New Bill: Land selling Firms in Kenya To Now Pay Ksh 500 Million as License Fees

On Thursday, February 8th, the Kenyan Parliament approved the publication of the Lands Act, 2012 (Amendment) Bill. This bill will regulate firms that buy and sell land. It proposes that Land selling companies deposit an indemnity bond of Ksh 500 million to prevent fraudulent land sales

Many people worry about being tricked when buying land because fake sales happen often. To tackle this issue, the Directorate of Criminal Investigations set up a Land Fraud Investigations Unit in 2021. Now, Kirinyaga Central MP Joseph Gitari proposes the new Land Amendment bill to help protect land buyers.

The main goal of the bill is to control the rules and licenses of land-buying companies and safeguard buyers’ interests. It suggests creating an office called the Registrar of Lands Dealing Companies. This office would manage the registration and licensing of land-selling companies and shut down those involved in fraud.

The bill also suggests that all shareholders and directors of these companies should be declared. Companies must provide a real office address to prevent fake companies from operating. If a company lies, it won’t get a license to sell land. The bill also wants these companies to deposit money with a new regulatory body, like banks do with the Central Bank of Kenya. This ensures buyers can get compensation if they buy land that the company doesn’t own legally.

Existing land-selling companies will lose their licenses if they break the rules set by the regulatory body. Legitimate real estate companies formed an Association of Real Estate Stakeholders to fight fraud in the market. Fraudulent companies often bribe officials to process fake title deeds, making it hard for buyers to tell the difference.

So far, 200 land-selling companies joined the Association, and 300 more are expected to join. The association plans to create rules and a committee to deal with bad companies. If this happens, being a member of this association will be important for buyers choosing a real estate company, like looking for a KEBS sticker or an ISO certification.

Fraud in the real estate market is now becoming rampant. However, platforms like Krent  ensure safe and secure real estate transactions for buyers

With Krent, you can browse through a wide range of properties with confidence, knowing that each listing undergoes thorough verification. We work tirelessly to weed out fraudulent sellers and provide you with a transparent and trustworthy marketplace.