ALLOCATION
ALLOCATION
ALLOCATION
PUBLIC LAND
PUBLIC LAND
• Article 62 of the Constitution of Kenya, 2010 defines public land. This
includes;
• Government land.
• Land held by state organs except where the state organ is a tenant under
a private lease.
• Land reverted, surrendered or sold to the state.
• Land not claimed by anybody under any law.
• Land where the registered owners have died and their heirs have not
claimed it.
• All minerals and oil.
Cont…
• Government forests(except community forests, ancestral land or trust land)
government game reserves, water catchment areas, national parks,
government animal sanctuaries and specially protected areas.
• All roads
• All rivers, lakes and water bodies
• The territorial sea, the exclusive economic zone and the sea bed
• The continental shelf
• All land between the high and low water marks
• Any residuary land that is neither private nor community
• Land stated by statute to be public land.
ALLOCATION OF PUBLIC LAND
• Section 2 of the Land Act no. 6 of 2012 defines allocation of land as
the legal process of granting rights to public land.
• Section 12 of the Land Act no. 6 of 2012 further provides for the
allocation of public land.
• It states that it is within the discretion of the National Land
Commission(NLC) to allocate any public land on behalf of the national
or county governments.
• The NLC may set regulations describing the criteria for allocation of
public land. Such criteria includes;
CRITERIA FOR ALLOCATION OF
PUBLIC LAND
• Forms of ownership and access to land under all land tenure systems.
• The procedure and manner of setting aside land for investments.
• Procedures to be followed with respect to auction and disposition of
land.
• Appropriate mechanisms for repossession of land given to citizens at
the expiry of a lease.
• Mechanisms of benefit sharing with local amenities whose land have
been set aside for investment.
To ensure a transparent process, such allocation shall be conducted by
the following methods:
METHODS OF ALLOCATION OF
PUBLIC LAND
• Public auction to the highest bidder at prevailing market value
subject to and not less than the reserved price.
• Application confined to confined to a targeted group of persons or
groups in order ameliorate their disadvantaged position.
• Public notice of tenders as it may prescribe.
• Public drawing of lots as may be prescribed.
• Public request for proposals as may be prescribed.
• Public exchanges of equal value as may be prescribed.
• The NLC shall ensure that any public land that has been identified for
allocation does not fall within any of the following categories;
• Public land that is subject to erosion, floods, earth slips or water
logging.
• Public land that falls within forest and wild reserves, mangroves and
wetlands or fall within the buffer zones of such reserves or within
environmentally sensitive areas.
• Public land that is along watersheds, rivers and stream catchment,
public water reservoirs, lakes, beaches, fish landing areas riparian and
territorial sea as may be prescribed.
• Public land that has been reserved for security, education, research
and other strategic public uses as may be prescribed
• Natural, cultural and historical features of exceptional national value
falling within public lands.
• Reserved land.
• Any other land categorized as such by the commission, by an order
published in the gazette.
• NLC may set aside land for investment purposes subject to the guide
set in article 65 of the Constitution of Kenya.
• The commission ensures that the investments in the land so set aside
benefit local communities and their economies.
• Such investment land may also be set aside and allocated to foreign
governments on reciprocal basis in accordance with the Vienna
Convention on Diplomatic Relations to a foreigner at the expiry of the
term set for the allocation, termination and extinction reversion of
interests or rights in and over the land shall vest in the national or
county government as the case may be.
• There is a bar to allocation of public land unless it has been planned,
surveyed and serviced and guidelines for its development.
• Such allocation of public land may require the NLC to impose any terms,
covenants, stipulations and reservation that it considers advisable
including;
1. That the applicant shall personally occupy and reside on the land for a
period set by the commission
2. The applicant shall do such work and spend such money for permanent
improvement of the public land within the period specified by the
commission or
3. The consideration that must be paid of a disposition of public land.
• Allocated public land shall not be sold, disposed off or subdivided
unless it is developed for the purpose for which it was allocated.
• Where the allocated is not developed in accordance with the terms
and conditions stipulated in the lease, the land shall automatically
revert back to the national or county government.
