NOTES ON PROPERTY LAW IN KENYA



INTRODUCTION

Proprietary rights are defined as a right that is part of a person’s estate, assets, or property, as opposed to a right arising from the person’s legal status. Thus, proprietorship can easily be termed as being a fundamental cornerstone of the entire concept of property. Alongside it, there are several other vital enigmas, among them being ownership, tenure, registration etc.
Without prejudice to the significance of all other salient concepts of property, it can be arguably stated that proprietorship in land, though being the most basic form of ownership of property, is, by far, the most important. Hopefully, through the following discourse, it may be laid bare just how this comes into play. This shall be done by analyzing proprietorship in land vis-à-vis other forms of ownership of land, as well as seeking to expound on the significance as well as justification for State regulation in the ownership of land.
The other relevant concepts of ownership that have been elaborated upon include:
1.      Joint tenancy
2.      Tenancy in common
3.      Leases
4.      Sectional properties.
Further, the involvement of the State in various ways in each of the above, as well as other aspects relevant aspects of land ownership, has been touched on.

1.      JOINT TENANCY
Joint tenancy is defined as:
“Undivided ownership shared by two or more persons. Typically, an owner's interest, at death, passes to the surviving owner or owners by virtue of the right of survivorship.”[1]
It is a relatively common form of land ownership which bears a few similarities with sole proprietorship.
Similarly to tenancy in common, joint tenants do not have an unlimited share in the land they own. They share the title to that land on a strict equal share basis. However, upon death, this share passes on to the surviving owner of the land. This is in contrast to the unlimited and indefeasible title held by a sole proprietor of land.
In addition, land owned jointly cannot be bequeathed by the owners to any beneficiary through the operation of a will while the other owner is still alive. This differs greatly with the free will of sole proprietor to gift his property to any beneficiary he deems worthy.

2.      TENANCY IN COMMON
This is a form of ownership whereby the share in the property owned by two or more people is subdivided, with each individual owning a share in that property. This share they are entitled to shall, upon their death, pass on to whomever they bequeath that title through a will, or where there is no last testament, it shall pass on to his dependants by the rules of intestacy as illustrated in the Indian case of Shirdar Ghose v Harimohan Sahu.[2]
In both of these forms of ownership of land, the owners retain their proprietary rights to enjoy or dispose of their property as they may wish. This is subject to any over-riding interests that may lie on the land as well as the Government’s control over such activity (eminent domain).
It, however, contrasts with sole proprietorship in that the owners of this property in common do not have absolute dominion over that parcel of land, only owning it in the shares that they have allocated themselves. Of note is that these shares do not have to be equal and can be of any portion that the owners determine among themselves.

3.      LEASES
The Land Act of Kenya defines a lease as “the grant, with or without consideration, by the proprietor of land of the right to the exclusive possession of his or her land.”[3] It is a widely common aspect of land ownership and bears significant similarities with other forms of proprietorship.
First off, both leases and usual proprietorship of land are subject to any over-riding interests that may encumber such property. This arises under the provisions of Section 28 of the Land Registration Act.
Again, both forms of ownership are recognized under both civil and common law jurisdictions. This shows just how widespread both concepts are.
Conversely, the contrasts between these two concepts are unavoidable. Chief among them regards registration of either form. Under Kenyan law, all proprietorships without exception are to be registered as per the requirements of the Land Registration Act. Leases, however, do not subscribe to this very same provision. As per Part IV of the Land Registration Act, only long-term leases (specifically those of seven years and more) are subject to registration.
In addition, leases and proprietorship differ in their permanency. Whereas leases are for a stipulated period as agreed between the lessee and the lessor, proprietorship, on the other hand, subsists until such a point as the proprietor may wish to dispose of such interest in land through transfer.
Lastly the restrictions applying to both forms of land ownership differ. Proprietors are only subject to the will of the Government (in exercise of its eminent domain over land) as well as any encumbrances that may lie upon that land (like over-riding interests). As for the lessee, he/she has to deal with any restrictions or burdens placed upon them by the lessor as well as those that an ordinary proprietor would have to deal with.

