Notice On Land Title Conversion

Notice On Land Title Conversion

On 31st December 2020, the Cabinet Secretary for Lands and Physical Planning (the “Cabinet Secretary”) pursuant to the Land Registration (Registration Units) Order, 2017 issued a notification of the conversion of land titles within the Nairobi Registration Unit whose title numbers have been converted to new parcel numbers with corresponding acreage (Gazette Notice No. 11348.).  In this alert, we shall briefly explain the legal basis for the conversion as well as the effect it will have on registered proprietors and interested parties.

Legal basis for conversion of land titles

Historically, the Constitution of Kenya, 2010 compelled Parliament to rationalize the then land regimes under the Government Lands Act, the Registration of Titles Act, the repealed Indian Transfer of Property Act, the Land Titles Act and the Registered Land Act (the “Repealed Acts”) and to revise and consolidate the Repealed Acts in order to centralize land services and alleviate fraud and delays in service delivery. In striving to do so, the Land Registration Act No. 3 of 2012 (the Act”) was enacted thereby repealing all the other land registration regimes. In spite of its enactment, all land transactions have till now been processed on the old registers under the savings and transitional provisions in the Act.

The Cabinet Secretary has pursuant to the provisions of the Act began the conversion process to move all parcels of land to the purview of the Act and away from the scope of the Repealed Acts.

Objection to the Conversion List and the Cadastral Map

A person who is aggrieved by the information in the Conversion List must within 90 days from date of publication of the Gazette Notice:

1. Make a complaint in writing to the Land Registrar outlining their grounds of objection to the conversion or corresponding acreage, or,
2. Apply to the Register for the registration of a caution against the property pending clarification of any issue or resolution of any complaint.
3. The Registrar may register a restriction against the parcel of land until the complaint is resolved and must resolve any complaint within ninety (90) days of receipt. An aggrieved party will have the right to appeal the Registrar’s decision at the Environment and Land Court within thirty (30) days.

The process of Conversion of old titles

According to the press statement issued by the Cabinet Secretary on 12 January, 2021, the conversion process shall entail the following steps:

1. The land survey office will prepare the cadastral maps for parcels of land within each land registration unit registration section/block together with a conversion list indicating new and old numbers and their corresponding acreage.
2. The cadastral maps and a conversion list will be published in the Kenya Gazette and two daily newspapers specifying the date after which the register shall be open to the public for dealings within the registration unit;
3. Any person with an interest in land in a registration unit shall be able to lodge a complaint to the registrar who shall resolve the complaint within 90 days of receipt.
4. All the registers shall then be closed at the commencement date and all transactions carried out in the new register. All the closed registers and supporting documents shall, from 1st April, 2021, be maintained in the new registration unit.
5. Finally, a notice will be published in 2 nationwide newspapers and announced in nationwide radio stations inviting registered proprietors to apply for replacement of title documents from the closed registers. The application shall be accompanied by the original title and the owner’s identification documents and thereafter the registrar will replace title deeds with new ones.

The Cabinet Secretary has also advised that the conversion will do away with the deed plans as registration instruments and now rely on Registry Industry Maps (“RIMs”) which will be accessible to land owners and interested parties on demand for verification of boundary details. It is anticipated that the RIMs will alleviate fraud as the RIMs display all parcels of land in an area unlike a deed plan which only displays the data of one parcel.

Effect of the Conversion on Land Owners and interested third parties.

• Replacement of Titles: Registered owners of all parcels of land within the relevant registration unit will have to surrender the titles issued under the old registers to the Land Registrar in the manner provided above for issuance of new titles. If the Land Registrar is satisfied with the application, a new title will be issued. All the existing registers will then be closed and all transactions carried out in the new registers.

• Effect of Conversion on Financiers: The Conversion will have an effect on the security already registered in favour of financiers as the existing security is registered over the old land reference numbers.  To mitigate any risks that will follow the Conversion, it is advisable for financiers to undertake a legal audit of all the properties that they are holding in relation to a specific registration unit to confirm whether (a) the title to the securities that they are holding have been listed in the Gazette Notice and (b) to ensure that the information contained in the conversion list has been captured correctly, to conduct due diligence on the cadastral maps including the RIMs at the Survey of Kenya Headquarters for verification of boundary details, and lastly, together with the registered proprietor, to apply to the Land Registrar for the cancellation and replacement of the old titles and to contemporaneously perfect their security over the new titles.

Conclusion

The conversion of the land titles will affect not only land owners but also persons who have an interest in the affected parcels of land. We anticipate that the Lands Registry will give further directions on how the exercise will be implemented in a manner that ensures that the process will not be marred by fraud. Suffice to say, it is upon the registered proprietors and any interested third party to take note of the conversion and undertake the necessary due diligence.

This alert is for information purposes only. Should you have any questions or need legal advice, please contact Mwangi Kibicho (mwangi@jkkibicho.co.ke) or Leah Muchiri (wmuchiri@jkkibicho.co.ke)