The National Assembly's Departmental Committee on Lands has initiated a review of proposed amendments to the Land Act aimed at accelerating loan recovery timelines for affordable housing owners.
The bill, already passed by the Senate, seeks to reduce the period lenders must wait before enforcing loan defaults secured by affordable housing properties. Specifically, the statutory notice period would be cut from 90 to 45 days, and the notice before property sale from 40 to 20 days.
These changes are designed to create a more business-friendly environment and potentially encourage financial institutions to increase mortgage lending for affordable housing projects. However, concerns have been raised about the risk that homeowners may lose their properties prematurely without adequate time to resolve financial difficulties.
Key Amendments Proposed
- Loan enforcement notice period reduced from 90 to 45 days.
- Notice period before property sale shortened from 40 to 20 days.
- Changes apply exclusively to affordable housing units; standard timelines remain for other properties.
Committee chair Joash Nyamoko emphasized the need to balance investor confidence with protecting constitutional rights of borrowers. He noted that the committee will consult widely with stakeholders, including homeowners and the public, before making recommendations.
The government continues to promote affordable home ownership, with mortgage financing playing a crucial role in enabling Kenyans to acquire units developed under the Affordable Housing Programme.
