Proposal Sparks Concern: Land Amendment Bill 2023
The ongoing debate over the Finance Bill, 2024, has raised significant public concerns, particularly regarding proposed amendments to the Land Act of 2012.
Key Amendment: Land Rent on Freehold Property
The Land Amendment Bill number 2 of 2023 seeks to introduce a new clause affecting freehold land owners. This clause mandates that owners of freehold land in urban areas pay an annual land levy equivalent to leasehold properties of similar size and location.
Potential Impact: Risk of Property Loss
Experts warn that if passed, the amendments could result in widespread loss of property ownership among Kenyans. Dr. Mwenda Makathimo, Executive Director of LDGI, asserts that imposing this levy effectively converts freehold into leasehold, jeopardizing ownership for many unable to afford the new charges.
Concerns Voiced: Legal and Social Ramifications
“This is essentially a tax on land ownership that is not government-owned,” Dr. Makathimo stated on Citizen TV, highlighting the potential economic burden on landowners, particularly indigenous communities with ancestral lands.
Legislative Sponsorship and Authority
The bill, championed by MP Simon King’ara of Ruiru, grants significant powers to the Lands Cabinet Secretary. It enables compulsory acquisition of land by national or county governments, a move criticized by Dr. Makathimo as regressive and potentially undermining property rights.
Legal Safeguards and Constitutional Concerns
Marjorie Kivuva, Partner at Tarra Agility Africa, emphasizes the need for any amendments to align with constitutional property rights. She stresses that existing property titles, such as freehold interests, should not be undermined by legislative changes.
Government Response: Contradictory Claims
Despite claims by National Assembly Majority Leader Kimani Ichung’wah denying the existence of such a bill, Citizen TV’s investigations reveal that the bill has indeed progressed through the National Assembly and now awaits Senate review.
Public Reaction: Uncertainty and Apprehension
The proposed amendments have sparked uncertainty and apprehension among landowners across Kenya. Many fear the potential loss of generational properties and the economic strain posed by new levies.
Implications for Landowners
As the Land Amendment Bill 2023 moves forward, its implications for landowners, especially those in urban areas, remain uncertain. The debate continues as stakeholders, legal experts, and lawmakers weigh the balance between fiscal policy and property rights in Kenya’s evolving legislative landscape.
