The Guidelines for renewal and extension of leases

The Guidelines for renewal and extension of leases seek to inform the relevant government agencies such as the Ministry of Lands and Physical Planning, County Governments and National Land Commission, lessees, professionals and other relevant persons, on the procedures relating to the extension and renewal of leases.

The Guidelines are anchored on Section 13 of the Land Act, which makes provision for Lessee’s pre-emptive rights to allocation.

The Guidelines were developed by the Ministry of Lands and Physical Planning in consultation with the National Land Commission, vide Gazette Notice No. 5734 dated 9th June, 2017.

APPLICATION FOR AND APPROVAL OF EXTENSION OF LEASES

Notice of Renewal

The National Land Commission is required to notify a person to whom a lease (lessee) is granted by registered mail, five (5) years before expiry of the leasehold that the lease is about to expire. The notice indicates the date of expiry and notifies the lessee of their pre-emptive right to apply for extension.

In cases where the lessee does not respond to the notice within one year, the Commission shall publish the notice on two newspapers of wide circulation.

Consequences of not applying for renewal of leases

The Guidelines outline the consequences of not applying for renewal of leases to include forfeiture of the preemptive right over the land and the automatic reversion to the National or County Government.

Procedure for Extension

The procedure for application for extension involves;

1. The registered proprietor of the land or the appointed administrator lodging an application with the Land Commission.
2. Upon receipt of the application, the Commission is required within seven (7) days, to forward the application for approval to the representative of the Cabinet Secretary for land vested in the National Government or the County Executive Committee Member of lands for land vested in the County Government.

The Commission shall have and operate a serialized register where such applications shall be registered.

Factors for consideration in granting a Lease to citizen or non-citizen

The factors outlined in the Guidelines to be considered by the National or County Government in processing of an application for extension of leases for a lessee who is a citizen or a non-citizen are:

• Disclosure of Directors and their citizenship.
• Proof of clearance certificate.
• Information on whether the land is subject to any encumbrance.
• In instances of large scale investments, the National or County Government shall consider whether, the extension is beneficial to the economy and the country as a whole and whether it is in accordance with the national development goals and objectives.

RECOMMENDATION FOR APPROVAL OF EXTENSION OF LEASE

The National and County Governments, before approving the extension, are required to seek recommendations from the following officials; The County Executive Committee Member responsible for land; The County Government Surveyor; The County Government Physical Planner; The Land Administration Officer of the Commission; and Any other relevant authority.

Upon receipt of the recommendations, the National or County Government may;

• Approve the extension of the lease for a specified term or
• Decline to approve the extension giving reasons to the lessee within ninety (90) days from the date of the application for extension.
• The decision by the National or County Government is to be forwarded to the Land Commission for implementation.
• In cases where the approval for extension of a lease is granted, the Commission shall; have the land revalued to determine land rent payable and other requisite fees, have land re-surveyed and geo-referenced, have the lessee surrender the existing title or lease certificate in consideration for a new one, issue a new letter of allotment in a prescribed form and a new lease issued.

REJECTION OF APPLICATION TO EXTEND A LEASE

Notice of non-extension of lease

The National or County Government is required in cases of non-extension of leases to give the lease holder notice of at least three (3) years before the expiry of the lease, and a copy of the same issued to the Land Commission

Grounds for rejection

The National or County Government may reject to extend a lease on grounds of; use for public purpose and, if the land is included in the County Spatial Plan and Cities Urban Area Plans as provided for under the County Governments Act, 2012 and the Urban Arears and Cities Act, 2011 or where there is proof that the lessee has not complied with the terms of the existing lease.

Upon notification of the rejection to extend the lease:-

• The National or County Government shall carry out an inventory of the developments on the land;
• The lessee shall; be required not to put up new developments on the land; and the lessee shall be required to approach the respective government for compensation of the said developments.

APPEAL ON REJECTION OF EXTENSION

Where the National or County Government declines to grant an extension of lease, the aggrieved party may lodge an appeal with the Commission Appeals Committee.

Appeals are to be heard at the respective counties in the office of the Executive Committee Member in charge of Land at the County level.

RENEWAL OF LEASES 

• Where the lease expires without prior notice by the Land Commission to the lessee, the lessee may be required to apply for a renewal of lease.
• The application for renewal shall be lodged with the Commission and shall be done by the registered owner of the expired lease or appointed administrator.
• Before making the decision on whether or not to approve the application for renewal, the Commission shall seek recommendations of the officials stated herein above.
• Where the application for renewal is allowed, the Commission shall have the land revalued to determine land rent payable and other requisite fees, have land re-surveyed and geo-referenced and issue a new letter of allotment in a prescribed form and a new lease issued.
• Where Commission gives an objection against renewal, the Commission shall require the relevant authorities to give reasons for the rejection within thirty days.