Monday, the Institute of Surveyors of Kenya (ISK) said the minister’s position was in stark contrast with the reality on the ground where the blockade persists.
But Prof Kaimenyi, who recently announced the reversal of a blanket ban on lease renewals that came into force in December last year, denied knowledge of any such concerns, insisting that the freeze had been lifted.
A three-month delay will hit property owners, who use them as collateral to secure development loans from banks, with more spiralling the effect on the wider economy.
Top Ministry of Land officials have maintained the freeze on renewal of leases for subdivided parcels, denying the government billions of shillings in transaction taxes and slowing down economic activity.
This is despite Land secretary Jacob Kaimenyi’s insistence that the moratorium on renewal of all leases had been lifted, allowing the transactions to proceed.
Monday, the Institute of Surveyors of Kenya (ISK) said the minister’s position was in stark contrast with the reality on the ground where the blockade persists.
ISK chairman Stephen Ambani told the Business Daily that the transactions have been kept on hold and that Land officials have been offering multiple explanations, including the lack of regulations to process the new leases.
Mr Ambani said efforts to get the ministry to resolve the standoff that is holding billions worth of deals have been futile.
“No leases from subdivision and new grants are being processed yet they form the bulk of transactions on private land. We have written to the ministry on this matter and I can tell you for a fact that clients are frustrated as some officials are saying they need a memo to allow them do these leases, which were not in the gazette notice,” Mr Ambani said.
But Prof Kaimenyi, who recently announced the reversal of a blanket ban on lease renewals that came into force in December last year, denied knowledge of any such concerns, insisting that the freeze had been lifted.
The Cabinet Secretary disputed the ISK statement that the lifting of the ban on renewals only affected extension of leases and renewal of existing ones.
“All categories of leases were unlocked. I am not aware of any such concerns. If indeed they exist, they will be addressed,” Prof Kaimenyi said.
He could not, however, confirm whether any new leases or renewals have been processed since the December ban.
The ban was intended to enable a clean-up of the registry, where cartels were using forged documents to take ownership of land whose leases were up for renewal without the knowledge of the owners.
Prof Kaimenyi raised the hopes of land dealers when he announced that the freeze had been lifted, while also issuing new guidelines for extension and renewal of leases.
“Following the gazettement of the said guidelines, on Friday 9th June, 2017, the 22nd December, 2016 Cabinet moratorium on processing of leases has been lifted,” the minister said while underlining the importance of the sector to the economy.
The surveyors, however, contend that in addition to creating various conflicts in the management of leases, the new guidelines left out a critical area where the bulk of business happens, sustaining the negative impact on property business.
ISK officials also said the new guidelines were inconsistent with the spirit of the 2010 Constitution on land reforms and the devolved system of government.
Mr Ambani contends that the lifting of the moratorium on renewal and extension of leases does not appear to have included moratorium on leases emanating from grants and subdivisions.
The surveyors said efforts to get temporary regulations to guide the two categories left out have been in vain with the possibility that such transactions may not happen until Parliament reconvenes in September to pass the required regulations.
A three-month delay will hit property owners, who use them as collateral to secure development loans from banks, with more spiralling the effect on the wider economy.
Subdivisions make close to half of leasehold land transactions and contribute up to 40 per cent of the Sh12 billion collected in land-related dealings every year.
Those selling the subdivided land will also find it hard to make transactions as the new lease standoff persists.
“Delayed lease processing is also fodder for criminals targeting these properties and that is why investors would naturally keep away as it is usually prone to court cases later,” Patrick Muchoki of Thika-based Lettas Developers said.
