under the Land Act, 2012.

The Law Governing Statutory Power of Sale in Kenya

The statutory power of sale is governed by the Land Act, No. 6 of 2012, which sets out clear steps a lender must follow before selling a charged property. If these steps are not followed, the sale may be deemed improper, as seen in the Criticos case. Below are the key legal requirements lenders must adhere to:

Issuing Statutory Notices: The lender must issue a statutory notice to the borrower within one month of the default, as per Section 90 of the Land Act. This notice provides the borrower with an opportunity to rectify the default.
Notice of Sale: Under Section 96, the lender must serve a notice of sale and wait for a period of at least 40 days before proceeding with the sale.
Valuation of the Property: The law mandates that a certified land valuer must assess the property to ensure it is sold for no less than 75% of its market value, as stipulated in Section 97.
Good Faith and Duty of Care: The lender must sell the property in good faith and with due diligence to avoid any exploitation of the borrower. Any surplus proceeds from the sale must be remitted to the borrower.

The Case of Basil Criticos: Lessons on Improper Property Sale

The landmark Basil Criticos case sheds light on how banks may act inappropriately when exercising their statutory power of sale. In High Court Case HCCC 132 of 2009, the National Bank of Kenya sold LR No. 5865/2 for Kshs. 55 million following a default on a Kshs. 20 million loan. However, Criticos argued that his liability as a guarantor should have been limited to the initial loan amount. He also claimed that the property, co-owned with Mama Ngina Kenyatta, was sold for much less than its market value of over Kshs. 3 billion.

While the High Court ruled in favor of the bank, dismissing Criticos’ counterclaim, the Court of Appeal later overturned this decision. The appellate judges found that the property had indeed been sold below its market value and that Criticos’ liability as a guarantor was limited. They awarded him Kshs. 2.2 billion in damages.

The Supreme Court Decision

National Bank of Kenya sought to challenge the Court of Appeal’s decision in the Supreme Court. However, the Supreme Court dismissed the application, affirming the appellate ruling that Criticos was entitled to damages for the unauthorized sale of his property.

Proper Exercise of Statutory Power of Sale

The Criticos case serves as a warning to both lenders and borrowers. Banks and other financial institutions must ensure they adhere strictly to the legal procedure before exercising the statutory power of sale. Key compliance measures include:

Issuing the correct statutory notices within the specified timelines.
Ensuring the property is accurately valued and sold at a fair price.
Conducting the sale transparently and in accordance with the law.

Borrowers, on the other hand, should be vigilant and ensure they understand their rights, especially when their property is at risk of being sold.

For legal guidance on the statutory power of sale or other property-related matters, contact WKA Advocates at info@wka.co.ke or visit wakilihub.co.ke/. Our office is located at Valley View Business Park, Parklands, Nairobi.

Authors: William Karoki – Partner
Florence Mwende – Associate