Transforming Ownership Of Sectional Property In Kenya

Sectional Property Act 2020

The repealed Sectional Property Act of 1987 was unpopular to developers because of its harsh provisions favouring the property’s purchaser. Before the enactment of the Sectional Properties Act of 2020, developers of off-plan townhouses and sectional units used to register the specific units under long term leases which amounted to ownership. The current law is appealing and attractive to the developers due to modification of harsh provisions such as the one that required the property buyers to deposit the initial amount with a trustee instead of paying it directly to the developer.

The Sectional Properties Act, 2020 applies in respect of land held on freehold title or on leasehold title where the unexpired residue of the term is not less than twenty-one (21) years, and there is an intention to confer ownership. The law requires registration of sectional plans, which ought to describe two or more units and be presented to the Land Registrar.

The new law protects the purchaser by establishing a corporation that allows the unit owners to manage the apartment, flat or townhouses. The Act provides that a sectional plan should be accompanied by an application for registration of a corporation and a list of the owners of the units, which can be updated from time to time. Once a sectional plan is registered, the registrar is required to close the register of the mother title of the land where the sectional property sits and open a separate register for each unit described in the sectional plan.

The registrar will then issue a certificate of title if the property is freehold or a certificate of lease if the property is leasehold in respect of each unit of the sectional plan. The owners will then acquire shares in the formed corporation to own the common spaces as tenants in common in shares proportional to the unit ownership. The above law streamlines owning sectional properties in Kenya. Consequently, more investors will venture into the real estate business as developers of sectional units, improving the economy and making it easy to own homes in Kenya. The unit owners will also be able to take a loan using the certificate of ownership as security, hence boosting financial inclusion in the country.

Global Trade Amidst Russia -Ukraine War

The war between Ukraine and Russia has yet again put the global economy at the verge of collapsing even before the world fully recovers from disruptions caused by the COVID19 pandemic. For the past two years, unexpected events have significantly changed the way we do our things. The International Monetary Fund has warned that the fight between Russia and Ukraine could pose a great economic threat that could hurt the anticipated post-covid 19 recoveries. Global economy profoundly remains affected by the negative impact of the pandemic. However, there is slight stability in the second half of 2021 amid Omicron that threw the global markets into a frenzy.

Countries that have economic links with Ukraine and Russia are at particular risk of scarcity and supply disruption and are most affected by the increasing commodity supply. Recently the US government promised to sanction Russia for potential retaliation and this has already seen a push down of stock markets and driven up gas and oil prices. This clash could cause dizzying spikes in energy and food prices, fuel inflation fears and spook investors, a combination that threatens investment and growth in economies around the world.

For Kenya’s economy alone Kenyans have been forced to dig deeper into their pockets because of the cost of fuel due to the strengthening of the dollar relative to Kenya shillings meaning that the country will spend more on imports. This has seen the cost of fuel rise by ksh.5 and a total jump in oil prices which has hit $100 per barrel.

The world’s major economies, from Russia to the US are experiencing a multi-year high in inflation levels due to shortages in the supply of commodities whose demand is growing because of lifting covid-19 restrictions. For Kenya, food prices are expected to rise while imports will suffer delay in delivery. Manufacturing Industries may experience imported inflation which could put further pressure on the shilling against the US dollar. To mitigate the ongoing war the European Union should speedily find a solution to the war to salvage the already suffering world economy caused by Covid -19 pandemic.

Start With Why By Simon Sinek

How Great Leaders Inspire Everyone to Take Action

Sinek describes his book as one ‘about a naturally occurring pattern, a way of thinking, acting and communicating that gives some leaders the ability to inspire those around them’. He depicts different situations where one person or group got ahead of another just because they started with the end in mind. Martin Luther King, the Wright brothers, and Apple are such examples. He later goes on to explain why inspiration, as opposed to manipulation, is a long-term strategy in any endeavour. Unlike inspiration, manipulation of employees and consumers can only last so long and needs to be repeated over and over. This, therefore, leads to the core of inspiration: Why.

To help readers understand, he uses The Golden Circle, which is in essence three circles, each inside another. The outer circle shows what, which everyone has figured out. These are the products, services, and functions of a company or person. The middle circle indicates the How, which is the process or strategy through which said services are offered. The most crucial aspect however is the innermost circle, indicating why…Why do you do what you do? It alludes to purpose more than anything else, and once discovered and defined allows one to think and act from the inside out. Biologically speaking, it is also the ‘Why’ (feeling) part of a human brain that informs decisions and behaviour, not the ‘What’ (thought) part. Having understood the various elements of the Golden Circle, the key now lies in implementing them in the right order: 1. why do it? 2. How to do it? 3. What (Result of the Why)?

