Investor confidence at risk as LSK warns of rampant land registry irregularities

Investor confidence at risk as LSK warns of rampant land registry irregularities

Odhiambo said the industry is riddled with complaints about irregular approvals, compromised registries and poor coordination between government agencies and county authorities.

The Law Society of Kenya (LSK) has raised concerns over growing corruption, inefficiencies and bureaucratic delays within the real estate and land administration sectors, warning that the challenges are undermining investor confidence and property ownership rights.

Speaking during the Association of Real Estate Stakeholders (RESA) Annual Dinner in Nairobi, LSK President Faith Odhiambo said the industry is riddled with complaints about irregular approvals, compromised registries and poor coordination between government agencies and county authorities.

Odhiambo called for stronger collaboration among stakeholders, noting that joint efforts are crucial to addressing the systemic problems affecting the sector. She also urged closer engagement between the LSK and the Ministry of Lands to resolve the growing concern over illegitimate title deeds, which have left many landowners uncertain about the legality of their properties.

“We have already seen the various challenges that are in the industry, complaints in the Ministry of Lands about corruption, inefficiencies and the constant challenges not only at the land registries but also approvals from the various county governments as well, and the challenges thereafter that arise for those who are taking loan facilities,” Odhiambo said.

She noted that the problems were threatening investor confidence and exposing property buyers to potential losses.

“We’re seeing increasing complaints about corruption and inefficiencies at the Ministry of Lands and across county governments. These challenges are not only at the land registries but also in approvals for developments. They have far-reaching effects for those taking loan facilities, and banks must ensure proper securitisation to protect investors,” she said.

Odhiambo emphasised that the solution lies in multi-sector collaboration involving lawyers, bankers, surveyors, real estate agents and planners to collectively identify and seal loopholes that undermine transparency in the property market.

“We must bring all players together, from financiers to regulators, to develop solutions that restore order and accountability. And where processes are flawed, we must not hesitate to challenge them in court to ensure transparency and fairness for all parties,” she said.

She further observed that courts have recently adopted a tougher stance on property ownership disputes, stressing the need for buyers to carry out thorough due diligence before purchasing land.

“Due diligence must go beyond surface checks. Investors need to dig deep into the ownership history of properties and verify all approvals. We have seen people lose land that changed hands several times simply because it was originally public land,” she warned.

At the same event, newly appointed RESA Vice Chairperson Abigail Zuena Gikonyo turned her focus to women’s empowerment in real estate, urging women to be deliberate about establishing ownership rights.

“Women must now be intentional about owning property. The law has evolved beyond the right to own property; you must prove your financial contribution toward its purchase. In cases of divorce or death, if you cannot demonstrate that contribution, the law may not necessarily protect you,” Gikonyo said.

She noted that property ownership among women remains disproportionately low despite constitutional guarantees and called on women to pursue joint ownership and ensure proper documentation when acquiring assets.

RESA Chairperson Chrispus Wachira reassured investors that the association is enforcing higher professional standards to safeguard the public from fraudulent transactions.

“We want to tell Kenyans they will not lose their hard-earned savings if they engage members of this association. We are instilling a culture of professionalism and adherence to process both within organisations and in compliance with national laws,” Wachira said.

He added that RESA members are undergoing training to uphold ethical standards and comply with both internal company policies and government regulatory frameworks.

The annual dinner brought together key players from the legal, banking and property development sectors to discuss reforms in the real estate market, a multi-billion-shilling industry increasingly affected by disputes, fraudulent dealings and unverified investments.

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