Kenya Faces Extreme Land Inequality. Could Land Value Tax Help Curb Hoarding?

Nairobi — Kenya's most valuable resource -- land -- remains concentrated in the hands of a tiny elite, fueling inequality, food insecurity, and economic stagnation, a new Kenya Human Rights Commission (KHRC) report has warned.

The report, "Who Owns Kenya?", reveals that fewer than two per cent of Kenyans own more than half of all arable land.

A tiny 0.1 per cent of large-scale landholders control 39 per cent of agricultural land, while 98 per cent of smallholder farmers -- averaging just 1.2 hectares -- occupy only 46 per cent of farmed land.

KHRC warns that this extreme concentration depresses agricultural productivity, locks millions out of wealth-building opportunities, and exacerbates hunger.

Currently, 2.2 million Kenyans face acute food insecurity, with the country scoring 25 on the Global Hunger Index which is considered "serious."

In the Coast region, more than 65 percent of residents in Kilifi, Kwale, and Lamu counties lack formal land titles, leaving generations trapped as squatters on ancestral land.

The three counties consistently perform below the national average in health, education, and income.

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Negligible land taxes

KHRC noted land-based revenue remains negligible with land taxes contributing less than one per cent of revenue in most counties.

The commission noted the low revenue yield is worsened by outdated valuation rolls, political interference, and deliberate under-assessment of high-value properties in affluent areas such as Karen and Muthaiga in Nairobi, Diani in Kwale, and Mtwapa and Watamu in Kilifi.

To address this structural injustice, KHRC is urging the government to implement a progressive land value tax.

The commission noted that such a tax could curb land hoarding, stabilize land prices, encourage productive use, and raise up to Sh125 billion -- nearly double the country's current social protection budget.

"Kenya needs economic decisions that put people first, protect rights, and ensure fair distribution of national resources," said KHRC Executive Director Davis Malombe during the launch.

Read the original article on Capital FM.