Real estate players say they are in the dark over a proposal that seeks to compel land-buying companies to deposit Sh500 million before being registered.
They said they were not party to the proposed law set to be introduced in Parliament for debate.
Kirinyaga Central MP Joseph Gitari has given notice to National Assembly Speaker Moses Wetang'ula seeking clearance to introduce a private member’s Bill to regulate land-buying companies.
The bill aims at protecting land buyers in Kenya from fraudulent practices and the Sh500 million deposit is meant to cushion customers.
However the Association of Real Estate Stakeholders said hey were unaware of the draft Bill.
"We have not received or seen such proposal and cannot discuss it. We therefore decided to come up as self-regulation players," said Nyota Njema Real Estate CEO Perminus Kariuki who is also an official.
The association said it will be the sole point of reference for the real estate market as buyers and sellers can call for transaction confirmation.
New members have to show a certificate of incorporation, list of directors, and a Kenya Revenue Compliance Certificate.
"The biggest challenge we face in this sector is lack of regulation. We are looking forward to a proper supervision policy framework put in place," added the CEO of Miliki Properties, Martin Njoroge.
The proposal comes at a time when the country has witnessed a rise in land fraud.
In 2017, the Ministry of Lands recorded 7,052 cases of property fraud, which could be costing the economy about Sh60 billion annually, according to Cesare Mbaria, the Director of Survey.
According to Kenya Nation Bureau of Statistics, the sector is the second largest contributor to the countries Gross Domestic Product after agriculture.
Real estate offers two million direct job and five million jobs indirectly.
Forty per cent of diaspora remittances are also handled by the real estate sector.