LEASE PRE-EMPTIVE RIGHTS TO
ALLOCATION
• Upon expiry of leasehold allocated land, it shall offer to the
immediate past holder of the leasehold interest pre-emptive rights to
allocation of the land provided;
i. Such lessee is a Kenyan citizen
ii. The land is not required by the national or county government for
public purposes
• The NLC may make rules to allow this right to pre-emptive as follows
i. prescribing the procedures for applying for extension of leases
before their expiry.
ii. Prescribing the factors to be considered by the commission in
determining whether to extend the tenure of the lease or re-allocate
the land to the lessee.
iii. The stand premium and/or the annual rent to be paid by the lessee
in consideration of extension of the lease or re-allocation of the land
iv. Other covenants and conditions to be observed by the lessee.
NOTIFICATION REQUIREMENTS
APPLICABLE TO ALLOCATION OF
PUBLIC LAND
• NLC shall before allocating any public land issue, publish, or send a notice of action to
the public and interested parties, atleast 30 days before offering for allocation, a tract
or tracts of public land.
• The notice envisioned shall include the terms, covenants, conditions and reservations
which are to be included in the conveyance document and the method of allocation.
• Public comment shall be allowed 15 days after issuance of the notice.
• Atleast 30 days prior to the allocation of public land, NLC shall send a notice to the
governor in whose county the public land proposed for allocation is located and to
the head of governing body of any administration, subdivision having adminstartion
or public services responsibility in the geographic area within which the lands are
located and to the head of any administrative subdivision heaving administration or
publice services responsibility in the geographic area within which the lands are
located.
Cont…
• This notice shall be sent to other known interested parties including
but not limited to adjoining land owners, persons in actual occupation
of the land including;
a. Marginalised communities and groups living in the general vicinity
of the public lands being preserved for allocation and
b. Boards of cities and municipalities and town administration created
under sections 12, 13 and 31 of the Urban Areas and Cities Act no.
13 of 2011, in the geographic vicinity within which the public lands
proposed for allocation are located.
Cont…
• The notice shall be published in the Kenya Gazette and at least once a
week for a period of 3 weeks and thereafter shall be published in a
newspaper of wide circulation in the general vicinity of the public land
being proposed to be offered for allocation, the appraised value of
the land, describe with particularity each parcel of land to be
allocated and specify that the terms of allocation shall be available in
NLC’s offices in Nairobi and the commission office nearest the land
being proposed for allocation.
• Should NLC fail to provide notice of proposed allocation, may cause
NLC to do the following;
i. It may require that the notification procedures outlined be
repeated or;
ii. It may void the allocation on the grounds that the notification
requirements were not properly conducted.
ALLOCATION BY WAY
OF TENDERS
PART III OF LAND REGULATIONS ACT,2017; REGULATION 10-21
Invitation to Bid
• The commission shall after giving notice in accordance with section 14
of the Act , invite bid for tenders by publishing a notice in form LA 6
set out in the schedule at the county , sub-county and ward offices
and in two daily newspapers of nationwide circulation and one local
newspaper at least 2 months before the date of opening the bids.
• The notice inviting the bids shall with respect to each tender specify ;
(a) the sale number
(b) bidding information ( the particulars of parcel or parcels in offer,
the date and time for submission of the bid registration form , the bid
submission closing date and time and the reserve price )
Invitation to Bid Cont’d
(c) a schedule of the list of properties with the item number for bidder
reference
(d) place and time to inspect land
(e) bidder registration requirement as well as contact person(s) or
place(s) and times at which bidders can register and obtain bid forms
(f) any other specific terms and conditions of sale
Cont’d
• Every bid shall be submitted in a sealed envelope.
• The sealed envelope containing the bid shall be placed in a closed and
sealed box provided for that purpose.
• Where a bid is received by an officer authorized to receive the bids ,
the officer shall upon receipt stamp the sealed envelope with an
official stamp and shall place it in a closed and sealed box provided for
that purpose.
