Over 100 homeowners are living in fear of ceding freedom of property use in Nairobi’s Enaki Town development luxury apartments, after the developer introduced controversial clauses to a post-sale lease agreement.
In a demand letter by the owners’ lawyers to the directors of the developer Rosslyn Suites Limited and seen by The Kenyan WallStreet, the owners, majority of whom paid for their houses during the development stage, highlight multiple issues in the lease agreement.
Among the main clauses in contention is one that stipulates that the real estate firm Hass Consult “is the sole and exclusive letting agent appointed by the Enaki management company…for the rental of all units at Enaki.” It also says that property owners must remit a fee each time a tenant occupies their unit, even if the owner secures a tenant independently or through a third party. The clause also says that “If, for any reason, the Owner would like to withdraw the property from the rental market…a fee of 50% of the full fee shall be payable…”
According to business records, Hass Consult is the biggest shareholder in Rosslyn Suites Limited. Hass Consult’s biggest shareholder is, in turn, its founder and CEO Mohammed Hassanali, who is also a director in the development company.
The homeowners say they were not provided with the final lease document with the sale agreement, which is not common industry practice where both documents are sent together.
The homeowners say they were given the ‘lease’ document at “a point in time when we were already financially committed to the property transaction.”
In the letter, the homeowners also claim that they have been denied access to their houses until they sign the lease agreement, whose terms the developer has said cannot be changed, and that they “…must either acquiesce to disadvantageous terms or abstain from formalising the agreement.”
Enaki Town Prices Start from Kshs. 10 million
On its website, HassConsult describes the Nyari-based Enaki as the epitome of resort-style living. The luxury facility has top-notch hospitality, convenient amenities, and diverse resident experiences. The residential resort features 1-4 bedroom residences, with prices starting from Kshs. 10 million. It also includes swimming pools, a gym, a dance studio and a 6.3 acre Botanical Gardens. Access to the Botanical Gardens is also a point of contention.
In the letter, the homeowners lawyer argues that the clause “brings to the forefront a host of legal questions that demand thorough analysis, particularly considering the implications of restricting property owners from managing their rentals directly.” He says this not only restricts the buyer’s autonomy as property owners but also potentially contradicts fundamental principles of property rights and the freedom to engage in lawful transactions.
Hass Consult did not respond to repeated attempts at contact.
According to an advert posted on a Facebook group, the monthly rent for one and two bedroom apartments in the development ranges from KShs. 90, 000 to Kshs. 150, 000. Some of the units attract rent from KShs. 225, 000, according to the Hass Consult website.
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