NLC to lose billions of compensation cash in law change proposals by State
National Lands Commission boss Kabale Tache Arero.
The National Land Commission (NLC) will lose billions of shillings in compensation funds if MPs approve a new Bill that seeks to strip it of its powers to evaluate and value land for compensation.
The Land (Amendment) Bill, 2023 seeks to vest the mandate of compulsory land acquisition on the Lands Cabinet secretary.
Currently, the commission has powers under the Land Act, 2012 to conduct valuation and pay compensation for land compulsorily acquired by public bodies.
Acquiring bodies are by law required to deposit compensation money with NLC, which then pays for the land on behalf of the entities.
The Land Act 2012 requires acquiring entities, through NLC, to pay compensation to affected landowners within 24 months.
Last year, NLC disclosed to Parliament that it was holding about Sh6 billion in compensation cash for landowners whose properties are either subject to legal suits, land disputes or lack title documents.
Land acquisition
“The Bill vests upon the Cabinet secretary, the mandate of handling compulsory land acquisition, eliminate conflict of interest likely to occur when one entity is involved in valuation process and at the same time making compensation payments and eliminate delay in acquiring land since the acquiring public body has direct control in making compensation payments as opposed to when funds were being transferred to the commission, and establish the land acquisition committee to replace the land acquisition tribunal,” the Bill states in its memorandum of objects and reasons.
The State-backed Bill sponsored by National Assembly Leader of Majority Kimani Ichung’wah seeks to implement President William Ruto’s directive that the Ministry of Lands takes over the valuation and compensation for land from NLC.
Dr Ruto in May 2023 revealed plans to strip NLC of its powers to evaluate and value land for compensation, citing land scandals and corruption.
The Bill repeals section 107 of the Land Act, 2012 to strip NLC of power to compulsorily acquire land.
“Whenever the national or county government is satisfied that it may be necessary to acquire some particular land under section 110, the respective Cabinet Secretary or the County Executive Committee Member shall submit a request to the Cabinet Secretary (Lands) to acquire land compulsorily,” the Bill states.
“The Cabinet Secretary may reject the request of an acquiring public body to undertake an acquisition if the request does not meet the requirements prescribed under subsection 2 and Article 40 of the Constitution.”
NLC told the Public Accounts Committee that lack of title deeds, court cases and disputes have derailed the payout of Sh1.2 billion in compensation to landowners, delaying key road projects.
Delayed compensation
NLC Chief Executive Officer Kabale Tache said land disputes and court cases tied to wayleave compensation are some of the reasons projects are delayed, hitting taxpayers hard.
She added that disputes, lack of searches and other ownership documents, court cases, lack of IDs and account numbers as well as designing and redesigning of the projects also delayed compensation.
Road agencies continue to forcefully evict landowners using compulsory acquisition clauses available in law, but default on compensation past the 24-month deadline.
Official government data shows that the three major road agencies owe project-affected persons a total of Sh37 billion in compensation.
The National Assembly’s Lands Committee heard that the Kenya National Highways Authority is the biggest culprit, owing landowners at least Sh35 billion by the end of March 2023.
The Kenya Urban Roads Authority had defaulted on compensation worth Sh1.8 billion while the Kenya Rural Roads Authority was still holding onto Sh542.5 million.
