Last Updated April 30, 2019

Law and Practice

Contributed By MMC Africa Law

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MMC Africa Law was established in 1995 and is headquartered in Spring Valley, Nairobi, with a full-service office in the coastal city of Mombasa. The firm is made up of 12 Partners and over 30 lawyers with expertise in a wide variety of legal matters. As well as being a member of ALFA International, a global network of independent law firms, it has a close association with the leading global law firm of Orrick, Herrington & Sutcliff LLP. MMC Africa Law’s dedicated real estate team comprises three partners and 12 lawyers who pride themselves on their extensive experience handling sophisticated and complex transactions such as those relating to mixed-use developments, an emerging market in real estate. The team also offers specialised services in urban regeneration projects, construction law, REITs, hospitality and hotels, residential developments, commercial and farmland leases, land use and planning, environmental compliance, contractual agreements, conveyancing and conducting due diligence on property.

The main market trends in the real estate sector in Kenya have been as follows:

  • The Government of Kenya is working towards providing affordable housing for its citizens. This has been necessitated by the housing deficit that has been brought about as a result of the mushrooming populations in urban areas due to rural-to-urban migration. In order to achieve this, the Government has proposed the establishment of a housing fund into which employees will be make mandatory monthly contributions. The affordable housing framework requires a developer to build houses priced at a maximum of KES3 million (USD30,000), with the Government guaranteeing offtake in three years.
  • There has been an emergence of master-planned communities in Kenya through the creation of alternative cities – mixed-use developments such as Tatu City, Infinity and Tilisi that have arisen as a result of development in other cities. These alternative cities are built with a focus on the principles 'live, work and play'; they include industrial, commercial, retail and residential development as well as schools, hospitals and recreational facilities.
  • Devolution, which was introduced in 2010, has also changed the real estate sector significantly. This is because unlike under the previous regime in which Kenya only had a centralised government, leading to concentrated real estate development in Nairobi, Mombasa, Kisumu and a few other large towns, real estate developers now have a choice of 47 alternatives (ie, the county government headquarters) in which to venture.
  • In order to reduce operating costs and provide a safe and healthy environment for workers, developers have been employing green building technology. This has proved to increase employee productivity. Green building entails the creation of structures that have low environmental impact throughout their life cycle, encompassing their design, construction, operation, maintenance, renovation and demolition.

The most significant deals in real estate in Kenya have been Tatu City, Tilisi Development and Konza City.

MMC Afica Law

MMC Arches,
Spring Valley Crescent,
Off Peponi Rd.
Westlands

+254 020 2329898

+254 720 585 785

eomulele@wakili.com www.wakili.com
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MMC Africa Law was established in 1995 and is headquartered in Spring Valley, Nairobi, with a full-service office in the coastal city of Mombasa. The firm is made up of 12 Partners and over 30 lawyers with expertise in a wide variety of legal matters. As well as being a member of ALFA International, a global network of independent law firms, it has a close association with the leading global law firm of Orrick, Herrington & Sutcliff LLP. MMC Africa Law’s dedicated real estate team comprises three partners and 12 lawyers who pride themselves on their extensive experience handling sophisticated and complex transactions such as those relating to mixed-use developments, an emerging market in real estate. The team also offers specialised services in urban regeneration projects, construction law, REITs, hospitality and hotels, residential developments, commercial and farmland leases, land use and planning, environmental compliance, contractual agreements, conveyancing and conducting due diligence on property.

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