Strata Title Management Rules (Kenya)

A Strata Title Management Rules in Kenya records the strata title management rules and the particulars that give it legal effect.

The management corporation is a body corporate that comes into existence automatically upon the registration of the sectional plan at the Land Registry under Section 17 of the Sectional Properties Act No. 21 of 2020. Every proprietor of a unit in the strata scheme is, by law, a member of the management corporation. The management corporation holds and manages the common property — including entrance lobbies, lifts, staircases, roof, external walls, car parks, gardens, swimming pools, and communal utilities — on behalf of all unit proprietors. The management corporation has perpetual succession and may sue and be sued in its corporate name.

Strata Title Management Rules — also referred to as by-laws or house rules in different Kenyan developments — are the specific operational rules adopted by the management corporation governing the day-to-day use of common property, behaviour of unit proprietors, levy collection, maintenance obligations, dispute resolution, and governance of the management committee. Section 18 of the Sectional Properties Act No. 21 of 2020 empowers the management corporation to make by-laws for the control, management, administration, use, and enjoyment of units and common property.

The Physical and Land Use Planning Act No. 13 of 2019 administered by the County Government and the Cabinet Secretary responsible for lands provides the planning framework within which sectional developments are approved. Section 58 of the Physical and Land Use Planning Act No. 13 of 2019 governs subdivision and development approvals. The County Government physical planning department issues development approval for the construction of multi-unit buildings, and the sectional plan must conform to the approved development plans.

The management corporation must be registered with the Registrar of Companies or the relevant Land Registrar, maintain financial accounts, hold annual general meetings, and comply with the Sectional Properties Act No. 21 of 2020 obligations. The Sectional Properties Regulations 2021 issued under the Act prescribe the form of sectional plans, the content of by-laws, and the procedures for levy collection, dispute resolution, and compulsory acquisition of units in default of levy obligations.

Kenyan financial institutions including commercial banks and mortgage companies regulated by the Central Bank of Kenya (CBK) lend against sectional units as collateral. A mortgage over a sectional unit is registered as a charge under the Land Registration Act No. 3 of 2012. The management corporation's rules — including levy obligations — bind all unit proprietors and mortgagees who take the unit as security.

Strata Title Management Rules in Kenya are required whenever a sectional property development is being established, an existing management corporation is reforming its governance, or unit proprietors in a multi-unit building need a written framework for shared property management.

Strata Title Management Rules are needed at the inception stage of a sectional property development when the developer, having registered a sectional plan at the Ministry of Lands and Physical Planning under the Sectional Properties Act No. 21 of 2020, must establish the management corporation's operating framework before the first unit is sold to a purchaser. Purchasers of sectional units are entitled under Section 18 of the Act to receive a copy of the management rules before signing a sale agreement.

Strata Title Management Rules are required when an existing multi-unit apartment block or commercial building in Kenya has been operating informally — through an informal residents' association — and the proprietors now wish to formalise their structure by registering a proper management corporation with enforceable levy and maintenance obligations under the Sectional Properties Act No. 21 of 2020.

Strata Title Management Rules are needed when a sectional development's existing by-laws are outdated, incomplete, or silent on issues such as short-term letting platforms (Airbnb), electric vehicle charging installations, solar energy installations, or broadband infrastructure, and the management corporation's annual general meeting resolves to adopt amended rules.

Strata Title Management Rules are required when a financial institution providing mortgage finance over a sectional unit in Kenya requires documentary evidence that the management corporation operates under formal written rules, with levy collection procedures, building insurance obligations, and maintenance fund requirements clearly stated, as a condition of mortgage approval.

Strata Title Management Rules are needed when a county government's physical planning department or county licensing authority requires evidence of a formal management structure for a multi-unit development as part of a planning compliance review or building occupation approval under the Physical and Land Use Planning Act No. 13 of 2019.

Parties in Kenya should prepare a Strata Title Management Rules (Kenya) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Land Act No. 6 of 2012, the National Land Commission (NLC) manages public land in Kenya. Section 56 of the Land Registration Act No. 3 of 2012 governs land transfers. The Environment and Land Court (ELC) has exclusive jurisdiction under Article 162(2)(b) of the Constitution of Kenya 2010. The Land Control Act (Cap. 302) requires Land Control Board consent for agricultural land transactions. The Stamp Duty Act (Cap. 480) imposes duty on property transfers at rates of 2% (rural) and 4% (urban). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

Kenya Strata Title Management Rules under the Sectional Properties Act No. 21 of 2020 must address the following elements to be enforceable and operationally effective.

Management Corporation Identity: The full name of the management corporation — typically "The Management Corporation of [Development Name] Sectional Plan No. [SP Number]" — the Land Registry reference, the development address, county, and the number of units in the scheme. The sectional plan number registered at the Land Registry under the Land Registration Act No. 3 of 2012 must be cited.

Membership and Voting Rights: Every proprietor of a unit in the scheme is a member. Unit entitlement — the proportionate share allocated to each unit based on floor area or as specified in the sectional plan — determines each proprietor's voting rights and levy liability. Voting procedure at general meetings, quorum requirements, and proxy voting must be specified.

Management Committee: The composition of the elected management committee (minimum 3 members), the term of office (typically one to three years), election procedures, removal of committee members, and powers delegated to the committee for day-to-day management must be stated.

Levies and Maintenance Fund: The formula for calculating annual levies based on unit entitlement, the frequency of levy payments (monthly or quarterly), the consequence of default — including interest on late levies and the right of the management corporation to recover unpaid levies as a debt under Section 32 of the Sectional Properties Act No. 21 of 2020 — and the establishment of a sinking fund for capital expenditure.

Common Property Use Rules: Restrictions on the use of common property — including car parks, swimming pools, gyms, lifts, lobbies, and garden areas — noise restrictions, pet policies, prohibited activities, and hours of use. Rules on alterations to units that may affect common property or structural elements must be included.

Maintenance and Repair Obligations: The distinction between the management corporation's obligation to maintain and repair common property, and the unit proprietor's obligation to maintain their own unit. Emergency repair procedures, insurance obligations (building insurance by the management corporation, contents insurance by unit proprietors), and contractor procurement must be addressed.

Dispute Resolution: The internal dispute resolution procedure — complaint to the management committee, mediation, and then arbitration under the Arbitration Act No. 4 of 1995 or application to the Environment and Land Court — must be set out. The Environment and Land Court has jurisdiction over sectional property disputes in Kenya.

Amendment of Rules: The procedure for amending the management rules — special resolution at a general meeting (75% majority), filing of amended rules at the Land Registry under the Sectional Properties Act No. 21 of 2020 — must be specified.

The forms-legal.com Kenya Strata Title Management Rules template provides a compliant framework aligned with the Sectional Properties Act No. 21 of 2020 and the Sectional Properties Regulations 2021, accepted by the Ministry of Lands and Physical Planning and financial institutions operating in Kenya.

Additional compliance elements for a Strata Title Management Rules (Kenya) used in Kenya include: Under the Land Act No. 6 of 2012, the National Land Commission (NLC) manages public land in Kenya. Section 56 of the Land Registration Act No. 3 of 2012 governs land transfers. The Environment and Land Court (ELC) has exclusive jurisdiction under Article 162(2)(b) of the Constitution of Kenya 2010. The Land Control Act (Cap. 302) requires Land Control Board consent for agricultural land transactions. The Stamp Duty Act (Cap. 480) imposes duty on property transfers at rates of 2% (rural) and 4% (urban). Forms-legal.com provides this template as a starting point for Kenya-compliant documentation.