Land-buying companies will be required to pay Sh500 million to acquire an operating license should MPs approve a Bill aimed at curbing fraud in the lands sector.
The draft Bill set to be introduced in Parliament this week, seeks to protect investors from property scammers amid hue and cry from Benyans who have been swindled of their property by unscrupulous land buying-and-selling companies.
The Bill sponsored by Kirinyaga Central MP Joseph Gitari is further calling for the creation of the office of the registrar of land dealing companies, which will regulate the disposition and transmission of land by the companies.
According to the Land (amendment) Bill 2023, the registrar will be appointed by the public service commission and will be responsible for registration and regulation of land dealing companies as well as any other functions assigned by the Lands Cabinet Secretary.
"An application for registration under this Act shall be accompanied by such fees as may be subscribed by the Cabinet Secretary and a licensing fee of not less than five hundred million shillings," reads the Bill.
"A company shall not operate as a land dealing company unless it is registered under this Act."
The registrar will also have powers to reject an application or cancel a registration if they are satisfied that the company has given false information to secure registration, the registration was procured through non-disclosure of material facts and if the company has breached the provisions of the Act or any law.
The registrar shall, before cancelling the certificate of any company, notify the company of intended cancellation, give reasons and give the company an opportunity to be heard.
"The principal objective of this Bill is to amend the Land Act, 2012 to provide for registration, licensing and regulation of land dealing companies in order to protect interests of persons buying land from such companies," further reads the Bill.
Any aggrieved party by the decision of the registrar shall be required to the High Court within 14 days from the date of the decision.
The Bill also contains a clause that allows the regulator to impose a Sh5 million fine to land dealing companies for non-compliance.
"A person who commits an offence under this section is liable, on conviction, to a fine of not less than five million shillings or to an imprisonment for a term not less than six months, or to both," reads the Bill.
The Bill comes amid increased cases of Kenyans being duped and scammed of their property by fraudulent land investment companies.
A section of Kenyans who had invested with Lesedi Developers Ltd based in Thika had their dreams of becoming home owners dashed after a landowner demolished the houses following an alleged disagreement.
The investors later accused Lesedi of taking their money but failing to pay the land owner who resorted to bringing down the houses.
Gakuya real estate firm has also in recent years been on the receiving end from investors after it went under with their hard earned cash.
In May, Parliament launched an investigation into Cytonn Investment after a petition was filed by investors who claimed that the firm had embezzled their cash.
Appearing before the National Assembly's public petition committee however, the company's management refuted the allegations and even volunteered to open books for audit.
Majority of Kenyans have however continued to lose money to land buying companies with the court cases dragging and justice being elusive or delivered too late in the day.
