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Owning idle land to become costly
itz
#1 Posted : Tuesday, November 03, 2009 10:52:00 PM
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Joined: 3/20/2009
Posts: 348
http://www.nation.co.ke/...4/-/uol5vr/-/index.html

its about time this sector becomes more controlled and organized.whats your take?
mwana
#2 Posted : Wednesday, November 04, 2009 1:17:00 AM
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Joined: 6/4/2007
Posts: 35
The key phrase here is 'to be'. That means the following steps:



1. Taskforce to look into it first.

2. Bill to be drafted based on taskforce recommendations.

3. Bill to be tabled in cabinet for approval

4. Cabinet forms sub-committee to look at bill

5. Cabinet sub-committee returns bill to main cabinet

6. Cabinet approves bill to be tabled in bunge.

7. Minister tables bill in bunge

8. Bill to be voted for bunge

9. Bill to be signed by prezzo.

10. Bill to be gazetted for operalization.

11. Implementation task force to be created by 'line ministry'.



Finally then 'owning land to be costly' becomes reality



Now,anywhere here vested interests can stop or slow down this process almost indefinitely. So don't hold your breath. Plus all this processes take time,add in 2012 election and you can forget about it.


itz
#3 Posted : Wednesday, November 04, 2009 2:51:00 AM
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Joined: 3/20/2009
Posts: 348
@mwana.i do agree with you and i know it won't happen in the near future.but its a good start and the fact there is discussion about it; is very positive.
mwana
#4 Posted : Wednesday, November 04, 2009 5:32:00 AM
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Joined: 6/4/2007
Posts: 35
Start,a 'good start'?! I beg to differ.

Maybe you are young.

They have been talking about this from the days Kibaki was chairman of DP and Matiba was fighting with shikuku for Ford-Asili control.



mukiha
#5 Posted : Wednesday, November 04, 2009 5:58:00 AM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
What is the definition of 'Idle Land'?

In my view,ALL land should be heavily taxed. That way,anyone owning land will feel the pressure to make use of it or sell it......

If it can't pay back enough to cover the taxes,it becomes a liability and soon enough you have to do something on it.

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
mukiha
#6 Posted : Wednesday, November 04, 2009 6:02:00 AM
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Joined: 6/27/2008
Posts: 4,114
I'd propose sh10,000 per acre per month for parcels of one acre or smaller

And sh20,000 per acre per month for parcels larger than one acre

What do you think?

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
wangura
#7 Posted : Wednesday, November 04, 2009 6:41:00 AM
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Joined: 2/24/2009
Posts: 29
If i have 5,000 acres of idle land and to avoid being taxed declare it as a ranch and keep 2 (two!) cows,shall it be recognised as land under utilisation since it is no longer idle? Just wondering...
gift
#8 Posted : Wednesday, November 04, 2009 6:49:00 AM
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Joined: 10/8/2009
Posts: 39
Ownership of idle land has been debated upon eras ago. It is even contained in Sessional paper No. 10. (Cost less than 100 at the govt press) . In kenya today,land is an economic good whose allocation and access is primarily guided by market mechanisms.

Do you think there is any way out to make it a social commodity to which every Kenyan is entitled as a basic need ?


Truly Unique!
FundamentAli
#9 Posted : Wednesday, November 04, 2009 8:06:00 AM
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Joined: 11/4/2008
Posts: 1,289
Location: Nairobi
Before the government moves ahead with such a misadviced bill,they should first agree on the land use policy. If you discourage people owning big chunks of land,then it means you have to allow the uneconomical subdivison of land which will filled up within twenty years by the fast breeding kenyans. I think our focus in Kenya is too much on who owns it instead of how do we best utilise the land for economic activity,food security etc while still taking into consideration the environment. Ownership of land is not permanent. The squatters in the coast region who were given title deeds sold their land and went to squat in other areas. Agriculture is also one of the less profitable industries. Will the government intervene where farmers incurr huge losses? The obligation has to be two ways.

The other issue is which land is this we are talking about. This bill might only be targeting the arable land which might account for less than 5% of the total land in Kenya. No one has an issue with land ownership in the arid and semi-arid region of the country which comprise 80% of the land.

