(Nairobi) – The real estate sector is an important part of Kenya’s economy, contributing about 7-10% to the country’s Gross Domestic Product (GDP). However, the sector’s growth is being hindered by a significant issue: the presence of unqualified agents, often referred to as “quacks,” who pose serious challenges to the industry’s development.
The Estate Agents Registration Board (EARB), which oversees the registration and regulation of estate agents in Kenya, has pointed out that these fake agents lack the necessary expertise and ethics to conduct property transactions properly. As a result, the sector faces serious risks, including fraudulent activities and poor service delivery, which damage both the reputation of the industry and the financial security of those involved.
To address these concerns, the EARB has launched a five-year strategic plan aimed at professionalizing the real estate industry. The plan focuses on creating a clear distinction among estate agents based on their qualifications, experience, and areas of expertise. This approach will allow individuals interested in entering the profession to apply for registration according to their level of training. It also recognizes that Kenya’s real estate market is diverse, requiring varying levels of expertise depending on the role. For example, the requirements for a property manager, who needs a certificate in property management, are different from those of a land broker.
The presence of unqualified agents in the real estate sector has exposed Kenyans to fraudulent activities. A survey by the Kenya Property Developers Association (KPDA) in 2022 revealed that nearly 30% of real estate transactions in Nairobi involved fraudulent practices, including fake property listings and forged ownership documents. These scams are often carried out by quacks, who have led to significant financial losses for buyers and undermined the sector’s trustworthiness.
The EARB’s strategic plan aims to address these issues by focusing on compliance and the enforcement of laws regulating estate agency practices. This will involve cracking down on fraudulent agents and imposing heavy penalties on those found engaging in illegal activities. By strengthening enforcement, the board hopes to create a more transparent and trustworthy environment that will attract both local and international investors.
Looking to international examples, countries like the United Kingdom and Australia offer useful models for professionalizing the real estate sector. In the UK, the introduction of the Property Redress Scheme and mandatory registration for estate agents has helped reduce fraud and increased consumer confidence. Similarly, in Australia, the Real Estate Institute enforces a strict code of conduct that ensures professional standards in real estate transactions. These measures have helped create more stable and transparent real estate markets, which in turn boosts economic growth and attracts investment.
In Kenya, the focus is not only on registration but also on continuous professional development for estate agents. The EARB’s plan includes mandatory training programs that will ensure agents stay updated on emerging trends in the market, customer service skills, legal requirements, and ethics. This ongoing education will ensure that estate agents remain competent and capable of providing high-quality services.