Why you need a change of user approval before you buy

Houses under construction at Hill School in Eldoret town on March 30, 2015. Those who have bought agricultural land with the prospects of putting up houses have been confronted with the lack of change of user requirement. PHOTO | JARED NYATAYA  

In Summary

• For the Kenyan middle class, owning a piece of land is a sign that you have arrived.  For the last five years, the prices of land have more than tripled as people jostle for a piece of the pie.
• On the downside, those who have bought agricultural land with the prospects of putting up houses have been confronted with the lack of change of user requirement, which has seen them pump in more money and time, to fulfill this prerequisite.
• Many would be home owners in Kajiado, Kiambu and Machakos  and counties that had vast agricultural land tend to find themselves camped outside their respective county government offices chasing after this change of user approval.

By ALLAN OLINGO
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Mary Munene walks with a smile. She is a proud owner of two pieces of land at the Kisaju Plains Gardens.

During the open day held last month, Ms Munene came to the open day carrying banana and tree seedlings and planted them in her pieces of land.

“I just wanted to start tending to my pieces of land as I await the approvals from the Kajiado County government then start building. It’s exciting that I will have a place to call my own,” she shares.

Mary had bought the two pieces all measuring an eighth of an acre with plans to build her retirement home.

When DN2 caught up with her, she had just received a title deed for one of the pieces and was in the process of making the final payments for the other piece before she got the title.

“I chose to buy these parcels from the Baita company because out of every one else selling land in this area, they are the only ones who went a step further and secured a change of user approval and also have the approved architectural drawings for the houses to be constructed within this gated community,” she shares “This means that after getting the necessary approvals, I can start putting up my retirement home.”

Mary is one of the lucky few. Many would be home owners in Kajiado, Kiambu and Machakos  and counties that had vast agricultural land tend to find themselves camped outside their respective county government offices chasing after this change of user approval.

EXPENSIVE PROCESS

Henry Nkure, the Managing Director of Baita Trading says that they are proud to be one of the few companies in the Kajiado that is selling land that has a change of user approval and approved architectural plans.

“We have made it easier for would be home owners by getting these important approvals. Most people here are just selling off the agricultural land as it is without getting the change of user. By the time the buyer realises that they can’t just build, it’s too late and getting these approvals becomes costly and time consuming,” Mr Nkure says.

Rodger Karumpu, Baita Trading Chief Legal officer says that its important to sell a product that will give the owner the least of headaches especially when they buy especially if they are looking to construct a home.

“We decided to seek all the approvals prior to sub-dividing and selling so that we can minimise the trouble and cost people go through when dealing with the county government,” Mr Karampu said.

According to Mr Karampu, the biggest and most common mistake buyers make is buying alnd that does not have a change of user permit yet the owner wants to develop it as a real estate venture.

“From the prohibitive costs, the long time it takes to have a change user effected on the title and the danger of zoning, which may restrict the type of development one may want to put up, it’s always important to understand if the change of user in the land has been effected,” Mr Karampu says.

Muthoni Kamau, a conveyance advocate says that there are legal Instruments for containing land use conversions adding that all land in Kenya including free hold tenures is held on terms that are in themselves restrictive covenants.

“There exists various policies, statutes and regulations that are geared towards managing efficient and sustainable utilisation and management of land, and hence reduce the problems of inadequate land use, rapid urbanisation, environmental degradation and unsustainable production,” Ms Kamau says.

Those who have bought agricultural land need to apply for the change of user before they can develop the land for real estate. This comes with registered planner visits to the site, preparation of the gazette notice which should be done within 14 days, preparation of the planning brief and submission of the planning brief to the county governed.

LAND RENT ENHANCEMENT

“After the approval by the relevant county government of the change of user through the technical meeting, there will be the issuance of Approval-PPA2 which is followed by the submission of the PPA2 to the National Land Commission for approval,” Ms Kamau said.

The next step is the circulation of PPA2 to Director of Survey and Director of Physical Planning. After this is done one will need to organise for site report via a licensed surveyor who will then submit the comments on behalf of the Director of Survey and Director of Physical Planning to the National Land Commission.

“Once the comments are submitted, you will need to get a valuer for purposes of Land Rent Enhancement. The next step is the approval by the NLC Technical Committee, which is followed by re-Survey of the Property,” Ms Kamau shares.

Thereafter, a submission of survey works to Director of Survey will be done followed by approval of survey work by Director of Survey.  A licensed surveyor will prepare the new deed plan which will then head for approval by the Director of Survey.

After this the new deed plan together with old title will be submitted to the NLC who will prepare the Surrender of Title document to be signed by the land owner.

“A new Grant/Title is then prepared showing the new user and booked for registration. The Deed Plan is taken for verification by the Director of Survey after which the issuance of an IR Number for the new Grant is undertaken and registered. The Change of user is a legal process that has to be followed before one can confidently build their house of that land,” Ms Kamau says.

It is important for one to have a valid and unencumbered title, a proper planning brief prepared by a registered planner, paid up land rates and rents and a team of professionals, who will include a certified advocate and licensed surveyor or registered planner to assist, procure the same because of the documentation and processes involved.

“If you are buying the land and you are sure that it does have a change of user authorisation, then it’s imperative that you bargain so that you can factor in on the costs involved,” says Charles Mwangi a valuer.

PROFESSIONAL FEES

According to Mr Mwangi, the value of the land should be lower because it’s still considered an agricultural land and this should be ones bargaining chip.

Ms Muthoni says that the statutory costs for change of user stand at approximately Sh170,000 which is payable to the relevant authorities/ offices engaged in the processing of the change of user.

“There are also professional fees which vary from the professional team used like the advocates, the planner, valuer and licensed surveyor, which will balloon the final costs,” she says.

Kennedy Ocholla a planner says that land use planning is a very important element as it directs the manner in which certain areas are to be utilised and ensure that resources are suitably managed.

“The effective preparation and implementation of the same is however still wanting as is evidenced by the current land use disputes, poor environmental management, development of slums, pollution and the degradation of natural resources caused by rapid development and industrialisation,” Mr Ochola says.