• Upon closing of the bids , the authorized officer shall empty the
sealed box containing the bids .
• Bids shall be opened in the presence of the bidders.
Preparing List of Bids and Bidders
• The bids shall be numbered consecutively and the word “last” endorsed
on the last bid and initialed by the authorized officer and witnessed by
at least one other member of the commission .
• The authorized officer and at least one other member of the
commission shall prepare and sign a list of the bids showing the number
of the bid and name of the bidder.
• Upon preparation and signing of the above list ; the original list shall
remain with the authorized officer for eventual incorporation in the
minutes , the duplicate by the witnessing member and the triplicate
shall be forwarded to the accounting officer of either the county or
national government .
Selection of the Winning Bid
• The commission shall meet within 2 official working days of the date
of closing the bid to select the wining bid.
• Where the commission is of the opinion that it was not in public
interest to award the highest bidder, it shall reject the bid and give
the reasons for doing so and be recorded in the minutes.
• Minutes of the meeting held shall be recorded by the secretary and
signed by the chairman.
• Within 7 days of the meeting , the secretary shall notify the successful
bidder and also the unsuccessful ones of the reasons of their rejection
and the details of the successful bid.
Payment of the Purchase Price
• The commission shall issue a letter of allotment in Form LA 5 of the
schedule to the successful bidder.
• The successful bidder shall pay to the commission the stand premium
within 90days of receipt of letter of notification .
• However , the commission may cancel or amend the whole or part of
the tender for sale of land at any time and for any reason.
• Reasons for cancelling tender may include; receives information of or
suspects collusion among bidders, suspects the use of coercion or
threat by a bidder(s)to dissuade the submission of bids or affect the
content of another bidders’ bid.
Cancellation Cont’d
• Where the commission cancels the tender, it shall not be liable for any
costs and liabilities incurred by the bidder or third parties.
• Upon cancellation of tender, the commission shall within 14 days refund
all bid deposits received except for the non-refundable bid submission
fee.
• A member of the commission who has an interest in the tendering
process should disclose and exclude himself to avoid conflict of interest .
• Failure to disclose the interest is an offence. The process under this part
is usually in compliance with Public Procurement and Assets Disposal
Act, 2015.
ALLOCATIO
N BY
PUBLIC
AUCTION
LEGAL FRAMEWORK
● Land Act No. 6 of 2012:- section 12, 14
● Land (Allocation of Public Land) Regulations,
2017 a.k.a Legal Notice 284 of 2017:- PART II
● Public Procurement and Asset Disposal (PPAD)
Act, No. 33 of 2015
PUBLIC AUCTION: THE PROCEDURE
STEP 1: NOTIFICATION OF ALLOCATION STEP 2: APPOINTMENT OF
AUCTIONEER
● Section 14, Land Act
● To the public and interested parties ● Regulation 4- Appointment of
● At least 30 days before allocation auctioneer
● Terms, covenants, conditions, reservations, method of ● By name
allocation ● Licensed
● Agent of the Commission
● 15 days for the public to comment
● One or all parcels
● Governor, administrative head, head of governing body-
30 days before allocation
● Interested parties: adjoining land owners, persons in
occupation, marginalised groups/ communities, cities/
municipalities/ town administrators
● Gazette, and in a newspaper (in circulation in the vicinity)
at least once a week for 3 weeks.
● Place, date, time, terms(Commission's office), appraised
value, particulars of the parcel(s).
STEP 3: NOTICE OF THE AUCTION
3. The notice should also contain the date and place where
the allocation was done.
• It is paramount to note that the letter of allotment
contains the details of the offer including:
1. The name,identification number and address of the
allotee.
2. The particulars of the parcel of land on offer,including
the parcel No. ,size, geographical location and terms of
the lease.
3. Indicate the stand premium and any other fees payable
and the time limit for paying the same.
4. Indicate the applivable special conditions.
Allocation through request for proposals
Dear Sir/Madam,
RE: Parcel No………………………………………………………………..
