Kenya’s urban landscape is rapidly transforming due to the population growth and subsequent increased demand for housing. Although high-rise developments alleviate the housing demand to some extent, they pose serious risks to the residents in the area. These risks include, environmental degradation, damaged infrastructure such as roads, sewers, water supply, stormwater drains and power supply, loss of privacy, loss of green spaces, noise, and air pollution. For those at risk, the law provides avenues to challenge developments in their neighbourhoods.
We have extensive experience and insight into all aspects of land law and property transactions in Kenya. Whether structuring a complex development project or assisting in the purchase of a new property, our team takes a result-oriented, strategic approach to negotiate, document and complete all aspects of property transactions.
Some of our clients in the real estate market include:
- Real estate developers
- Entrepreneurs
- Owners and tenants of commercial and residential buildings
- Shopping centers and malls
- Hotels
- Schools
- Multiresidential developments
- Mixed-use developments
IKM keeps clients abreast of any developments in the law and guidelines relating to land transactions through its ‘Alert’ service.
Our clients benefit from our significant experience in handling complex, long-term projects that involve drafting documentation, facilitating negotiations, navigating legal and regulatory issues and, when necessary, litigating on their behalf.
Experience includes:
- Acted for a leading real estate company in the sale of high-end loft apartments located at the Two Rivers International Finance & Innovation Centre (previously known as Two Rivers Development (one of the largest mixed-use developments in Nairobi, Kenya and private services-focused Special Economic Zone in Kenya).
- Acted for a client in regularizing the occupation and use of 300 residential units at a Karen development by ensuring compliance with current land laws and regulations and addressing requirements under the Sectional Properties Act 2020 and related land conversion processes.
- Acted for a developer in the acquisition of land, construction and sale of apartments in Lavington, Nairobi, Kenya. The transaction involved carrying out due diligence on the land and titles, review and completion of the sale agreement with respect to acquisition of the land, completion of a “change of user” process, preparation of offer letters, agreements for sale and leases, the incorporation of the management company and subsequent registration of the leases to the various unit purchasers.
- Acted for a leading investor in connection with an expansion plan of its integrated mixed-use development comprising a hotel with two hundred and fifty rooms, a mall and offices, including preparing all agreements relating to project construction retail shop leases and advising on the overall corporate and management structure to ensure the intended mixed-use development is achieved.
- Acted for a major Chinese port construction and design company in connection with its proposed development of a special economic zone in Dongo Kundu, Mombasa, under a public-private partnership The development included residential units, bonded warehouses, industrial units, commercial and recreational facilities. The development was to be undertaken in phases which included the construction of three berths at Dongo Kundu, Mombasa County intended to serve East Africa with oil pipelines to South Sudan and railways to Ethiopia and Uganda from the Indian Ocean coast.
- Advised a Chinese corporation client on the acquisition of various properties in Nairobi for purposes of construction of luxury office and apartment complexes. The transactions involved carrying out due diligence on the properties at the relevant land registries and survey offices, confirming with the local authorities the permitted use of the properties, preparation and negotiation of the terms of the sale agreements, preparation and registration of transfer documents, finalization of titles in the name of the client and post registration due diligence.
- Acted for a leading global manufacturer of consumer products in relation to the development of a manufacturing plant in Kenya. The transaction involves the purchase of approximately 70 acres of land. IKM is assisting the client in identifying the most suitable parcel of land to be acquired for the manufacturing plant. This involves reviewing and negotiating the terms of sale of the property, advising the client on the necessary permits required in respect of the manufacturing plant, advising on change of user of the property in light of the intended mixed-use development. The brief also involves registering transfers at the Land Office.
- Advised a beverage company in the acquisition of property in Nairobi to construct its head office. The transaction involved carrying out a due diligence on the property, confirming with the local authorities the permitted user of the property, preparing, and negotiating the terms of the sale agreements, preparing and registering the transfer documents, and obtaining titles in the name of the client. Once the sale transaction was completed, we coordinated the application for change of user of the property from residential to commercial and acted generally for the client during the construction of the offices.
- Advised a leading construction company on the acquisition of two properties to be used for construction of warehouses. The transaction involved carrying out due diligence in respect of the properties, negotiating the agreement for sale and advising on the subsequent applications to the relevant authorities on the change of user from agricultural to light industrial to facilitate construction of warehouses and offices. IKM was also required to advise the client on the impact of the invasion of the properties by squatters claiming an interest in the properties which issue arose upon conducting due diligence. We have been involved in rendering opinions regarding the risks associated with purchase of properties and how to address these so that the sale can be concluded.
- Ranked in Real Estate (Chambers & Partners 2018 - 2024)
- Ranked in Real Estate (The Legal 500 2018 - 2024)
We are delighted to be a contributing firm, for the fifth year in a row, to the Real Estate Law & Practice Guide 2025 (Kenya) with Chambers Global Practice Guides. The publication features over 50 jurisdictions worldwide. Our commentary on the real estate, finance and related sectors in Kenya provides expert insights on the impact of disruptive technologies, recent proposals for legal reform, industry trends and recent deals, real estate investments (REITs) and other investment vehicles, construction and tax among others.
The Sectional Properties Act, 2020 (SPA) marked a significant shift from its predecessor, the Sectional Properties Act, 1987 in regulating management of sectional properties. One distinction between the two statutes lies in the governance structure, with the SPA mandating the formation of a corporation.
The COVID-19 pandemic ushered in a new era in Kenya which forced different industries across the country to adapt and acclimate to the new normal. The legal sector rose to the challenge by embracing digital transformation to streamline and ease business processes.
While Kenya is blessed with some natural resources, the country has always faced challenges in ensuring that benefits derived from these resources are shared in an equitable manner. Often, the host communities have complained that they are getting the shorter end of the stick.