Like any other investment, Real Estate has its fair share of risk. The first rule before venturing into real estate business is to conduct due diligence. Knowing laws and regulations governing any form of Construction plays a bigger part in conducting due diligence. We explore these laws and regulations;
National Construction Authority Act
NCA is the body in charge of overseeing the construction industry in Kenya and coordinating its development. The Act outlines the scope of the authority, so if you are a developer, it would be beneficial to understand the stipulations within it.
The Planning Act.
Zoning regulations are laid in the planning act which help to know how much ground coverage you can have, the maximum floor heights and various setbacks required. Developers are required to pay attention to issues that affect the type of development you are putting up and ensure that this complies with the zoning regulations. One should ask himself/herself the following questions; Will construction cause environmental hazards? Are you building in a commercial or residential area? Is the land in a flooding area?
Kenyan Building Code.
We have the Kenyan Building Code for structures, which provides comprehensive guidelines on how construction should take place. It also outlines the minimum requirements in a building.
The Water Act.
Water Act under the Water Resources Authority is also very clear on providing regulations and guidelines on management and use of water resources.
Other Regulations which are critical and worth checking are; Environmental Management and Coordination Act through the National Environmental and Coordination Act; The Kenya Urban Roads Authority (KURA), which is a State Corporation in the Ministry of Transport; Infrastructure, Housing, Urban Development and Public Works, and can provide guidelines on areas marked as road reserves
It is very important to understand the rules and regulations before putting up any structure to avoid unnecessary demolitions from the regulatory bodies. Understanding the various stipulations will ensure you remain compliant and reap the most from your real estate business.