Finally property developers are celebrating after the government of Kenya uplifted the ban on land lease renewals. The guidelines come barely after 6 months having seen the impact the embargo has had on the real estate sector after some having to reduce their workforce. Prof. Jacob Kaimenyi issued the new guidelines, alongside Lands Principal Secretary Nicholas Muraguri and National Land Commission chairman Muhammad Swazuri, stating that they were meant to make land transactions transparent.
Last year December, the government placed a ban on land lease renewals due to high number of cases of forcible acquisition of property from people whose leases had expired. Lands Cabinet Secretary, Jacob Kaimenyi said the guidelines to lift the ban came after financial institutions began shying away from offering credit services to those who offer lease held property as security. The lease held property owners on the other hand who were seeking to redevelop their property were faced with a challenge as they required leases to secure funds from those financial institutions.
The embargo was lifted last Friday and Prof Kaimenyi says that guidelines will not prohibit recommendations made by a task force chaired by an expert on land matters, Mr. Ibrahim Mwathane, set to investigate all leases issued from 2010.