In Nairobi’s Enaki Town luxury apartment development, more than 100 homeowners are facing uncertainty and concern due to post-sale lease agreements that introduce contentious clauses.
These homeowners, who primarily invested in their properties during the development phase, have raised multiple issues in their lease agreements, which have left them feeling apprehensive about their property rights and freedom of management.
One of the central points of contention revolves around a clause designating the real estate firm Hass Consult as the exclusive letting agent for the Enaki management company. This clause obligates property owners to pay a fee each time they secure a tenant for their unit, even if they find the tenant independently or through a third party. Additionally, if an owner wishes to withdraw their property from the rental market, they would be liable to pay a substantial fee equivalent to 50% of the full fee.
Concerns have been raised about potential conflicts of interest due to Hass Consult’s significant ownership stake in Rosslyn Suites Limited, the developer. This concern is amplified as the CEO of Hass Consult, Mohammed Hassanali, also serves as a director in the development company.
Homeowners claim that they were not provided with the final lease document concurrently with the sale agreement, deviating from typical industry practice. They received the lease document when they were already financially committed to the property transaction, leaving them feeling pressured to accept unfavorable terms or abstain from formalizing the agreement.
In their demand letter, homeowners argue that the disputed clause raises numerous legal questions, particularly regarding the implications of restricting property owners from directly managing their rentals. They believe that this not only erodes their autonomy as property owners but may also run counter to fundamental principles of property rights and the freedom to engage in lawful transactions.
Enaki Town, situated in Nyari, is promoted by Hass Consult as the epitome of resort-style living, offering top-notch hospitality, convenient amenities, and diverse resident experiences. The development features one to four-bedroom residences with prices starting at KES 10 million and includes luxurious amenities like swimming pools, a gym, a dance studio, and a 6.3-acre Botanical Garden, which is also a point of contention.
The controversy surrounding the lease clauses in Enaki Town has left over 100 homeowners in a state of anxiety as they grapple with potentially disadvantageous terms and restrictions on their property management rights.
The lack of transparency and concerns about conflicts of interest add to the unease. It remains to be seen how this dispute will be resolved and whether it will lead to legal action against the developer. Hass Consult’s lack of response to the homeowners’ concerns only adds to the uncertainty in this ongoing dispute.
