Sectional titles in Kenya let you own an apartment or unit outright, with a real title, rather than through a company share or a long lease. The Sectional Properties Act 2020 modernised the regime and required older schemes to convert. This guide explains how sectional titles work, and why apartment owners and buyers need to check their conversion status.
This guide is for apartment and unit buyers, developers, management companies, and owners in older long-lease schemes deciding what the conversion requirement means for them. In addition, if you are buying off-plan, read it alongside our off-plan property guide. For the transaction itself, see our guide to conveyancing in Kenya.
For years, owning an apartment in Kenya often meant owning a share in a management company that held the land, plus a long sub-lease of your unit. It worked, but it was cumbersome. Moreover, a share certificate is not the same as a title. The Sectional Properties Act 2020 then put the regime on a modern footing. As a result, it replaced the 1987 Act and aligned sectional property with the Land Registration Act, 2012. In addition, it made it possible for a unit owner to hold a genuine title to the unit.
A sectional title divides a building into units and common property. So you own your unit, and you also own a share of the common property, such as the corridors, grounds, lifts and roof, as a tenant in common with the other owners. In short, three ideas do the work:
This is the pressing issue for existing developments. Under section 13(2) of the Act, certain long-term leases were used to confer ownership of units. That was the old management-company and long-sub-lease model. These schemes were required to convert into sectional titles. The Act commenced on 28 December 2020, and conversion was to be completed within two years, by 28 December 2022. That original date has passed, and the practical position since then is not fully settled: the registry has continued to process conversions, and non-compliance can in principle attract a fine of up to KES 250,000, but no gazetted extension of the deadline is documented in the available legal commentary. Any scheme that has not converted should treat this as unresolved rather than closed, and should confirm the current position directly with the Ministry of Lands.
The reason to act is practical. For example, where a scheme has not converted, dealings on the parent title can be restricted. In addition, a bank asked to lend against an apartment increasingly wants to see a clean sectional title rather than a company share. In our view, owners and management companies in older schemes should treat conversion as unfinished business, not a closed chapter.
| Feature | Old long-lease / company model | Sectional title under the 2020 Act |
|---|---|---|
| What you own | A share in the management company plus a long sub-lease | A registered title to your unit |
| Sell or mortgage the unit alone | Awkward | Yes, on the unit’s own title |
| Common property | Held by the company | Held by the owners in common, managed by the corporation |
| Modern lender acceptance | Increasingly difficult | Preferred |
What is a sectional title? Ownership of a defined unit, such as an apartment, together with a share of the common property, evidenced by a registered title.
What did the Sectional Properties Act 2020 change? It replaced the 1987 Act, aligned sectional property with the Land Registration Act, 2012, and required older long-lease schemes to convert to sectional titles.
Do older apartment schemes have to convert? Yes. Long-term leases used to confer unit ownership were required to convert; the deadline has passed and is subject to registry direction, so confirm your scheme’s status.
Why does conversion matter to me? In practice, a proper sectional title makes your unit easier to sell and to mortgage, and lenders increasingly require it.
Who manages the common areas? The corporation of unit owners, formed automatically when the sectional plan is registered.
The common problems are buying into a scheme that still runs on the old company-and-long-lease model without appreciating the difference, and assuming the conversion requirement lapsed when the deadline passed. For example, owners sometimes find they cannot easily mortgage or sell because the development never converted. Similarly, management companies that have not registered a sectional plan leave every owner exposed to restrictions on dealings.
Our real estate and property team advises developers, management companies and unit owners on sectional titles: registering sectional plans, converting older long-lease schemes, setting up and running the corporation, and handling the sale and financing of units on their own titles. To review your scheme or a purchase, contact John Maina, Partner, at OLM Law Advocates LLP.
This article is a general guide only and is not legal advice. Please seek advice on your specific circumstances.
OLM Law Advocates LLP advises landlords, tenants, buyers, developers and investors on Kenyan property, from conveyancing and leases to titles and disputes.
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