According to Sinek, clearly defining the Why of a business or idea attracts people of the same mindset and differentiates believers from passers-by. After this, what follows is defining the ‘how’ of the idea, which basically means having a practical and realistic person or mindset to give guidance. The how puts the why to the ground and produces results. Once these two are established, the next and greatest challenge begins: staying true to the Why. The ability to remain consistently committed to the why is what makes successful leaders. It is what inspires others to follow. The Why becomes the metric by which decisions are analysed? The result of this is that we start assessing ourselves from an internal perspective, seeking to be better, anticipating to outdo ourselves every day!

Eruko Sacco: Deepening Financial Access In Turkana County

Availability and equality to access financial services is key for development of grass-root economies across the country. Access to timely, appropriate and affordable financial products and services promotes financial inclusion which is a key enabler for growth of businesses and for personal development of individuals. In Turkana County, Eruko SACCO Limited is on the frontline to register members, mobilize savings and pursue economic opportunities in the agribusiness sector to maximize returns for members. The SACCO which has its offices in Lodwar town has seen its membership growing overtime and is now present in all the seven sub-counties of Turkana.

The Vision of the SACCO is to be a leading community empowering organization through initiatives that promote sustainable and diversified livelihoods. Eruko SACCO is regulated by the Sacco Societies Regulatory Authority and is governed by a board of nine directors who are elected in an AGM. To execute its mandate of economically empowering its members, Eruko SACCO engages in bee-keeping and production of honey for sale, manufacturing of soap and detergents from natural aloe-turkanensis plants that grow in Turkana County and advancing loans to its members.

The SACCO is on a continuous membership recruitment exercise. For one to become a member, an application form must be completed and submitted to the secretary of the society. Ordinary members are required to pay Kes.500 to join while membership by prescription can be attained by paying an entrance fee of Kes.10, 000. Upon admission of an ordinary member, a monthly savings of at least Kes.500 shall be required from members. Members can access loans twice their Savings after a six months period of consistent saving. Loans attract an interest rate of 12% per annum and must be guaranteed by a member of the SACCO.

Eruko SACCO is a true vehicle for development in North Western Kenya and its impact is being felt right from the grass-root level. The SACCO has strategic partners supporting its development and has enjoyed stability thanks to good leadership. Start your journey of saving and unlocking economic opportunities together with likeminded people by joining Eruko SACCO. Contact the SACCO via or call +254 718 250 315 for enquiries at Eruko SACCO.

Fundamental Insights On Property Investment In Kenya

Hosted by Chams Media in partnership with Purple Dot International on 26th January, 2022

The webinar presenters were: Renu Hunjan a real-estate marketing strategist, Austin Waga head of mortgagees Stanbic bank and Adeel Madhani a legal expert practicing with Mohamed Madhani & Co Advocates. Together, these panelists equipped attendees with critical information on matters property investment. An investment possession is a real estate property, purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property, or both. The property may be held by an individual investor, a group of investors, or a corporation. For third parties, a license allows access to a property at a fee. It could also be a long-term endeavor or a short-term investment. Investment property is also a term that may be used to describe other assets purchased for the sake of future appreciation such as art, securities, land, or other collectibles.

Robert Kiyosaki says, “Real estate investing, even on a very small scale remains a tried and true means of building an individual’s cash flow and wealth”. People, especially Kenyan investors have always had faith in real estate. Anyone interested in property investment of whatever kind, ought to establish at full length, the when, why, what and how of what they desire.  The legal requirements for anyone interested in the ownership of any investment are an identifying document (ID or Passport) and a Kenya Revenue Authority (KRA) pin.  It is important for any prospective buyer to do their due diligence before any commitment; this involves a thorough background search, finding someone locally to physically check things on the ground as photos can be deceptive at times, hiring an independent advocate, personally checking on the property developer, pegging payment on construction milestones and if possible having the bank do it’s due diligence too.

It is safer and easier to purchase properties that are fully managed. It is also critical to consider whether one’s goals can still be achieved, especially putting into consideration a country’s tax obligations. For land purchase, it is important for one to have a physical title deed and also ensure a search is done to verify that they are the rightful owner. For other properties, it’s better to have a sublease than a share certificate.

Finally, those interested in mortgages ought to understand the bank requirements and be aware that the lending bank has to consider their residential status and whether their income is sustainable and verifiable.   

