Valuation Of Un Registered Community Land In Kenya – Addressing The Fundamentals

The subject of valuation of unregistered interests in land is increasingly attracting the attention of Valuers and Land Managers globally. The realization that value of property is not necessarily created by formal registration and that the legitimacy and increasingly the legality of property rights is not conferred by registration has made inquiry into the approaches for valuation of such property critical. Property rights are considered a key element of human rights and persons are not to be deprived of their property rights arbitrarily either by the state or other parties. In cases where private property is required for public purposes or in public interest then the owners/holders of the rights must be compensated in a just and prompt manner. It is therefore important that the value of unregistered property is assessed in ways that are credible, objective and just in the interest of supporting voluntary or involuntary transactions. In Kenya Community land ownership is recognized Constitutionally and has equal status with private and public land ownership. Non-registration of community land rights does not make them illegal or illegitimate. The Community Land Act of 2016 and Community Land Regulations 2018 were enacted by parliament to provide a framework for registration and management of Community Land. Despite the passing of these laws and regulations over sixty percent of land in Kenya is still unregistered and falls in the category of Community Land. Public and private investments continue to take place over unregistered community land. The questions as to how the subject of valuation is ascertained; where and how the information on transactions; proprietorship and other relevant aspects is gathered, analyzed and used to derive valuation amounts. The methods employed and their appropriateness and the challenges encountered is the subject of this paper.