I have the honor to inform you that the National Land Commission, on behalf of the National /County
Government of.............. hereby offers you a grant of the above parcel subject to your formal written
acceptance of the following conditions and to the payment oft the charges as prescribed hereunder:
AREA:………..hectares (approximately)
TERM years from the......... Day of ...........20.....
STAND PREMIUM Kshs ....................
ANNUAL RENT Kshs.......................
Rent from…………… to..........
Conveyance Fees Kshs …………..
Registration Fees Kshs………..
Rates Kshs….…...
Stamp Duty Kshs..........
Survey Fees Kshs ..............
Road and Drains Kshs…....
Others Kshs……….....
Receipt No............
Less Deposit TOTAL Kshs
=================
GENERAL: This Letter of Allotment is subject to, and the lease will be made under the provisions of
the Land Act,2ol2 (No.6 of 2012) and certificate of title will be issued under the Land Registrarion
Acr,2012 (No. 3 of 2Ol2)
SPECIAL CONDITIONS: (See attached)
I should be glad to receive your acceptance of the attached conditions together with banker's cheque
for the amount as set out above within 90 days of the postmark:
If acceptance and payment respectfully are not received within the said 90 days from the date hereof
the offer herein contained will be considered to have lapsed.
At the time you commence building you should exercise the greatest care to ensure that any building
or other works are contained within the boundaries of the parcel for should you overstep the
aforesaid boundaries the cost of removal and reconstruction must be borne by you.
The issue of the Government Iease will be undertaken upon survey and proof of payment.
Your full name(s) ID, PIN, ADDRESS (Postal and Physical) AND CERTIFICATE OF INCORPORATION
(where applicable) in BLOCK LETTERS, should be given for the purpose of the Certificate which will be
submitted to you later. The attached special conditions form part of the offer which must be accepted in
writing.
Date……………….,20……
Yours faithfully,
Authority:
……………………………………….
For: National Land Commission
CC.
To: CS, Ministry in charge of lands
Director of Surveys
Director of Physical Planning
The County Executive Committee Member of Lands
O/C Land Rent
O/C Rates
The Accountant
O/C Records All to note.
Senior Plan Record Officer
FORM LA 9 (r.28(2))
REPUBLIC OF KENYA
NATIONAL LAND COMMISSION
REQUEST FOR RESERVATION OF PUBLIC LAND FOR INVESTMENT PURPOSES
To: The National Land Commission
The National Government or County Government of…………… of P.O.
Box......................email.................hereby applies for reservation of land whose particulars are described
as hereunder:
a) Plot/parcel No. (where applicable)……………………………….
(attach a cadastral plan or a base map)
b) Locality …………………………………………………………………….City/Town/ Ward
c) Plot size (Ha) …………………………………………………………………..
(a) Purpose for which the land is required (specify)……………………..
(attach a brief description of the intended investment)
Date………………………………… Signature……………………………………..
Name ……………………………………………………
Designation ………………….
FOR official use only
Recommended/Not recommended
…………………………………… Date……………………
Chairman
National Land Commission
Regulation 27 (1) – (5) [Commission to invite public proposals]
• National or County government request the Commission to invite public to submit proposals for
utilization or development of land.
• The Commission issues thirty (30) days notice for submission of proposals in two (2) newspapers
with nationwide circulation specifying details, terms of reference, requirements of proposals, mode,
method, and process of submission of proposals.
• After submission of proposals, the Commission determines which proposals meet specified criteria,
and thereafter prepares report for National or County governments’ consideration.
• National or County government decide which proposals are suitable and recommends those
successful applicants to the Commission for allocation of land.
• The Commission issues Letters of Allotment in Form LA 5 to successful applicants and also notifies
applicants of unsuccessful proposals.
Regulation 28 (1) – (8) [Setting aside land for investment purposes at the
request of the county]
• National or County government request the Commission to set aside land for investment purposes
in Form LA 9 accompanied by a base map indicating the location of the land
• The Commission determines suitable land for investment purposes through consideration of the
size and suitability for investment; the viability of relevant infrastructure; and whether proposed
investment conforms with approved development plans and conditions for the land
• The Commission checks if land proposed for reservation on base map does not fall in categories of
public land prescribed in Section 12 (2) of the Land Act.
