Title issuance confusion bad for investors

The grandstanding between the National Land Commission (NLC) and the Lands ministry over issuance of title deeds and extension of leases could leave some investors counting losses running into billions of shillings.

Recently, NLC Chairman Muhammad Swazuri said that title deeds issued without the commission’s blessing were deemed illegal.

Things were complicated further by the Supreme Court decision requiring Dr Swazuri and Lands Cabinet Secretary Charity Ngilu to resolve their disputes out of court within 90 days. The two recently kissed and made up in the presence of the President, but only time will tell if the truce will hold.

Meanwhile, the circus in the land sector continued. Ngilu told a Parliamentary Committee that the Government does not know the legally registered owner of the hotly disputed land in Karen that is worth a whopping Sh8 billion.

Currently, there are delays in adjudication of land, which is negatively affecting the economy. There is also the slow pace of service delivery at land registries countrywide.

But according to Swazuri, title deeds issued as from March last year without NLC’s involvement are null and void.

This is causing ripples in the sector, especially in view of Ngilu’s pledge to issue one million title deeds before the end of the year.

If she succeeds, Ngilu will have issued the highest number of title deeds in a year, especially when compared to the 5.6 million in the 50 years since independence.

Ngilu also said that the Government remains committed to issuing a record three million title deeds in the next three years.

 Dream

As much as owning a title deed is a lifetime dream of many, the tug-of-war between Ngilu and the NLC over powers to issue title deeds is affecting real estate investors.

According to the commission, title deeds issued after March last year without its signature and seal are not legal documents and should not be used for any transactions.

Unfortunately, some land and home buyers used the ‘blacklisted’ title deeds as security for loans or sold them to third parties.

It is thus important for investors to ‘reconfirm’ the validity of title deeds before entering into property transactions.

As the grandstanding over issuance of title deeds and extension of leases continued between Ngilu and the NLC, the constitution and land laws are clear on the disputed roles.

For instance, NLC is mandated to perform 62 roles, including issuance of title deeds, valuation and collecting revenue.

Section 6 of the Land Act specifies that the Lands cabinet secretary should develop policies on land and facilitate implementation of land reforms.

Other roles include co-ordination of the management of the national spatial data infrastructure, formulation of standards of service in the land sector and monitoring land sector performance.

The law provides that the cabinet secretary should also regulate service providers and professionals including physical planners, surveyors, valuers and estate agents. Separately, Article 67 of the Constitution establishes the NLC to manage public land on behalf of national and county governments.

Other roles of the commission include carrying out research and making recommendations to various government agencies involved with land use and management.

The NLC should also commence investigations on present or historical land injustices, recommend redress and encourage traditional land dispute resolution mechanisms.

The Constitution also empowers the commission to assess tax on land and premiums on immovable property in any area designated by law.

—The writer is an advocate of the High Court ([email protected])