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    Valuation of Unregistered Lands

    RICS RESEARCH

    Report February 2013

  • Valuation of Unregistered Lands

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    rics.org/research

    RICS Research team

    Dr. Clare Eriksson FRICS Director of Global Research & Policy ceriksson@rics.org

    James Rowlands Global Research & Policy Project Manager jrowlands@rics.org

    Amanprit Johal Global Research & Policy Project Officer ajohal@rics.org

    Auriel Fielder Global Research Co-ordinator afielder@rics.org

    Published by:

    RICS, Parliament Square, London SW1P 3AD United Kingdom

    Funded by:

    The RICS Research Trust

    The RICS Research Trust, a registered charity established by RICS in 1955 to support research and education in the field of surveying.

    UN-Habitat

    The views expressed by the author(s) are not necessarily those of RICS nor any body connected with RICS. Neither the authors, nor RICS accept any liability arising from the use of this publication.

    Copyright RICS 2013

    Front cover image: Kibera, Nairobi – informal settlement area (John Tracey-White)

    A report commissioned by RICS and supported by RICS Research Trust and the UN Habitat Global Land Tool Network

    Report written by:

    Nicky Nzioki Principal Researcher, University of Nairobi creumhs@gmail.com

    Dr. Muhammad A. Swazuri Principal Researcher, Mombasa Polytechnic University College maswazuri@gmail.com

    John Tracey-White FRICS Editor/Research Supervisor, RICS Sustainability UK Jtracey-white@rics.org

    Professor Saad Yahya FRICS PhD Former Chair RICS Kenya, Editor & Peer Reviewer sya@nbi.ispkenya.com

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    s Executive Summary ............................................................................................................................................06 Background to the Study ..................................................................................................................................................06

    Study Methodology: Literature Review, and Field Surveys .................................................................................................06

    Findings, Conclusions and Follow-up ................................................................................................................................07

    1.0 Introduction ...............................................................................................................................................08 1.1 Study Purpose .....................................................................................................................................................08

    1.2 Specific challenges to be addressed ....................................................................................................................08

    1.3 Comparable situations to the research study ........................................................................................................09

    1.4 Goals and objectives ............................................................................................................................................09

    1.5 Data and information issues ................................................................................................................................09

    1.6 Target beneficiaries ..............................................................................................................................................10

    2.0 Literature Review on Land Valuation Methods ...............................................................11 2.1 The Concept of Value ...........................................................................................................................................11

    2.2 Price, Cost, and Value ..........................................................................................................................................11

    2.3 Types of Value .....................................................................................................................................................12

    2.4 Basis of Value.......................................................................................................................................................12

    2.5 Valuation Methods ...............................................................................................................................................13

    3.0 The Valuation of Natural Resources ........................................................................................14 3.1 Overview ..............................................................................................................................................................14

    3.2 Methods used in Natural Resources Valuation ......................................................................................................14

    3.3 Summary Assessment of Valuation Methods ........................................................................................................16

    4.0 What are Unregistered Lands? ...................................................................................................17 4.1 Security of Tenure ................................................................................................................................................17

    4.2 Forms of Tenure ...................................................................................................................................................18

    4.3 Perceptions of Entitlements ..................................................................................................................................21

    5.0 Culture, Custom and Other Intangibles ...............................................................................24 5.1 Overview of Kenyan Practice ................................................................................................................................24

    5.2 Customary Land Tenure .......................................................................................................................................25

    5.3 Heritage assets ....................................................................................................................................................25

    6.0 Survey Methodology and Results ............................................................................................26 6.1 Overall Survey Scope and Approach to Field Surveys ..........................................................................................26

    6.2 Results of Full Survey: Occupants and Land Owners ...........................................................................................28

    6.3 Results of Full Survey: Views of Valuation Surveyors.............................................................................................31

    6.4 Mombasa Case Study ........................................................................................................................................34

    6.5 Mombasa Roundtable Workshop ........................................................................................................................35

    7.0 Survey Findings and the Way Forward .................................................................................36 7.1 Findings ...............................................................................................................................................................36

    7.2 Conclusions and the Way Forward .......................................................................................................................37

    8.0 List of References and Information Sources ....................................................................38

    RICS Research – Valuation of Unregistered Lands

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    rics.org/research

    Appendices Appendix A: Valuation Methods.........................................................................................................................................41

    Appendix B: Field Questionnaires for Valuation of Unregistered Lands in Kenya ................................................................47

    List of Tables Table 1: Survey Framework ...............................................................................................................................................26

    Table 2: Type of Land Ownership ......................................................................................................................................28

    Table 3: Proof of ownership ...............................................................................................................................................28

    Table 4: How Land was obtained ......................................................................................................................................29

    Table 5: Considered Factors Contributing to Values of Land ..............................................................................................30

    Table 6: Factors affecting Values .....................