Loan approval form.[Photo/Michaelyeoh]
Jitters among banks which have been lending and using collateral like land titles and leases could be voided following failure to include anticipated provisions on the validation and also failure of audit of the documents in proposed rules are misplaced.
The Ministry of Land says that the new regulations that have also spooked lawyers and real estate players were not keen on validation and audit clauses because these would have no basis in any section of either the Land Act or the Land Registration Act.
Over a week ago the Kenya Bankers Association and the Law Society of Kenya were quoted in the local media stating that they had brought up issues with the draft land regulations since they failed to show how validation and audit of titles and leases would be done for transactions that had been made since 2012.
These regulations were made to ensure that the new land laws were operational and that they were published in the Kenya Gazette last November.
The audit troubles and validation partly came about after a court judgement by Justice Joseph Onguto whereby parties with stakes in the land sector have had varying interpretations.
According to the judgment the ministry stands firm that the court did not invalidate any titles or provide for an audit.
Considering that there is also provision for any corrections in the existing laws, there was no need therefore to provide for such in the regulations, the Ministry says.
“The judgment issued by Justice Onguto neither invalidated the leases/titles nor ordered the ministry to validate the same… Lately there have been allegations made through the media that the regulations have critical omissions on audit and validation of leases issued since 2012,” said Prof Jacob Kaimenyi, the lands Cabinet Secretary.
Justice Onguto mentioned that there was an ongoing process of validating titles and leases issued after 2012 noting that there could be adverse consequences should he declare them invalid.