All You Need To Know: Kenya Real Estate Developers Regulatory Board

By Soko Directory Team / September 21, 2020 | 2:40 pm




In July 2020, a committee appointed by the Principal Secretary, State Department for Housing and Urban Development, recommended the establishment of the Real Estate Developers Regulatory Board, “REDRB”, by October 2020 through an executive order subject to the Cabinet’s approval.

The establishment of the board is aimed at promoting a transparent, efficient, and competitive real estate sector, protecting the interest of the sector players and restoring investor confidence through safeguarding buyers’ deposits as well as providing a speedy dispute resolution mechanism between developers and home buyers.

The Key functions of the Real Estate Regulatory Board will include;

(i) registering, licensing, and regulating real estate developers

(ii) de-registering rogue developers

(iii) registering housing projects intended for sale to the public by developers

(iv) publishing and maintaining a website of records

(v) creating a transparent and robust dispute resolution mechanism between developers and buyers

(vi) collecting and analyzing data on real estate development in the housing sector

The establishment of the Board is expected to positively impact on the real estate sector, with some of the expected benefits being;

(i) development of a clear regulatory framework for a real estate development

(ii) Protection of deposits and interests of unit buyers

(iii) protection of interests of real estate developers

(iv) fostering transparency in the sector

(v) encouraging professionalism in the real estate sector by eradication of unscrupulous developers,

(vi) increase in delivery of property and especially housing units

We expect REDRB to face challenges in the strive towards regulating the real estate sector. Some of the key challenges will include;

(i) bureaucracy and delay in the registration process which may hinder the timely delivery of projects due to backlog in project approvals as the Board strives to ensure top-notch compliance by all developers

(ii) corruption in the regulation process as some developers strive to cut down on the registration and approval process before undertaking development projects

(iii) non-compliance by some developers who may be unwilling to adapt to the set guidelines and rules set to be introduced by the Board

(iv) lack of adequate public sensitization on the existence of the Board and its functions which is likely to make it difficult for the Board to protect the public interest through a complicated legal structure.

In conclusion, Real Estate developers have successfully been regulated in other jurisdictions such as in Dubai and Jamaica through the establishment of either an authority or a Board.

Therefore, the establishment of the Kenya Real Estate Developers Regulatory Board is a step in the right direction especially in the wake of a booming property market, amid increasing cases of fraudulent market players.

Once formulated and operational, we expect the Board to promote the growth of an impartial, transparent, efficient, and competitive real estate sector that will be essential in restoring investor confidence and enhancing the growth of the economy in general.





About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author







Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (214)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (185)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950