An Italian investor in Watamu, Kilifi county, has welcomed the Lands Cabinet secretary’s plan to investigate illegally owned freehold title deeds by foreigners.
Jacaranda Beach Resort chairman Pasquale Tirito said the process must be fair, noting some foreigners obtained title deeds before the 2010 Constitution.
On May 26 during an inspection tour of the Mombasa lands registry, Lands CS Zachariah Njeru raised concerns about foreigners owning freehold title deeds, which is now illegal.
Tirito explained that the Constitution requires freehold titles held by foreigners to be converted to leasehold to be regularised.
However, many investors argue land acquired before the 2010 Constitution remains legitimately freehold.
“It appears that all freehold land must be regularised regardless of when it was transferred. I support this, as it will finally clarify a controversial issue,” Tirito said.
He welcomed the plan to regulate title deeds in the coastal region, provided it doesn’t unfairly punish investors who bought land before 2010 based on legal advice at the time.
Tirito stressed the need for reasonable time and government assistance to correct irregularities.
Owning several tourism resorts in Watamu, he urged the government to differentiate between private holiday homeowners and those who have invested significantly in the tourism sector.
“Tourism investors need security for their investments, which includes not just the purchase price but also construction, international contracts and environmental care,” Tirito said.
He warned that land disputes could jeopardise investments that provide jobs for thousands of families.
Tirito suggested Kenya establishes an office similar to Zanzibar Investment Promotion Authority (Zipa) to assist investors in complying with local laws, noting the inconsistency in legal advice and the backlog in Kenyan courts over land disputes.
He also urged the government, particularly the Ministry of Tourism, county governments and the Kenya Revenue Authority, to address the issue of unlicensed holiday homes operating as tourism businesses.
“In the Watamu-Malindi area alone, hundreds of private properties rent to tourists without licenses, insurance, safety requirements or paying taxes,” he said.
These properties conduct financial transactions online, with payments made abroad, depriving Kenya of significant tax revenue.
Tirito said such illegitimate businesses create unfair competition and divert substantial resources from the country.
He urged the government and the Tourism Regulatory Authority to enforce laws to prevent such practices.
