The Constitution enacted in 2010 provided that foreigners can only hold land in Kenya on a tenure not exceeding 99 years.
The companies, which own thousands of acres across different parts of the country, say it is unclear if the new cap on the lease terms took effect from the date they were issued with land titles or from the enactment of the 2010 Constitution.
Foreign-owned agricultural companies including Williamson Tea, Kapchorua and Rea Vipingo which are listed on the NSE are facing uncertainty over the validity of their land title deeds, limiting their investment plans.
The firms previously held land both on freehold and 999-year leaseholds, but the Constitution enacted in 2010 provided that foreigners can only hold land in Kenya on a tenure not exceeding 99 years.
The companies, which own thousands of acres across different parts of the country, say it is unclear if the new cap on the lease terms took effect from the date they were issued with land titles or from the enactment of the 2010 Constitution.
“The group being partly owned by foreigners is gripped with uncertainty to its land which had freehold titles and 999-year lease periods before the enactment of the new Land Act,” Williamson Tea said in a statement.
The company added that the National Land Commission (NLC) is yet to provide guidance on when the new lease terms are supposed to start.
“We do hope that the national government will come up with a policy concerning land that will not deter the foreign investors from investing and expanding in the country.”
Kapchorua Tea Company, an associate firm of Williamson Tea, expressed similar concerns about uncertainty in the implementation of foreigners’ land ownership restrictions.
The Constitution says that land held by foreigners in Kenya on a freehold basis shall revert to the State—on the declaration of the Constitution— which shall then grant the non-citizens a 99-year lease.
Rea Vipingo holds a similar position but noted that the government has not implemented the law.
“The group’s land titles in Kenya, which were originally either freehold or leases in excess of 900 years, were converted to 99-year leases with effect from August 27, 2010. The group has yet to receive the new title deeds,” the firm said in its latest annual report.
While the Constitution provides that foreigners can be issued with the shorter leases, the wording of the Land Act signals that non-Kenyans will find it harder to get any leases compared to locals.
“Where any land reverts back to the national or county government after expiry of the leasehold tenure the commission (NLC) shall offer to the immediate past holder of the leasehold interest pre-emptive rights to allocation of the land provided that such lessee is a Kenya citizen and that the land is not required by the national or the county government for public purposes,” reads part of the Act.
This means that foreigners are not to be given priority in issuing of leases, even if it concerns land which they previously held on a freehold or the 999-year leases basis under the repealed Constitution.
The Land ministry and the NLC have been fighting over which institution has the authority to issues titles, further fuelling uncertainty among land owners.
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