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Land Tenure and Property Rights in the Agricultural Areas of Kenya:
Economic, Environmental and Social Impacts
“……There is a fundamental connection between secure property rights, freedom and prosperity. Be it property rights to one's self (human capital), to one's investments in land and property (physical capital) or to one's ideas (intellectual capital), secure claims to assets give people the ability to make their own decisions, reaping the benefits of good choices and bearing the costs of bad ones. Without property rights, no other rights are possible…..”
Mike Norton-GriffithsSenior Research FellowODDG/ICRAF
Commercial Leasehold
Large commercial farms, typically with 999 year lease, under the Registration of Titles Act (Cap. 281) 1920
Adjudicated Land
Adjudicated under the Land Adjudication Act CAP 284 1968, intensive smallholder cultivation with clear freehold title
Unadjudicated Land
Unadjudicated land, no firm legal title
Economic Impacts
Major Tenure Types in theAgricultural Lands of Kenya
% Land(*)
% Rural Population
% Net Agricultural
Returns
Leasehold 21 15 32
Freehold 44 67 56
Unadjudicated 35 18 12
Note(*): % of non-Government Land
Agricultural Rents
net returns to land ($NRL)
$NRL = gross revenues – (direct & indirect costs)
as $ ha-1y-1
$ Net Returns to Land$ NRL ha-1 y-1
TenureoFreehold versus Unadjudicated
EnvironmentoElevationoTemperatureoRainfalloAvailable Soil Moisture
InfrastructureoDistance to all weather roads [ ….]o[Distance to principal town] [ …..]
Population 1989oDensityo[ growth rate ]
EffectCoefficient
$Standard
ErrorStd.
Coefficientt p-value
CONSTANT 112.008 11.075 0.000 10.113 0.000
Freehold tenure 90.372 15.408 0.310 5.865 0.000
Elevation and Temperature 16.125 3.304 0.086 4.881 0.000
Freehold tenure * Elevation and Temperature 72.952 5.168 0.251 14.117 0.000
Rainfall and Soil Moisture 31.162 3.551 0.225 8.776 0.000
Freehold tenure * Rainfall and Soil Moisture 2.607 5.116 0.012 0.510 0.610
Distance (km) to all weather roads 0.836 0.197 0.072 4.239 0.000
Freehold tenure * Distance (km) to all weather roads 0.943 0.349 0.055 2.703 0.007
1989 Population (per km2) 0.367 0.094 0.425 3.909 0.000
Freehold tenure * 1989 Population (per km2) 0.283 0.102 0.351 2.770 0.006
EffectCoefficient
$Standard
ErrorStd.
Coefficientt p-value
CONSTANT 112.008 11.075 0.000 10.113 0.000
Freehold tenure 90.372 15.408 0.310 5.865 0.000
Elevation and Temperature 16.125 3.304 0.086 4.881 0.000
Freehold tenure * Elevation and Temperature 72.952 5.168 0.251 14.117 0.000
Rainfall and Soil Moisture 31.162 3.551 0.225 8.776 0.000
Freehold tenure * Rainfall and Soil Moisture 2.607 5.116 0.012 0.510 0.610
Distance (km) to all weather roads 0.836 0.197 0.072 4.239 0.000
Freehold tenure * Distance (km) to all weather roads 0.943 0.349 0.055 2.703 0.007
1989 Population (per km2) 0.367 0.094 0.425 3.909 0.000
Freehold tenure * 1989 Population (per km2) 0.283 0.102 0.351 2.770 0.006
EffectCoefficient
$Standard
ErrorStd.
Coefficientt p-value
CONSTANT 112.008 11.075 0.000 10.113 0.000
Freehold tenure 90.372 15.408 0.310 5.865 0.000
Elevation and Temperature 16.125 3.304 0.086 4.881 0.000
Freehold tenure * Elevation and Temperature 72.952 5.168 0.251 14.117 0.000
Rainfall and Soil Moisture 31.162 3.551 0.225 8.776 0.000
Freehold tenure * Rainfall and Soil Moisture 2.607 5.116 0.012 0.510 0.610
Distance (km) to all weather roads 0.836 0.197 0.072 4.239 0.000
Freehold tenure * Distance (km) to all weather roads
0.943 0.349 0.055 2.703 0.007
1989 Population (per km2) 0.367 0.094 0.425 3.909 0.000
Freehold tenure * 1989 Population (per km2) 0.283 0.102 0.351 2.770 0.006
EffectCoefficient
$Standard
ErrorStd.
