Real estate stakeholders show concerns about The proposed law
Real estate stakeholders have expressed concerns about a proposed law that would require land-buying companies to deposit Ksh500 million before registering. They claim they have not been consulted on the matter and are unclear about the specifics of the proposal. Kirinyaga Central MP Joseph Gitari has given notice to the National Assembly Speaker, Moses Wetang’ula, of his intention to introduce a private member’s Bill to regulate land-buying companies. The proposal has not yet been debated in Parliament.
Real estate players in Kenya are expressing concern over a proposed law that seeks to compel land-buying companies to deposit Sh500 million before being registered. The bill aims to protect land buyers in Kenya from fraudulent practices and the deposit is meant to cushion customers.
However, the Association of Real Estate Stakeholders has said they were unaware of the draft Bill. “We have not received or seen such a proposal and cannot discuss it. We, therefore, decided to come up as self-regulation players,” said Nyota Njema Real Estate CEO Perminus Kariuki, who is also an official.
The association has decided to be the sole point of reference for the real estate market, where buyers and sellers can call for transaction confirmation. New members have to show a certificate of incorporation, a list of directors, and a Kenya Revenue Compliance Certificate.
“The biggest challenge we face in this sector is the lack of regulation. We are looking forward to a proper supervision policy framework put in place,” added the CEO of Miliki Properties, Martin Njoroge.
The proposal comes at a time when Kenya has witnessed a rise in land fraud, with many people losing their hard-earned savings to fraudsters. In recent years, land fraud has been on the rise, with cases reported almost every week.
This has led to the need for the government to step in and regulate the real estate sector to protect the public from fraudsters. The proposed bill, if passed, will help curb land fraud and protect Kenyans from losing their hard-earned money to fraudulent practices.
The real estate sector is a crucial contributor to Kenya’s economy, second only to agriculture, according to the Kenya National Bureau of Statistics. With two million direct jobs and five million indirect jobs, it plays a significant role in providing employment opportunities in the country.
Additionally, the sector handles 40% of the diaspora remittances, highlighting its importance to the economy. However, property fraud is a growing concern in the sector, with the Ministry of Lands recording 7,052 cases in 2017, costing the economy approximately Sh60 billion annually, as stated by Cesare Mbaria, the Director of Survey.