Kenyans save by buying plots. Those plots form part of our parents retirements schemes as they do not have an alternative. Land is also used as collateral and the banks may not be willing to lend the farmers money on the strength of the value of their land.

A totally misguided policy if you ask me.



Baada ya dhiki,faaraja
Mainat
#10 Posted : Wednesday, November 04, 2009 8:36:00 AM
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Joined: 11/21/2006
Posts: 1,590
The policy would be idiocy on several levels:


Its an additional tax on land ownership. Note in Kenya,we've at best 4 main avenues of investment-bonds,shares,land and houses. So far,it seems to me that only the last 2 attract any tax.
Implementation will be difficult. So if I buy a plot in Muthaiga but don't have the money to build on straight away,I'd for example have two chicken coops or maybe plant hay for resale to avoid paying idle tax. How does that help that neighbourhood?
It avoids the critical issue on land policy. Corruption. Kenyatta with his policy of 'kau ni ka wira wa muthuri' went to his expensive grave owning 500k hectares of prime Kenyan land. The idiot who succeeded him took almost as much. And ofcourse,now almost everybody in the grand coalation has land they got by foul means. Why don't we start the land policy there?
Land usage has to be location based. So if you own land in Nyeri (which has a lot of arable land),this policy make sense. In Nai,it doesn't.


www.mjengakenya.blogspot.com
Sehemu ndio nyumba
Djinn
#11 Posted : Wednesday, November 04, 2009 10:26:00 AM
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Joined: 11/13/2008
Posts: 1,565
@all - thanks for your very astute observations and remarks - if only you guys were the task force itself - the bill would be in parliament tomorrow afternoon....and if you were MPs (plus another 200),we'd have a suitable law governing arable,residential and commercial land,with requisite taxation guidelines.....and we'd have 1000k hectares within reach of wanjiku (onyango,khamisi and wafula)...thus removing the thorn from Kenya's bleeding heart and ensuring a very equitable post 2012 era in which agriculture thrives,people subsist and become less of a burden to the government...of course,in reality,this will fuel debate and work its way to the front page from the back...another red herring while Ocampo is in town - perhaps window dressing (to show reforms are underway)...

The problem with equality is that we desire that it be with those that have more than us rather that those that have less
mukiha
#12 Posted : Wednesday, November 04, 2009 11:00:00 AM
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Joined: 6/27/2008
Posts: 4,114
@Mainat & FundametAli;

This is why I suggest we tax ALL land,used or unused. It is very difficult to define what is idle and what is utilised. A flat rate per acre solves that problem.

And,by the way,we already have the law in operation; only that the [land] Rates are so ridiculously small that anyone can buy a parcel and keep it for 20 yrs without feeling the pinch.

Think about it; I pay only sh1,400 per year for my house in Nairobi. And if the land was not developed [i.e. if the house was not there],the rate would be much lower.

Come to think about it,the current state of affairs taxes utilised land and spares that which is idle. In other words,we discourage people from developing their land! Ridiculous,isn't it?

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
bwenyenye
#13 Posted : Wednesday, November 04, 2009 1:20:00 PM
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Joined: 5/24/2007
Posts: 1,805
@mukiha

How does impasing heavy taxes on all land help solve the problem. It would only ensure that only the super rich own land in Kenya. How? because 99.99% would default at one time or another and the government would reposses and sell to thos e who can afford! I think that the governement should look at it this way. Have a policy whereby


They uproot all coffee and tea and plant maize and beans ( This will feed Kenya)
Subdivide the country ( especially rural areas) into batches of 200K ha. Move all the people into a small town with all amenities then give them shares to a company that owns the land relative to the acreage each has given up. The company then runs the huge farms employing the shareholders and mechanises all operations. The guys get paid dividend at the end of the year. This will tame rural- urban migration as citites will be everywhere
Lock all physics professors in this country in a room and demand the do not leave until they produce a solar driven vehicle and ensure that all trains are electric ( this reduces our reliance on oil which we do not have)
Maintain a federal system of government where the mayor of each town runs his shop and have a ceremonial central government

No wonder I am not in politics!
I Think Therefore I Am
FundamentAli
#14 Posted : Wednesday, November 04, 2009 1:35:00 PM
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Joined: 11/4/2008
Posts: 1,289
Location: Nairobi
@Mukiha

Any blanket tax on land will mean an increase in the cost of production of food hence putting kenya in a comparative disadvantage. This cost will have to be recovered at some point.