Coefficientt p-value
CONSTANT 112.008 11.075 0.000 10.113 0.000
Freehold tenure 90.372 15.408 0.310 5.865 0.000
Elevation and Temperature 16.125 3.304 0.086 4.881 0.000
Freehold tenure * Elevation and Temperature 72.952 5.168 0.251 14.117 0.000
Rainfall and Soil Moisture 31.162 3.551 0.225 8.776 0.000
Freehold tenure * Rainfall and Soil Moisture 2.607 5.116 0.012 0.510 0.610
Distance (km) to all weather roads 0.836 0.197 0.072 4.239 0.000
Freehold tenure * Distance (km) to all weather roads 0.943 0.349 0.055 2.703 0.007
1989 Population (per km2) 0.367 0.094 0.425 3.909 0.000
Freehold tenure * 1989 Population (per km2) 0.283 0.102 0.351 2.770 0.006
Tenure Effect(Freehold versus Unadjudicated)
Dummy Freehold Tenure = 0 $NRL = $126
Dummy Freehold Tenure = 1 $NRL = $288
TENURE EFFECT (aebe) 2.28
Environmental Impacts
Tenure and Investment in Woody Vegetation
Machakos District; % Land with Erosion Control(terracing, bunds, contour ploughing or tied ridging)
Social Impacts
EffectCoefficient
$Standard
ErrorStd.
Coefficientt p-value
CONSTANT 112.008 11.075 0.000 10.113 0.000
Freehold tenure 90.372 15.408 0.310 5.865 0.000
Elevation and Temperature 16.125 3.304 0.086 4.881 0.000
Freehold tenure * Elevation and Temperature 72.952 5.168 0.251 14.117 0.000
Rainfall and Soil Moisture 31.162 3.551 0.225 8.776 0.000
Freehold tenure * Rainfall and Soil Moisture 2.607 5.116 0.012 0.510 0.610
Distance (km) to all weather roads 0.836 0.197 0.072 4.239 0.000
Freehold tenure * Distance (km) to all weather roads 0.943 0.349 0.055 2.703 0.007
1989 Population (per km2) 0.367 0.094 0.425 3.909 0.000
Freehold tenure * 1989 Population (per km2) 0.283 0.102 0.351 2.770 0.006
Embedded Land Tenure -5.564 1.762 -0.089 -3.157 0.002
Freehold tenure * Embedded Land Tenure 7.837 1.818 0.185 4.311 0.000
Embedded Land Tenure * 1989 Population (per km2)
0.034 0.018 0.282 1.909 0.056
Freehold tenure * Embedded Land Tenure * 1989Population (per km2)
0.009 0.019 0.079 0.485 0.628
Economic, Environmental and Social Impacts
Unadjud Freehold Tenure Effect
Net returns to land ($ ha-1 y-1) $126 $288 2.28 Woody crops, woodlots etc (ha km-2) 5.4 25.6 4.7 Hedgerows (km km-2) 5.2 23.6 4.5 Social cost from embedding -$40 $30 $70 Social "tax" -32% +10%
Lessons to be Learned?
1. Strengthening tenure and property rights is possibly the single most effective intervention to address rural poverty.
Lessons to be Learned?
1. Strengthening tenure and property rights is possibly the single most effective intervention to address rural poverty.
2. This is not to say that people with private, freehold tenure will never be poor – only that they would be even poorer without private tenure.
Lessons to be Learned?
1. Strengthening tenure and property rights is possibly the single most effective intervention to address rural poverty.
2. This is not to say that people with private, freehold tenure will never be poor – only that they would be even poorer without private tenure
3. BUT, private tenure and strong property rights are not a panacea on their own – they require a free market economy flourish.