New Rules on renewal of land leases
@2018-01-06 06:17:04

Introduction

In June, 2017, the government published new rules on the renewal and extension of leases. The rules set out a procedure for the application for renewal or extension of leases.

Notice of expiry of lease

The National Land Commission (NLC) is required to send a notice to the lessee through registered mail, informing him/her of the date of expiry of the lease and setting out the rights of the lessee to apply for extension and to whom to make the application. The notice should be sent within 5 years before the expiry of the lease and copied of the Cabinet Secretary or the relevant County Government.

 If the lessee does not respond to the notice within one year, the NLC should:

1. Publish the notification in two newspapers of countrywide circulation indicating where the application is to be made.

1. Conduct a physical verification of the land in order to establish the status of the land.

If the NLC finds that the lessee and the family are occupying the land, it will advise them to apply for extension and the consequences of failing to do so.

Applying for extension of lease

The lessee or an appointed administrator is required to make the application to the office of the NLC where the land is located. The applicant should attach the following to the application:

1. Copy of the ID/Passport or Certificate of incorporation;
2. For an administrator, letters of administration and confirmation of grant;
3. Current official search;
4. Passport size photograph;
5. For a company, the names of the directors and their citizenship status including a search from the   Registrar of Companies showing the shares of each director;
6. Land rent and rates  clearance certificates from the relevant authorities;
7. Information whether the title to be extended will be subject to any existing encumbrance(s);
8. Proof that the lessee has complied with the terms and conditions of the existing lease.

Within seven days of receiving the application, the NLC is required to forward it to either the representative of the Cabinet Secretary if the land is vested in the National Government or the County Executive Committee Member for lands if the land is vested in County Government for approval.

Where the term of the lease had expired without prior notice to the lessee, the lessee or the administrator must apply to the Commission for renewal of the lease. The process is the same as

above, but the applicant should also include the original lease to the application to confirm the status.

Approval or objection of application

The National or County Government may either:

1. Approve the extension of lease for a specified term. (If this happens, the land will be revalued to determine the payable land rent and other requisite fees, re-surveyed and geo-referenced and the lessee shall surrender the existing title or lease certificate in consideration for a new lease); or
2. Decline to extend the lease and give the lessee the reasons thereof within ninety days (90) from the date of the application for extension. The reasons for declining shall be limited to:

• That the government needs the land for a public purpose. In this case, the government is required to give the lessee a notice at least three years before the expiry of the lease; or
• That there is proof that the lessee has failed to comply with the terms and conditions of the existing lease

Appeals

If an applicant is aggrieved by the decision of the National or County Government to decline to renew a lease, he/she may refer the matter to an independent Appeals Committee. The Appeals Committee will be located in the office of the Executive Committee Member in charge of Land at each County.

By: Edward Maroncha