Uncertainty at Ardhi House not good for property market

NAIROBI: For almost two months, the issuance of land title deeds at Ardhi House has ground to a halt, throwing the real estate sector into panic mode.

The crisis was created after Chief Land Registrar (CLR) Sarah Mwenda was suspended following her inclusion in the Ethics and Anti-Corruption Commission list President Uhuru Kenyatta tabled in Parliament in March. After this newspaper published a front-page story on how over 7,400 titles had remained unprocessed at Ardhi House as of April 22, acting Cabinet Secretary for Lands Fred Matiang'i said there was no cause for worry.

The number of pending deeds has grown exponentially to over 10,000 leases. We detailed how frustrated staffers at Ardhi House spend their day reading newspapers, browsing or having tea because they had little work with no CLR to sign off on new leases.

The Hass Property Index reports Kenya's property sales volumes among the fastest rising in the region And therefore the circus of sorts at Ardhi House that has culminated in blame games could dampen the property boom. The last thing investors eyeing a booming real estate market like ours want to hear is never-ending uncertainty.

The acting CLR may not be able to work effectively because she was not appointed by the Public Service Commission and her name has not been gazetted by the acting CS. While the blame game continues, thousands of Kenyans are left in despair and angry that they cannot get copies of leases for apartments, houses and land they have purchased. These are acquisitions for which they have toiled and worked hard to purchase and now cannot receive proof of ownership from a Government entity.

The situation has reached critical levels, yet there has been no response from Ardhi House to resolve the stalemate; not even a comment from top lands officers to pacify growing public anxiety. The Kenya Bankers Association and the Kenya Property Developers Association have added their voice in a growing chorus that appears to fall on deaf ears.

We have heard stories of young Kenyans who purchased a dream home from a developer and issued a 30-day notice that they were moving out after their mortgage was approved by their bank. They have been unable to move into their new homes because the precious document cannot be obtained.

We have heard tales of Kenyans who have purchased plots that are still waiting for a lease months after they paid the purchase price. The multiplier effect of this stalemate has lawyers, bankers and developers scratching their heads and spending sleepless nights. You would want to think that for a sector that holds enormous potential and is valued by Kenyans, action would be taken to remedy the situation immediately. The Lands ministry must provide the service that Kenyans deserve, recognising that it is not a privilege, but a right.

It is not a privilege, but a right to demand a lease from the Government when you have met all the conditions for the document. The Government ought to get to the bottom of the crisis and show concern and willingness to resolve the stalemate and unlock billions of shillings tied up in the real estate sector.

Buyers of new houses, flats and land are holding their breath that their new life can start but are held back by bureaucracy. Two weeks after Lands Secretary Peter Kahuho assured Kenyans that an acting CLR would be gazetted to resolve the backlog, nothing has been done.