@Djinn,

You can only solve Wanjiku and Wafulas problem temporarily. Do not even try. You will be encountering bigger problems from them in future



Baada ya dhiki,faaraja
mukiha
#15 Posted : Wednesday, November 04, 2009 1:58:00 PM
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Joined: 6/27/2008
Posts: 4,114
@bwenyenye & FundametAli;

Now I change my mind....

Let's not tax land at all

In fact,what is the purpose of the land rent collected by the Ministry of Lands? At least local councils PRETEND that the Rates they collect are to be used in service provision...

And by the way,what is wrong with having idle land?

Or idle [other] property...e.g.,check any woman's wardrobe and you will see a lot of idle property.....clothes that have never been worn since they were bought six and a half years ago......what wrong with that?

I think this idea to tax idle land arises from jealousy.

People see you with a large piece of land that you are not using and the want to invent a [legal] way of taking it away from you...wivu mtupu!!!!.

And who said that you need land to become economically independent? How much land has Singapore? How much of their food do they grow on their God-forsaken island?

@bwenyenye,I agree with you,we have to think without the box!

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Kirethi
#16 Posted : Wednesday, November 04, 2009 2:21:00 PM
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Joined: 10/6/2008
Posts: 21
Before introducing this tax all the councils beginning with Nairobi should be required to be publishing annually /semiannually what they have done with all the landrates collected so far.

For average kenyans saving up to buy even an 1/8 of an acre is a hustle so one can imagine developing it is another two to three years.

More taxation does not bring about efficiency nor encourage development,countries that have lowest levels of taxes attract more investment.

So this policy on any more taxes be it idle/useful land is ill advised and not geared towards development/growth of our economy.


Watu wachangamuke
half_empty
#17 Posted : Wednesday, November 04, 2009 2:41:00 PM
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Joined: 3/23/2007
Posts: 127
another good policy that may never see the light of day...and lets not get mixed up... revenue collection is a good thing... government spending is a whole other subject
tony stark
#18 Posted : Wednesday, November 04, 2009 5:47:00 PM
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Joined: 7/8/2008
Posts: 947
I honestly think it is a good nay a great idea that they are introducing. The problem of owning land and not utilising it is the only way you can make profit from the land is through speculation. What happens is that land will be bought out horded by a few individuals and once demand climbs the sell it in smaller portions for a ridiculously high amount of money!!
I think land that was meant to be agricultural land should stay that way! We are running out of fertile lands and once the large scale farmers become speculators selling plots all over kiambu and thika what will people eat.
We should also tax people who go about splitting agricultural land even higher!! Our subsistence farming is not a viable method of feeding this country because our population is about to hit 40+ million and will continue to grow exponentially. Subsitence farming will not be sustainable!!!

SK A.L.U.M.N.I (Alcoholic Liason and Undergarments Manager of Nakedness Internationally)
tony stark
#19 Posted : Wednesday, November 04, 2009 5:52:00 PM
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Joined: 7/8/2008
Posts: 947
In as much as we have thick MPigs i think the technocrats in most of these ministries are forward thinking.
Fertile land should be consolidated and people who want to farm as a profession should be given a chance. Zimbabwe was a great example of commercial farming and those farmers later moved to zambia malawi and these countries are now becoming self sufficient and even exporting food to the former bread basket of Africa.

@ Muhika ..... Idle land is a big crime. Especially so in a country that is always ravaged by drought.

SK A.L.U.M.N.I (Alcoholic Liason and Undergarments Manager of Nakedness Internationally)
itz
#20 Posted : Wednesday, November 04, 2009 8:17:00 PM
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Joined: 3/20/2009
Posts: 348
Great discussion going on herefolks.For those who are opposed to such an initiative to tax land,i hope you realize in the next few years with current trends you will be priced out of land/home ownership because of land speculators.i am a capitalist but capitalism also needs regulation otherwise animal spirits run wild and the aftermath could be terrible.Ofcourse i would not support a policy that makes land ownership almost punitive but one that would discourage pure speculative intentions of owning land.Also taxation would be divided into land use(residential,commercial,agricultural) and location(as we develop new cities and would be at different rates.
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