Legal Alert | Kenya | Land Rent Payment and Clearance Certificates Now Required to be Done Online
The Ministry of Lands and Physical Planning has introduced a new procedure for the payment of land rent and procurement of land rent clearance certificates effective from 23 May 2017.
New online process
Paying land rent and procuring the clearance certificate is now done on the Ministry of Lands and Physical Planning page of the e-citizen portal (www.ecitizen.go.ke).
Are direct bank payments an option?
The option of making direct cash debits to the bank has not been done away with completely. Once all relevant details are filled in on e-citizen you can opt to generate the demand invoice online, print and make payments at KCB Bank. KCB Bank appears to be the only authorised agents for receiving the land rent and have an integrated system allowing them to update the records on the e-citizen portal. Upon payment, records are to be updated. You will thereafter need to logon to your e-citizen account to print the clearance certificate.
The Ministry of Lands has also advised that no demand note will be issued over the counter from 23 May 2017 and all leasehold property owners are required to obtain rent demands online, and individuals in disagreement with the rent arrears amount are expected to upload receipts/proof of payments under the Land Rent tab on e-citizen.
Will the system work?
The system is currently untested and there will likely be some teething issues. We also note that Land Registry officials are still insisting that the clearance certificate generated online be presented at the registry for signing. We are however optimistic that this new online system will improve the efficiency of Kenyan real property transactions and eliminate unnecessary processes. We are closely following up on this new online regime and we will keep you updated on any further developments.
Should you have any questions on this legal alert, please do not hesitate to contact Mona Doshi.