Valuation unit: Capacity

Getting attached to the national land commission’s valuation section, which is charged with the valuation of land for compulsorily acquired land, has become a career hazard. One could easily find themselves accused of helping to falsify compensation payments, in collaboration with conniving landowners. This has happened to a number of officers in the Commission, at senior and middle level. Unfortunately, the few valuers in the section have to contend with heavy workloads, thanks to the numerous ongoing public projects. This is therefore one section that the commission must constantly watch, and support as best possible. Its capacity needs enhancement.

Exaggerated costs of land

But the problem is broader. Where acquisition of land for public projects such as roads, railways or dams must happen, some shrewd landowners will never hesitate to overstate the cost, or even the size of their land in order to earn undeserved compensation. This gets even more subtle where such projects have to be located on unregistered community land. In the absence of pre-recorded market values, it is possible for landowners, with the support of their political leaders, to push for compensation rates way beyond what would be mundane for the locality. In other cases, landowners will claim unrealistic compensation amounts with the intention of creating payment disputes which end up in court, where they may have influence to tilt outcomes. The net effect in these circumstances is exaggerated land acquisition costs, or delays, which ultimately escalate public project costs. This subsequently becomes a burden for citizens.

Land value index

In an attempt to tame such practices, the country recently enacted the Land Value (Amendment) Act of 2019, which will provide for the development of a land value index. Lest I lose you, the 2020-2024 strategic plan for the line Ministry of Lands indicates that a land value index is an analytical representation showing the spatial distribution of land values in a given geographical area at a specific time. It will be used to guide compensation for compulsory acquisition of land and investments, and includes the creation of a government land bank. Once fully developed, it is anticipated that the application of the index countrywide will make land rates, land rents, the stamp duty applicable during the transfer of property and compensation for acquired land predictable, and not prone to subjective valuations.

Has there been any progress in the development of this index? Seemingly, quite some good progress has been made. The strategic plan indicates that the index has been developed for the counties of Mombasa, Narok, Kericho, Bomet and Kisumu. Naivasha sub-county of Nakuru has had its index done too. Tentative value maps have been prepared for some other 16 counties. I am sure that a lot more may have been done since. This is one tool that the government should expedite. And stakeholders should be on the lookout for the respective validation forums. Consensus on the zonal values will be a boon to implementation.

Dated 25th June, 2021