• The Commission issues notice in at least two (2) daily newspapers of nation-wide circulation, affix
notices at county, sub-county and ward offices inviting comments or objections on intended setting
aside of public land
• Notices include a description of the land in issue; date, venue, and time of public consultations; and
provide for thirty (30) day period for making representations.
• After receipt of representations from the public, the Commission analyzes contents to form general
opinion, takes into consideration other matters required under Land Act or any other land, and
determines whether setting aside of land be approved in view of considerations from
representations and laws.
Regulation 29 (1) & (2) [Allocation of land for investments]
• The Commission advises National or County government to undertake planning, survey, geo-
referencing and servicing of approved land set aside for investment purposes
• Allocation within reserved land to investors done in accordance with Regulations depending on
the mode of allocation
STEP 4: THE AUCTION
● Conducted by the auctioneer (regulation 4) appointed by the Commission in the presence of
an officer of the NLC.
● Agent/ auctioneer declares highest bidder as winner if reserve price reached
● Winner pays in full or the percentage specified in the notice at the fall of the hammer. At least
25% of stand premium/ reserve price
● Certificate of sale issued to winner signed by agent. Form LA 4
● Present the certificate to NLC. To issue letter of allotment. Form LA 5. Pay balance within 90
days
● If no bid reaches reserve price, the auction is repeated.
● Commission to ensure the process complies with the PPAD Act.
ALLOCATION TO TARGETED GROUP OF PERSONS
• Section 134 of the Land Act provides for Establishment of approved settlement
schemes.
• Obligation is upon the national government in consultation with the
Commission to implement settlement programs to provide access to land for
shelter and livelihood.
• Upon planning and survey, land in settlement schemes shall be allocated to
households in accordance with national values and principles of governance
and the principles of land policy provided for in article 60 of the Constitution.
• Land acquired in a settlement scheme shall be subdivided and a transfer shall
only be allowed through a process of succession.
• Beneficiaries of land in settlement schemes shall pay a sum of money as may
be determined from time to time by the body of trustees responsible for
settlement matters.
Process of acquiring title after allocation of land
• Before public land is allocated it must go through a
process of heaving plots from the public land bank.
• This process will involve the following steps;
1. The Director of Physical Planning prepares a plan
creating plots for allocation for various users.
2. The Director of Surveys or private surveyor surveys the
land and produces a survey plan and numbering of the
parcels of land.
3. The Director of Physical Planning in conjunction with
the National Land Commission and other regulatory
agencies prepare a guideline for developments under
that land.
4. The National Land Commission advertises the plots for
allocation to allottes or vets the targeted allottes Incase
of special cases.
Cont'd
1. The NLC oversees allocation of the plots to
the allottes in a fair and just process.
2. The National Land Commission will then issue
letters of allotment to the qualified allottes.
3. The National Land Commission will then
prepare lease documents and execute them
on behalf of the National or County
government.
4. The lease document will then be forwarded to
the District Land Registrar for registration and
issuance of certificate of lease to the allottes.
Procedure for
acquisition of title
after allocation of
public land
Acceptance of Offer
A letter is written to NLC accepting the offer and the conditions of allotment. Payments are
made of the statutory fees provided for in the letter of allotment after which you are given a
receipt for your payment.
The National Land Commission opens a file to the plot that you are seeking title and also
gives it a number for identification purposes.
Payments
After assessment, a stamp duty at 4% of the value of land is required to be paid by the
individual seeking title of the land. A rent and rate clearance certificate is issued after
confirmation of the necessary payments are exhausted.
Registration of lease
The land registrar then receives the lease documents for the process of registration. After the
payment of certificate of lease is done, the issuance of certificate of lease is then carried out as
the final stage of acquisition of title. 54
Its important to note that an allotment letter is not a title deed. Processing a
title deed based on an allotment letter is possible but only if the necessary
payments have been made and the local land authorities are willing to convert