Trans Nzoia Senator Allan Kiprotich has moved to combat fraud in the real estate sector by proposing a bill aimed at establishing the Real Estate Board.
According to the bill, the board will oversee the regulation and registration of real estate agents and projects.
The Real Estate Regulation Bill, 2023, includes provisions for annual licensing of real estate agents, specifies registration cut off dates, and outlines sanctions for those who fail to register.
Senator Kiprotich's proposed measures include imposing a fine of Ksh5 million or a two-year prison sentence, or both, on anyone found guilty of operating without a license.
The board will be required to make a decision on authorizing or denying the licensing of a real estate agent within 28 days, taking into account the relevant requirements.
Further, the board will be responsible for maintaining a publicly accessible database containing information on registered real estate agents and real estate projects.
In his piece of legislation, Chesang observes that the real estate industry currently generates approximately Ksh100 billion annually; however, there is potential for growth if rogue real estate agents are weeded out.
"The Bill regulates real estate agents and real estate projects. Paragraph 8(d) of Part 2 of the Fourth Schedule to the Constitution designates housing as a function of county governments. The provisions of the Bill will therefore have an impact on the discharge of devolved function by county governments," Chesang explained.
Senator Kiprotich also wants developers to fulfill their specified responsibilities, including securing insurance for real estate projects, facilitating title transfers, and adhering to approved plans and project specifications, among other obligations.
"Where a real estate project is to be developed in phases, every such phase shall be considered a separate real estate project and the developer shall obtain registration under this Act for each phase separately," reads part of the bill.
The proposed bill also seeks to ensure buyers have the right to access information regarding approved plans and the projected completion schedule of real estate projects, including approvals from relevant authorities.
In March, another legislator, Kirinyaga Central Member of Parliament Joseph Gachoki, suggested that land-buying companies should be subjected to a Ksh500 million license fee.
The MP clarified that this measure aimed to safeguard Kenyans who often found themselves ensnared by land-buying companies.
In January, Thika residents took to the streets to demonstrate after losing approximately Ksh1 billion to a well-known land-buying company.
