1.0Introduction/Background
Transactions and dealings with agricultural
land are primarily governed under the Land Control Act, Cap 302 and its
subsidiary legislation. This is an Act of Parliament to provide for controlling
transactions in Agricultural Land, it therefore imposes a mandatory condition
of obtaining consent from the Land Control Board for a transaction in
agricultural land to be valid.
Understanding and securing these consents and
clearance certificates are crucial steps in ensuring the legality and smooth
execution of land transactions in Kenya.
Generally, Land transactions in
Kenya are intricate processes governed by legal regulations, and securing
specific consent and clearance certificates is imperative for the successful
registration of related documents.
This article reviews the various
consents required and clearance certificates necessary for different types of
land transactions in Kenya.
a.
Consent of the Land
Control Board
2.0 Consent of the Land Control Board
Regulated by the Land Control Act
(Cap 302), this consent is essential for transactions involving agricultural
land. Section 2 of the Act defines agricultural land as any land that is not
within a municipality, township, market, or an area that was a township or
trading center under the now-repealed Township or Trading Centers Ordinance.
More so, any land that is in the
Nairobi area or any municipality, township, or urban centre declared as
agricultural land by the Cabinet Secretary falls under this definition.
However, the definition of
agricultural land provided in Section 2 comes with a proviso that excludes any
land restricted by its title’s conditions or covenants or any limitation
imposed by law from being used for agriculture or required to be used for non-agricultural
purposes.
Land Control Boards, established
at different levels, play a crucial role in controlling transactions. The Act
specifies transactions requiring consent, such as the sale, transfer, lease,
mortgage, or partition of agricultural land. The Act aims to ensure proper land
use, equitable distribution, and prevent speculative acquisitions.
2.1 Transactions that
require the Land Control Board Consents
S.6 (1) of the Land Control Act
lists transactions which require LCB consent. Failure to obtain LCB
consent renders that transaction null and void. The transactions listed are as
follows:
a) Sale, transfer, lease,
mortgage, exchange, partition or other disposal of or dealing in any
agricultural land situated within a land control area;
b) Division of agricultural land
into two or more parcels to be held under separate titles;
c) Issue, sale, transfer,
mortgage or any other disposal of or dealing with any share in a private
company or co-operative society which owns agricultural land.
Under S.6 (2), the declaration of
a trust of agricultural land situated within a land control area also requires
LCB consent.
2.2 Transactions that
do not require the Land Control Board consents
Under S.6 (3), LCB consent is not
required in respect of the following transactions:
a) Transmissions of agricultural
land (whether by testate or instate succession) unless that transmission would
result in the division of the land into two or more parcels to be held under
separate titles;
b) Transactions to which the
Government is a party or transactions which involve trust land. (Under the
Constitution of Kenya 2010, trust land is classified as community land.)
S.8 (1) of the Land Control
Act states the procedure for obtaining LCB consent. Applications
are to be made to the LCB through the appropriate lands office, using
prescribed forms (See Form 1 of the Schedule). Form 2 of the Schedule
contains the format of the Letter of Consent. The application must be made
within six months of the making of the agreement for the controlled
transaction. The Proviso to Section 8(1) of the Land Control Act, however,
states that the High Court may grant an extension of that period if there is
sufficient reason to do so and upon such conditions as it may think fit. (The
application is usually made by way of Originating Summons.)
Provincial Land Control
Appeals Board from which a higher appeal lies to the Central Land Control
Appeals Board. See Sections 11 and 12 of the Land Control Act
provides. Under S. 13(2), the decision of the Central Land Control
Appeals Board shall be final and shall not be questioned in any court. But
note: Judicial Review applies.
2.3 Situations where the
land control board be denied
Section 9 (1) (b) of the Land
Control Act provides that the Land Control Board consent ought to be refused in
the following situations:
(i) Where the person to whom the land is to be
disposed of-
- Is unlikely to farm the land well or to develop
it adequately; or
- Is unlikely to be able to use the land profitably
for the intended purpose owing to its nature; or
(c) Already has
sufficient agricultural land.
(ii) Where the person to whom the share to be
disposed of-
(a)Already has sufficient
shares in a private company or co-operative society that owns agricultural
land; or
(b)Would, by
acquiring the share, be likely to bring about the transfer of the control of
the company or society from one person to another and the transfer would be
likely to lower the standards of good husbandry on the land; or
(iii) Where the terms and conditions of the
transaction (including the price to be paid) are markedly unfair or
disadvantageous to one of the parties to the transaction; or
(iv) Where, in the case of the division of the land
into two or more parcels, the division would be likely to reduce the
productivity of the land.
Under Section 9 (1) (c), where
the person intending to acquire the land is a non-citizen, consent shall not be
given. However, under S.24, the President has power to exempt any
transaction or person from the provisions of the Land Control Act. Such
exemption is granted by way of notice in the Gazette. Note: Article
65 (1) of the Constitution 2010 states that a person who is not a citizen may
hold land based on leasehold tenure only and the lease when granted shall not
exceed 99 years. See also Section 107(3) of the Land Registration Act which
states that for the avoidance of doubt, any lease granted to a non-citizen
shall not exceed 99 years.
2.4 What happens when
a land control board consent is not given
Section 9(2), of the Land
Control Act provides that where an application for the consent of a Land
Control Board has been refused, then the agreement for a land-controlled
transaction shall become void-
- on the expiry of the time limit for an appeal to
the Provincial Land Control Appeals Board;
- where an appeal is made to the Provincial
Land Control Appeals Board and dismissed, on the expiry of the time limit
for an appeal to the Central Land Control Appeals Board; or
- where a further appeal is made to the
Central Land Control Appeals Board and dismissed.
The court the case of Caroline
Cherono Kirui v Liner Cherono Towett [2018] eKLR in making its
decision cited Section 8 (1) of the Land
Control Act and the cases of David Kinisu Sifuna –vs- Marriane
Eyaase Kisanji & 2 others [2015] eKLR and Joyce Mukami
–vs- Cypriano Kimathi Mwongo [2016] eKLR, where the courts held
that a transaction becomes void if consent is denied or not the necessary
party has failed to apply for consent within the time provide and without a
valuable reason as why they failed to apply for the consent.
2.5 Appealing the
Decision of the land Control Board
If a party is dissatisfied with
the decision, they may appeal to the Provincial Land Control Appeals Board, and
make a second appeal to the Central Land Control Appeals Board. An appeal
should be made within 30 days of receiving the decisions.
The judiciary has been very
strict with the provisions of this act, and in many instances have held that
the provisions are mandatory, it is therefore very imperative that parties seek
consent of the Land Control Board when dealing with agricultural land, or else,
the transaction will be rendered void.
CONCLUSION
Adherence to the regulatory
requirements not only facilitates registration but also aligns with the broader
objectives of equitable land distribution and preventing speculative land
acquisitions.