Land Laws Amendment Bill 2023 (What you need to know about the Proposed Increase in Land Rates)

The Land Laws (Amendment) Bill 2023 proposes increasing all land rates.
The Bill proposes to amend multiple land-related acts.
The land rate increases will increase the cost of certain land-related rates by up to 200%.

The Ministry of Lands, Housing, Public Works, and Urban Development recently proposed changes to land rates to increase charges for land transactions. The Land Laws Amendment Bill 2023 proposes the increase of land rates and other costs related to land-related services.

Alice Wahome, the Lands Cabinet Secretary, proposed changes to several acts of parliament. The land rates increment proposal will affect the Registration of Documents Act, the Land Control Act, the Land Registration Act of 2012, The Land Act of 2012, The Community Land Act of 2016, and the Sectional Properties Act of 2020.

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What Are the Key Provisions of The Land Laws Amendment Bill 2023 Regarding Land Rates?

If implemented, the cost of performing tasks at the land’s office will double. Official land search fees will increase from Ksh 500 to Ksh 2,000. While topological survey costs will increase from Ksh 15,000 to Ksh 30,000.

Other increased costs include increasing physical planning fees to Ksh 5,000 per hour and other professional advice-based services related to physical planning.

Other proposed changes in land taxation include;

A Ksh 20,000 practicing fee for surveyors.
Registration of land documents will cost Ksh 1,500 shillings, while corporation certificates will cost an additional Ksh 1,500.
Incorporation of a trust will increase to Ksh. 50,000 from Ksh 5,000.
Boundary dispute assertion will now cost Ksh 5,000.
Certified document copies from the land registrar will now cost Ksh 3,000 for the first ten pages and 100 shillings for each additional page.
Document resubmission for registration will cost Ksh 1,500, and name correction will cost Ksh 2,500.
Notice of Power of Attorney revocation will cost Ksh 5,000.
Kenyans will also be expected to pay Ksh 5,000 plus transport to have an officer from the land registry perform a site visit.

What Factors Prompted the Proposed Increase in Land Rates Per the Laws Amendment Bill 2023?

According to the Lands Ministry, some fees have remained unchanged for thirty years. The proposed increase is based on generating more income to cater to the cost of providing services at the land ministry and other government organizations.

What Are the Implications of The Proposed Increase in Land Rates Outlined in The Laws Amendment Bill 2023?

The land rates amendments have paved the way for other increases in land rates by different counties. Nairobi county government announced the increase of land rates that would take effect in January 2023.

However, the move was opposed by landowners who moved to court to challenge the increase. If adopted, the Land Laws amendment bill will set a precedence, allowing county governments to increase the current land rate charges.

Will The Proposed Increase in Land Rates Affect Residential, Commercial, Or Agricultural Properties Differently as Per the Laws Amendment Bill 2023?

The proposed land tax adjustments will apply to all residential, commercial, and agricultural plots. The current Nairobi County land rates differ based on various factors, such as land size, whether it is developed, and the value of the land.

How Will the Land Laws Amendment Bill 2023 Affect Property Owners and Landlords in Terms of Land Taxation?

If the rates on developed pieces of land increase by a significant amount, there is a likelihood that landlords will increase their rent to cater to the rising cost of property ownership.

Additionally, more property owners may be thrown into financial disarray as the land rates are sometimes set to double or even triple. This may lead to more property owners needing to offload their properties due to the increased land rates.

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