Land Commission rejects push for levy on freehold land
National Lands Commission CEO Kabale Arero.
What you need to know:
- The commission told the National Assembly’s committee on Lands that the introduction of a land levy would amount to double taxation.
- The NLC Chief Executive Kabale Tache told the committee that freehold interest is not comparable to a leasehold interest.
The National Land Commission (NLC) has rejected a section of a Bill that seeks to require owners of freehold land within or close to an urban area to pay annual land levy in addition to land rates.
The commission told the National Assembly’s committee on Lands that the introduction of a land levy would amount to double taxation.
The NLC Chief Executive Kabale Tache told the committee that freehold interest is not comparable to a leasehold interest.
“There should be no levy charged on freehold land apart from rates,” Ms Tache said while calling on MPs to delete the proposed amendment.
“Freehold interests are superior interest and there is no landlord and therefore no rent can be owed.”
The commission wants the House to delete the proposed amendments to the Land Act, 2012 which seeks to introduce the land levy on leasehold land.
The NLC appeared before the committee chaired by Joash Nyamoko to give views on the Land Laws (Amendment) Bill 2023 which is undergoing public participation.
The Land Laws (Amendment) Bill 2023 sponsored by Majority leader Kimani Ichung’wah seeks to amend the Act to insert a new section 54(A) that requires owners of land within a city or any urban area to pay the land levy.
“The owner of any freehold land or property situated within the boundaries of any urban areas of the city shall pay an annual land levy equivalent to the land rent payable for a leasehold land or property of the same size in the same zone,” the Bill states.
“Provided that any owner of freehold land that is put into agricultural use may be exempted from the annual land levy.”
The commission said the proposal to impose land levy on freehold property will infringe on the provisions of the Urban Cities Areas and Cities Act.
“The proposal touches on the provisions under the Urban Areas and Cities Act. The proposal requires the Senate approval,” the commission said in submissions to the committee.
Currently, freehold land or property is owned for an indefinite period with no annual charges or fees. Most ancestral lands in the country are freehold.
Mr Ichung’wah Bill further seeks to amend a number of land laws to “enhance efficiency in matters relating to grants and dispositions and compulsory acquisition of lands.”
The Bill will also seek to amend the National Land Commission Act of 2012 to remove the time limits to review all grants and disposition of public land and to allow continuous receipt of historical land injustices claims to be heard after 2026 by upholding the provision of beyond 10 years.
Further, the Bill further proposes to hand the Lands Cabinet Secretary powers to sanction land acquisition for state projects, a role that was initially reserved for the National Land Commission.
The Bill proposes to amend the Land Registration Act of 2012 to block registration of any land for which land rent has not been paid.
The NLC rejected a proposal that seeks to allow the national or county government to acquire some particular land under section 110 of the Act.
The said section requires the respective Cabinet Secretary or the County Executive Member to submit a request for acquisition of land to the Cabinet Secretary to acquire the land compulsorily.
“This amendment affects the constitutional provision in Article 174 and 175 on objects of devolution which promotes the autonomy of the national and county governments,” the commission said.
“Article 60, 62 (2&3) and 67(2)(a) of the Constitution mandates the commission to manage and administer public land on behalf of the national and county governments.”
The NLC said under compulsory land acquisition, the conversion of private or community land into public land is undertaken by the commission and commences with the publication of intention to acquire, and at which process of administration begins.
Upon vetting, the NLC said the converted land is managed by the commission on behalf of the two levels of government.
The commission said the Supreme Court advisory opinion of 2014 confirmed that the provisions of the Land Act, 2012 were consistent with the Constitution on the NLC mandate to protect and oversee public interests and rights.