4.      SECTIONAL PROPERTIES
This concept of property ownership is governed by the Sectional Properties Act.[4]
This form of land ownership does share a number of essential similarities with that of ordinary proprietorship. One of these similarities is whereby a charge lies upon the sectional property. Just as it happens in normal proprietorship, the interest of the charger shall continue to lie upon that property even when the property has been transferred as is provided for in the Land Act.[5]
Similarly, the over-riding interests that easements bear upon property under normal proprietorship as provided for by Section 28 of the Land Registration Act[6] also bear upon sectional properties. This is statutorily provided for under Section 14 of the Sectional Properties Act.[7]
However, there are also some stark contrasts between the two forms of land ownership.
First among them arises under Section 4 of the Sectional Properties Act providing that sectional property registration shall only be possible where two or more units are involved. This is in stark contrast with that of ordinary registration of other properties, which requires only one unit.
Also regarding the registration of such sectional properties, upon registration of the parcel or portion of land containing the sectional properties, the Registrar closes that register, opening a separate one for each of the sections/units entailed in that portion. This differs from the usual manner of registering the portion of land in a singular register without the need to open up any additional ones.
Another glaring difference arises in the management and legal recognition of the proprietors of these sectional properties. Section 17 of the Sectional Properties Act provides for the establishment of a Corporation, complete with by-laws and statutory powers, which shall be composed of the various owners of the units in that sectional plan. This Corporation shall be capable of suing and being sued[8] just as a limited company does (though the provisions of the Companies Act[9] will not apply to it). This is contrary to the individual recognition by the law, of a sole proprietor of any other form of property, rather than this ‘corporate’ concept.
Lastly, the indefeasibility of a title as envisioned by Section 26 of the Land Registration Act does not seem to apply to sectional properties. This is because the same is not provided for by the Sectional Properties Act as is apparent in Maathai & 2 others v City Council of Nairobi & 2 others.[10]



JUSTIFICATIONS FOR STATE REGULATION IN LAND OWNERSHIP.
a)      Registration of titles
Titles are the manifestation of one’s ownership of land, and a deed of the same is conclusive legal proof of it. The Land Registration Act expresses that registration of a title in land vest in the proprietor the absolute ownership of that land. In order to safeguard the sanctity and official legal nature of this process, the power and intervention of the Government is highly required.
 The Government has the manpower, reach and resources to cater conclusively for this process. This is done primarily through the drafting of the very legislation that controls the process.
Secondly, the Registrar of Lands is a Government-run department, maintaining a register of lands[11] provides a permanent, public record of all land titles in Kenya in the event of disputes or queries which becomes essential during land transactions as well as land disputes like Gladys Wanjiru Ngacha v Teresa Chepsaat & 4 others.[12]
b)      Sourcing of State revenue
One of the primary reasons for the State’s involvement in land ownership and the processes involved therein is so as to collect sufficient revenue to sustain the Government’s coffers. Various land transactions have taxes levied on them, the most common of these being stamp duty. Therefore, a significant amount of any land transaction goes on to further finance the Government and assure Kenyans of continued service provision.
Within areas controlled by local authorities, there exist land rates that regularly have to be paid to the authority for the right to use that parcel of land or property. This is a major source of revenue to these local authorities (and now to the various counties) as it is used to sustain their funds and facilitate public service provision.
c)      Police Power
Article 66(1) of the Constitution states that:
      “The State may regulate the use of any land or any interest over any land, in the interest of defence, public safety, public order, public morality, public health, or land use planning.”
Hence, police power is the inherent power of the State to regulate land or land use without necessarily appropriating it. This is done so as to ensure that national resources are properly used.
This power is an import from American legislation, previously exercised only as a matter of fact but now firmly cemented in the Constitution. It exists to protect the State’s interest as well as public interest in various essential matters.
Though it may prima facie seem arbitrary in nature, it must be noted that the power is limited to the parameters listed in the Constitution, which double as its justification. An example of this whereby the State limits the height/maximum number of floors that buildings in the vicinity of an airport, more-so a military one, can have. Further, Parliament is duty-bound to formulate and enact legislation to govern and control this process.[13]
In Eubank v Richmond,[14] Chief Justice Marshall expounded on police power by stating,
 “It  extends  not only to regulations which promote the public health,  morals,  and safety, but  to  those  which promote  the public convenience  or  the general  prosperity”
This justification of the State’s involvement is an embodiment of the doctrine of eminent domain, determining just how far one can go in exercising their individual property rights, while being limited by the interest of the public in that land.

