Republic of Kenya Finance Bill 2024 and the Right to Own Land

The initial "hut taxes" (East Africa Hut Tax Ordinance 1903) and the subsequent Poll Tax (Native Hut and Poll Tax Ordinance 1910) were partially designed to compel Africans, who might not have otherwise sought wage employment, to find jobs in plantation agriculture or urban areas to pay their taxes.

Freehold Land Tenure in Kenya

The key characteristics of freehold land include:

• Permanency: Ownership lasts until the owner decides to sell the land.
• No Annual Rent: The owner does not pay rent to the government or any other entity.
• Inheritance: The land can be passed on to heirs, subject to compliance with the Law of Succession.

Leasehold Land

Leasehold ownership means that the lessee is granted the right to use land owned by another party (lessor) for a specified period, as determined by a lease agreement. Upon expiration of the lease term, ownership reverts to the freeholder unless the lease is renewed.

Implications of Converting Land to Leasehold

• Foreigners can acquire land more easily as it is leasehold.
• The government becomes the ultimate landlord of all land.
• Taxes, such as land rates, are payable on all land in Kenya, regardless of tenure.
• Reduces the likelihood of families passing land to their children.
• Forces families to sell land and be subject to Capital Gains Tax on any profit made.
• Ensures Kenyans are disinherited from their land.
• Promotes the absentee landlord agenda where the government may forcibly acquire idle land.

The MPs who passed the Finance Bill should ask Ruto if he is willing to convert his expansive farms into leasehold tenure as proposed. Are MPs willing to give up their ancestral homes to the government and pay land rates and ground rent to the government? Where do they expect to bury their ancestors if the land is converted to leasehold, given that burial rights are only exercised on freehold land outside municipality areas?