Tenure simply means the conditions under which land and buildings are owned. This is the root word for tenant and tenancy.
In Kenya, there are two major types of land tenure: freehold and leasehold.
Under freehold, the property is owned in “forever” terms. Technically, we say in the land is held in perpetuity. On the other hand, a leasehold is owned for a specified period. Currently, Kenyan law allows a maximum of 99 years. Upon expiry of lease period, the land reverts to the government, whether central or county.
Duties and Responsibilities
No matter the type of tenure, ultimately all land belongs to and is governed by the state. That is the basis of land tax. Principally, land as the major factor of production needs to be utilized for economic purposes. Thereby, residential agricultural and commercial use are the three key uses of land. Land tax exist to ensure that the required amenities are provided so as to maximize on these usages. Moreover, land tax is also meant to be a deterrent to hoarding land.
That said, freehold tenure attracts land rates that are payable to the county governments. However, land rent is payable by leaseholders to the national government. It is the responsibility of the owner to pay these annual levies. Whenever one falls back in remission, an interest is computed on accruing and compounding. You don’t want to end there, do you?
So, under what type of tenure is your land registered? You wanna know? Check out your deed of ownership.
The one written Certificate of Title or Title Deed is a freehold. If it is titled Certificate of Lease, yours is a leasehold. The term of lease is indicated on page 1 as well as when it started running. Therefore, you can check how much time is remaining.
You can always renew the lease if interested by following the procedure outlined in requisite laws and regulations. In the event that your leasehold expires without your knowledge, the government can easily repossess the land and do with it as it pleases. You don’t want to find yourself in such a spot! And you shouldn’t because professionals like us are there to consult with and offer the assistance.
As a matter of fact, seeking and engaging the services of an asset manager helps you know and keep your “flock” of land assets in good condition, “for riches do not endure forever, and a crown is not secure for all generations,” Proverbs 27:23-24.
Leant something? Share with family and friends. You never know.