d)      Prevention of detrimental land practices.
The two main detrimental land practices that the State aims to eradicate through its involvement are land fragmentation as well as perpetual ownership.
Perpetual ownership of land would occur upon the expiration of a lease and the immediate former lease happens to renew that lease without the involvement of other interested parties. This was a common occurrence under the now obsolete land law regime especially with colonial settlers, but is now expressly countered by the Constitution which provides that non-citizens shall not be granted leases that exceed ninety-nine (99) years.[15]
Further, the Land Act[16] provides that upon expiry of a lease, the radical title to the land shall revert to the National Land Commission but the immediate former lessee (if a Kenyan citizen) shall hold pre-emptive rights to reallocation of that land.[17] This aims to ensure that no-one is guaranteed of an endless claim to land (unless it is under freehold tenure), but that land is allocated to the avenue that makes the productivity out of it.
Secondly, the State intervenes to prevent fragmentation of the land. It is a well-established fact that the splitting of land portions into several smaller and sometimes scattered units denies the holder of title to that land from benefitting from the exploitation of the potential economies of scale that would accrue were these units consolidated into larger collective units.
Were it not for State intervention, through legislation such as the National Land Commission Act, such reckless apportioning of land parcels would be rampant, hugely hampering the productivity of such land. The State comes in, through the embodiment of the National Land Commission, governing this allocation process so that it is not carried out in a haphazard manner likely to harm the general national interest in development.

e)      Protection of public interest.
Public interest is defined as “something in which the public as a whole has a stake; esp., an interest that justifies governmental regulation”[18]. From this very definition, the absolute need for Government intervention is evident. As a concept, public interest exists so as to protect affairs that will have a general bearing on the welfare of the country’s populace.
This form of protection becomes evident in the Government’s exercise of its eminent domain over land through compulsory acquisition of parcels of land. This is statutorily provided for in the Land Act, No. 6 of 2012[19] and is defined as as the power of the state to deprive or acquire any title or other interest in land for public purpose and it is subject to prompt payment of compensation.[20] It is chiefly used to protect or ensure the efficient exploitation and utilization of public resources. This may occur through the construction of roads, building of public facilities, and mining among others. Hence, the Government’s direct involvement in this is needed to ensure there is no discrimination, proper distribution of the national ‘cake’, as well as the adequate compensation of all individual who lose their title to land.
However, it must be noted that this must be done without even a semblance of discrimination as was ruled in Ocean View Plaza Ltd v Attorney General[21] where it was demanded by the Court that any such process should be carried out “uniformly”.
The protection of the public’s interest is also evident in the implementation and exercise of police power as has already been discussed. The parameters stated by the Constitution[22] are all quintessential to the interest of the general public. Thus, the exercise of this power is seeks to ensure that the individual enjoyment of one’s title does not subsist to the detriment of the more important interests of the public.

Conclusion
Eventually, it is evident from the above entries that the Government’s intervention in all land ownership matters is a vital and indispensible tool necessary to maintain a semblance of law and order in such a potentially chaotic aspect of a nation’s existence. Without such involvement, Kenya’s land sector would be drawn into an even far-deeper abyss of land mismanagement than we are presently.
As for the various forms of land ownership, their diversity and intertwined nature is evidence of the complex affair that land ownership can be and is. Without these highly-developed concepts of law to govern such ownership, the modern understanding of land ownership, as we know it, would be, sadly, non-existent.











REFERENCES
1.     Black’s Law Dictionary, 9th Edition
2.     Land Act, No. 6 of 2012
3.     National Land Commission Act
4.     Land Registration Act, No. 3 of 2012
5.     Sectional Properties Act, No. 21 of 1987
6.     The Constitution of Kenya, 2010




[1] Black’s Law Dictionary. Ed. 9.
[2] AIR [1964] Ori 141.5
[3] Section 2
[4] No. 21 of 1987
[5] Section 98(4), ibid.
[6] No. 3 of 2012
[7] Ibid.
[8] Section 18, ibid.
[9] Section 17 (5), ibid.
[10] [1994] 1 KLR (E&L)
[11]Section 7 of Land Registration Act
[12] [2008] eKLR
[13]Article 66(2) of the Constitution of Kenya, 2010.
[14]226 U.S.  137
[15]Article 65(1), ibid.
[16] No. 6 of 2012
[17]Section 13(1), ibid
[18] Black’s Law Dictionary. Ed. 9
[19] Section 107
[20] Section 2, ibid.
[21] [2002] eKLR
[22] Article 66

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