Nutrition Awareness Month: “Eat right with a Nutritionist’s advice”

A long time ago, Hippocrates, the father of modern medicine said, “Let thy food be thy medicine, and thy medicine be thy food.” This sentiment still rings true in our modern day. Every year in March, the Academy of Nutrition and Dietetics observe a “Nutrition Month” that stresses the importance of a balanced diet and exercise. It promotes the transformative powers of healthy food choices, by encouraging using a registered dietitian (RD) to develop and stick with a healthy eating plan.

Between what you hear on TV and read in the news, eating well can seem like a real challenge that doesn’t have to be. A RD will partner with you to develop a safe and realistic eating plan that you can stick with for the long haul. To guide and motivate you, dietitians use creative and out-of-the-box strategies to help with meal planning, grocery shopping and mindful eating.

What an ophthalmologist does for your eyes, a dietitian does to keep your digestive system and body running smoothly, making sure you’re getting the proper nutrients and helping you tailor an eating plan that works best for you. Whether your goal is weight loss, healthy eating, or boosting iron intake. Dietitians work in a range of fields including patient care; mostly in hospitals to offer disease-specific therapeutic interventions, community and public health, and national level to influence policy making, private sector to offer consultancy to groups and individuals, food industry, sports, and research and teaching.  

Anyone can call themselves a nutritionist. However, only an RD has completed multiple layers of education and training established by the Kenya Nutritionist and Dietitians Institute. All RDs must have gotten a four-year degree; a specially designed, accredited nutrition curriculum, completed an extensive supervised program of practice at a health care facility, foodservice organization or community agency, passed a rigorous licensure exam, and maintained continued education credits throughout their career. In addition, some RDs may have certifications in specialized fields, such as sports, pediatric, renal, oncology or gerontological nutrition. 

Do you want to lose or gain weight? Are you pregnant, looking to become pregnant or just had a child? Are you looking for ways to maintain your health in your older years? Are you an athlete looking to boost performance? Do you have a health condition such as diabetes, high blood pressure, stroke, any allergies etcetera? Then you need to seek the expert, science-based advice of an RD.

Worker Cooperatives, Answer To The Future

According to the Population and Census survey carried out in 2019, the data from the exercise revealed that individuals under the age of 35 comprised of 75 percent of the 47.6 million total population. The survey also indicated that the labor force aged 15 to 64 years, made up for 57 percent of the total population in Kenya, of which 29 percent comprised of the youth. This shows that youths have potential capabilities of shaking up the cooperative sector and leaving a footprint in the sand of the industry for other youths to follow.

A worker co-op is a form of co-operative where the members are employees, as the management is concentrated on the commercial aspect of the business, they focus on the social-economic aspect of the workers. Worker cooperatives can provide ways for organizing new forms of work with less dependence on the employer and increased flexibility and collaboration among workers (ILO). Members contribute funds to the cooperative and share ownership costs and liabilities that include but are not limited to risks of ownership. Worker cooperatives are similar to service cooperatives in the sense that, worker co-ops are a type of service co-op offering services to other businesses.

Through the lens of the unemployment rate among the youth in Kenya that was 7.17% as of 2019, worker cooperatives which are becoming embraced globally as an opportunity to take on the service based entrepreneurial journey becomes ideal for youths with start-ups.

In addition to the benefits that a worker co-op offers to a youth in Kenya is the creation of a workspace for them to combine their talents, ideas, and perspectives to achieve common goals such as creating jobs for other youths, performing community service, or promoting workplace democracy.

What makes it successful? Yet the key components that determine the success of worker cooperatives are trust, communication, and cooperation because members form the policies that dictate the cooperative’s daily and long-term operations. Therefore, the question that should really be lingering in the mind of the youth to answer for himself or herself is not whether to join a worker cooperative or not but rather, when he or she will join one.

Is Your Business Online?

Digital migration of businesses into the online space is now a survival tactic that must be embraced by every entrepreneur who wants to keep going. You need to market, display goods, order or showcase services and get paid via digital platforms. Online presence does not necessarily imply that one closes their shop, but that you tap into the traffic of users on the streets of digital media to get new customers and business partners. With presence online, entrepreneurs have been able to reach a larger audience and get more customers and with effective digital marketing strategies, most of them have seen the sales of their products go high.

As an entrepreneur, having social media pages for your business is not enough. It is necessary to set the priorities and objectives of your business right so that you can be aware of what you want to achieve. The advantages that come with having your business online include; selling your products, finding new customers and retainingng the existing ones. How then can you create an online presence?

