Investor Confidence at Risk as LSK Warns of Rampant Land Registry Irregularities
The Law Society of Kenya (LSK) has sounded the alarm on widespread corruption, inefficiencies, and bureaucratic delays plaguing the real estate and land administration sectors. These systemic issues, according to LSK President Faith Odhiambo, are eroding investor confidence and threatening property ownership rights across the country.
Speaking at the Association of Real Estate Stakeholders (RESA) Annual Dinner in Nairobi, Odhiambo highlighted a surge in complaints about irregular approvals, compromised land registries, and poor coordination between government agencies and county authorities. She emphasized the urgent need for stronger collaboration among stakeholders to tackle these challenges and restore trust in the sector. Odhiambo also called for closer engagement between the LSK and the Ministry of Lands to address the growing issue of illegitimate title deeds, which have left many landowners uncertain about the legality of their properties.
The LSK president pointed out that the inefficiencies and corruption within the Ministry of Lands and county governments are creating significant obstacles for property buyers and investors. These problems extend beyond land registries to include delays in development approvals, which have far-reaching consequences for those seeking loan facilities. She stressed that banks must prioritize proper securitization to protect investors from potential losses.
Odhiambo advocated for a multi-sector approach to resolve these issues, urging lawyers, bankers, surveyors, real estate agents, and planners to work together to identify and close loopholes that undermine transparency in the property market. She also underscored the importance of challenging flawed processes in court to ensure fairness and accountability for all parties involved.
In recent years, courts have taken a stricter stance on property ownership disputes, Odhiambo noted. She urged property buyers to conduct thorough due diligence before purchasing land, emphasizing that surface-level checks are insufficient. Investors must verify the ownership history of properties and ensure all approvals are legitimate to avoid losing land, particularly in cases where properties were originally public land.
At the same event, RESA Vice Chairperson Abigail Zuena Gikonyo focused on empowering women in the real estate sector. She urged women to be proactive in establishing their ownership rights, noting that despite constitutional guarantees, property ownership among women remains disproportionately low. Gikonyo highlighted the importance of proving financial contributions toward property purchases, as this is critical in cases of divorce or death to secure legal protection. She encouraged women to pursue joint ownership and maintain meticulous documentation when acquiring assets.
RESA Chairperson Chrispus Wachira reassured investors that the association is taking steps to enforce higher professional standards to protect the public from fraudulent transactions. He emphasized RESA's commitment to fostering a culture of professionalism and adherence to both internal organizational policies and national laws. To achieve this, RESA members are undergoing training to uphold ethical standards and comply with regulatory frameworks.
The RESA Annual Dinner brought together key stakeholders from the legal, banking, and property development sectors to discuss critical reforms needed in Kenya's multi-billion-shilling real estate industry. The event underscored the pressing need to address disputes, fraudulent dealings, and unverified investments that continue to undermine the sector's growth and reliability.