You Could Lose Your Land To Gov’t If MPs Pass New Bill.

With the ongoing discussions surrounding The Finance Bill 2024, several contentious issues have emerged, notably a significant proposed amendment to the Land Act of 2012.

The proposed Land Amendment Bill No.2 2023 aims to introduce a new clause mandating freehold landowners to pay land rent, a step that has raised widespread suspicion and unease among Kenyans.

The proposed levy has been criticized by the National Land Commission (NLC) terming it as double taxation.

This would apply to homeowners residing on ancestral land in suburban areas.

"There should be no levy charged on freehold land apart from rates," NLC chief executive Kabale Tache told MPs in February. "Freehold interests are superior interests, and there is no landlord, hence no rent can be owed."

Despite being part of the Land Laws (Amendment) (No.2) Bill 2023, the levy has been mistakenly tied to the Finance Bill due to simultaneous protests against taxes.

The proposed amendment to the Land Act 2012 would introduce a new section 54A, requiring freehold landowners in urban areas to pay an annual levy equivalent to land rent on comparable leasehold land. Agricultural landowners, on the other hand, may be exempted.

Mwenda Makathimo, executive director of the Land Development and Governance Institute (LDGI), explains that this means Kenyans will be taxed for owning land in urban areas.

"This means the government is charging you a tax for owning freehold land which is not government land. That is what this Act will bring. The land you might have inherited from your parents or land that you might have bought is freehold land," he told Citizen TV.

Marjorie Kivuva, a partner at Tarra Agility Africa, stressed the importance of safeguarding property rights.

"Any amendment should not be contrary to the current title or interest that the person holds. If the Constitution says you have a right to property, then that should be protected. If the land law says you have a freehold interest and that interest carries an ultimate or superior title, where you are not paying an annual land rate, then that should be considered."

In December, MPs voted to reduce the publication period of the bill from 14 days to one day, expediting its introduction to the House. This decision was made in conjunction with a similar motion to shorten the publication period of the Affordable Housing Bill, another piece of legislation that has garnered significant attention.

Despite government claims through National Assembly Majority Leader Kimani Ichung'wah that no bill exists, sources confirm it has progressed to the second reading.