List your business on a local directory. It is possible to list your business for free on Facebook, Bing or Google my business. This will help your business in a way that when people search for your business it will show up. Building a website can also be beneficial as it can have more information on the business such as opening hours, the products sold, the location of the business. The website can also include a call to action like “buy now” to encourage the customers to purchase your products. It’s also necessary to know how your customers feel about the products they bought from you so getting a review page where they can rate on the website can help you market your business. Setting up social media pages such as Facebook, Twitter and Instagram. These platforms are usually effective in connecting to customers. Social media platforms can also be very good in offering customers special deals. Finally, always use analytics to track down what you are doing and ensure if it is a marketing strategy then it is an effective one. The disadvantage that may result from having your business online is that in case your site crashes no one can access your products and sometimes customers can be impatient when the shipping of the product is delayed.

In conclusion, I believe it is the responsibility of every business to use online tools to serve the existing customers and connect to new ones while remaining relevant in the online space.

The Nitty-Gritty Of A Scientific Banker

Jeremy Awori

Jeremy Awori was born in Kenya in 1971 to a Kenyan father and a British mother. Whilst his father was an engineer, his mother practised law. He has two siblings; a sister and a mentally handicapped brother, whose condition he says has highly contributed to how he (Jeremy) views life and people. In his early years, Jeremy was extremely shy and started swimming to hide it. At the age of 9 he was already a professional swimmer and competed for Kenya while boosting his confidence.

After his secondary school education, Jeremy flew out to the University of Manchester and pursued a Bachelor’s degree in Pharmacy. He attributes his choice of course to the tutelage he got from his father, which moulded him into who he is today. He then worked as a Pharmacist while saving up for his master’s degree. When the time came, he decided to try something new to broaden his career options, so he relocated to Canada and pursued an MBA in Finance and International Business at McGill University.

Jeremy got an opportunity to work at Standard Chartered Bank (SCB) Canada after his MBA. The then CEO was trying his best to keep the branch operational and Jeremy performed outstandingly in his role. This led to a promotion as the head of retail banking, SCB Kenya, at only 28 years old. Soon after, he was transferred to SCB UAE, the fourth largest StanChart market then, as the head of consumer banking. Three years later he was promoted to Regional Sales Director, Middle East, South Asia & Africa. This was followed by yet another promotion to CEO and MD, SCB Tanzania, which was his last role with the bank.

At the peak of his career, Jeremy was offered two options, one at SCB Dubai and the other at Barclays Bank Kenya. His pick was based on two reasons. The first was he wanted his children to experience life at home, as they had mostly lived abroad. The second was that he was passionate about contributing to Kenya and Africa, and that is where he wanted his story to lie. And so Mr. Awori became the next CEO and MD of Barclays Bank Kenya in 2013. He confesses that the bank needed more work than he expected, but is glad that it gave him a far more challenging job. Seven years later, the bank rebranded to ABSA Bank with Jeremy still at its head.

Uncertainty And Financial Markets

We live in an interconnected world thanks to international trade. This interconnectedness has always guaranteed free movement of capital and resources thereby meeting the different needs of the world’s population. International trade heavily relies on the concept of free trade and stability. As such, any instance of political instability as well as unfavourable regulations usually results in capital flight. Previously, markets have always reacted to geopolitical events and this is set to continue since political stability and free markets lay the backbone of international trade. We, therefore, focus on what happens when there is uncertainty in the financial markets. 

In 2017, after the nullification of Kenya’s presidential polls, the stock exchange shed more than 10% of its previous trading, prompting a halt in trading. This was majorly driven by sell-off in the listed blue-chips. Bearing in mind that our market is dominated by foreign investors, any uncertainty would result in a sell-off. This was replicated in the 2020-2021 period when most investors sought for safeguards against the coronavirus pandemic. Data from the said period indicated that foreigners were net sellers which ended up boosting local investor’s holdings in certain companies such as KCB. 

Another negative effect of uncertainty in any country would result in their currency depreciating against the dollar. Since international trade is settled in dollars, any uncertainty forces sell-offs. With this huge sell-off by foreign investors, there is increased demand for foreign currency which puts pressure on our local currency. As such, it will cost you more to buy the dollar due to increased demand. This is the same effect the Russian Ruble is going through as investors and companies dump their securities. 

Any country suffering from internal issues is normally isolated from the global system with ramifications such as sanctions and being shut from the global payment system. Trade sanctions might impede free flow of capital and goods as foreign companies are not allowed to trade with the sanctioned country. A case example is Zimbabwe who have borne sanctions for the longest time after the government’s infringement on property rights. Another case example is Russia who have been locked out of the global payment and settlement system (SWIFT) for invading a sovereign state.

Any uncertainty be it global or local, shall automatically result in negative effects towards the local economy. These effects often lead to isolation as capital always goes where there exists security and attractive returns.