The
Kenyan government will soon be introducing a value index in a move that aims at
making a land market in the country transparent, as well as cut wasteful project
spending as a result of speculative activities by landowners and brokers that
usually drives up costs of land.
Plans
to introduce the land value index have been revealed by the World Bank.
Business
Daily reports that the index will also boost local revenue collection by
counties from the land property.
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Currently,
there is no standardized land value information - a loophole that cartels have
been exploiting entrench fraud and exploitation in property prices.
The
government is now expected to table before Parliament a proposed legislation
related to land valuation and compensation that will give a green light to
implementation of the land value index once approved.
Treasury
Cabinet Secretary Ukur Yatani says the regulations will include updated rules
on land valuation Acts to ensure alignment with the Land Value Amendment Act
2019 and revisions to the Rating Act and Rating for Valuation Act to align them
with devolution.
The roll-out of the land value index is part
of conditions of a Sh80.9billion loan from the World Bank to help Kenya recover
from Covid-19 economic hardships and support the budget.
“The
development of a valuation index which is reviewed regularly will inform the
valid market price when the government acquires land for its development
projects. It will also mitigate the risk that local communities are exploited,
as it allows communities to know the value of their properties, a strongly
pro-poor measure” the World Bank said.
The Land Valuation Amendment Act 2019 provides
for the development of a land value index for all 47 counties.
However, the lack of updated, relevant
regulations despite the passing of the Act is impeding the roll-out of the land
value index across counties.
To date, land value indices have been
completed in only six of 47 counties, none of which have yet received MPs’
approval. Further, the Rating Act and Rating Valuation Act, which provides the
legal basis for counties to determine ratings for land valuation, is outdated.
“Together, these gaps contribute to
significant forgone own-source revenues that local governments could generate
from property taxation” the World Bank.
Baoriat Agencies is committed to helping you find the best place for you to settle in Eldoret town. We walk you through the entire process of acquiring your own property in Eldoret until it has been transferred into your hands.
To learn more about buying a property in Eldoret,
Call 0721-554937
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Email evekibet@gmail.com or
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