Economies interdependent

The economies of world nations are today interdependent. That’s why most regions are working hard to integrate into trading blocs. In today’s world, no single national economy can stand alone. Every nation requires investors from within and without for sustainable growth. Kenya is no exception. At the moment, Kenya particularly looks upon foreign investors to grow its agri-based and mineral extraction industries. But foreign investors need suitable land under leases for durations sufficient to incubate business and make profits. The investors need to feel secure with the land leases and subsequent agreements for the use of the land. Managers entrusted to oversee this must beware the sensitive nature of their role. If well done, the use of land rights by non citizens and foreign investors should result in a win-win outcome for themselves and the land owning individuals or communities and the State. All actions and utterances on land matters must therefore take into account this symbiotic relationship.

Conversion of non-citzen owned 999 year leases and freeholds

This is why the ongoing exercise by the national land commission to regularize titles held by foreign land owners is of great national importance. The initial timeline given by the commission for the notification of such titles expired. Yet, from reports by the commission, not enough non citizen land owners visited Ardhi House as requested. The commission has recently given a thirty day extension and enlisted our foreign missions to escalate the message so that more land owners get to know and report to Ardhi House with their titles.

What the commission has embarked on is noble and constitutional. Indeed, it comes rather late. The constitution required that at promulgation, any freehold land in Kenya held by a non citizen reverts to the State to be regranted as a ninety nine year lease at peppercorn rent to the owner. And leases for terms greater than ninety nine years held by persons who are not citizens were to convert to ninety nine year leases. But this was not promptly done. Indeed, some non citizen land owners have kept seeking clarity from the Lands Ministry on the fate of their leases without luck. Yet, the implications of the constitutional requirements have had direct implications to market transactions. See, a non citizen land owner who still holds a freehold title or a 999 year land lease would have difficulties putting such a property in the market for sale. Buyers could cite the constitutional conditions and keep away. Such land owners have therefore been greatly inconvenienced by the institutional delay in providing needed clarity or replacing the affected titles. This is why the current exercise by the commission should be expedited. It will unlock market opportunities.

Allay fears of possible loss of land and keep tone of public notices friendly

So besides treating the exercise with urgency, the commission should ensure that any public notices or pronouncements on the matter are kept clear and friendly. Some of the affected non citizen land owners have this fear that there may be some ulterior intentions, including the possible loss of their land, if they came to register. Such fear should be allayed. And it’s upon the land commission to explore how best to reassure the affected. One also hopes that some transparent and predictable institutional mechanisms for the conversion, including a desk to respond to pertinent questions by the affected, will be put in place to guide the exercise.

Clearly, the tone and pace the commission sets on this matter will affect the perceptions of prospective foreign investors. They will be keenly reading the associated public notices and utterances to gauge how Kenya as an investment destination treats property rights.