On 25 February 2025, the Kenya High Court has issued an important ruling regarding an off-plan property dispute. This ruling sheds light on the legal consequences of delayed completions, defects and failure to hand over possession by a property developer. The court’s decision makes it clear: developers who fail to deliver on their promises could face severe financial repercussions.
In this particular case, the purchaser entered into an agreement for sale, with the developer stipulating that the development project would be complete either 15 days after the issuance of a completion certificate by the developer’s architect or at the latest by 30 April 2015.
Despite paying the entire purchase price, the developer failed to meet the agreed-upon completion date and additionally left the property riddled with defects when it was finally handed over to the purchaser. To make matters worse, the developer’s agents delayed handing over the property, even after a formal completion notice was issued by the purchaser.
The Court found that the purchaser had fulfilled their obligations under the sale agreement and that the developer had breached its obligations under the agreement.
The Court held that the purchaser was entitled to: a refund of the entire purchase price with interest; a refund of monies spent on attending to the defects in the property; payment for loss of income on a monthly basis; and costs of the suit.
According to Cornelius Kigera and Alex Njage, who are Partners at Bowmans Kenya, the ruling serves as a clear reminder and warning to developers: that meeting deadlines and delivering quality properties is an enforceable obligation.
“For a long time, developers have treated timelines in sale agreements as a moveable target,” they said. “To deal with unavoidable delays, developers should ensure that their sale agreements include provisions for extensions of time and ensure to set clear expectations with their buyers.”
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