Lease and licence administration by a public corporation in Kenya: the case of Kenya railways corporation

Abstract

This thesis investigates the problems inherent in the landlord and tenant relationship that arise once land has been leased or a licence issued. It focuses on public administration of land because large tracts of land in Kenya, especially in the urban areas, are held on public leaseholds. To maximise the benefits of the leasehold system, it is necessary that the leases and licenses are administered to their best advantage. The administration of land through the use of leases and licenses allows a landlord to retain control of his land even as he gives up physical possession. The terms and conditions of the lease and license agreements are used by the landlord to maintain this control during the term of the lease or license. Problems arise when the landlord or tenant breach the terms or conditions of the lease or license. This thesis investigates the causes of the breaches of the lease and license agreement, with the Kenya Railways Corporation with the case study. It begins by examining the institutional arrangements for lease administration as provided for by the Corporation with the aim of assessing their adequacy. The study then proceeds to examine the,clauses of the agreements most commonly breached and the remedial action taken. To provide an alternate view point the tenants were also interviewed. The study is divided into five chapters. The first chapter comprises the introductory section covering the problem statement, the study hypothesis, the study objectives, the scope of the study and research methodology. The second chapter reviews literature on leases and licences, and their administration by public institutions in general. Chapter three discuss the historical development of the Kenya Railways Corporation real estate and the type of leases and licenses administered. The study findings are recorded in Chapter Four. The study found that the problems arising during lease and licence administration are not caused entirely by the Estate Manager. Insufficient staff, inadequate equipment and transport facilities have contributed to inefficiency, poor record keeping and min~mum supervision. Confusion arising from two departments demanding and collecting rents has resulted in rental arrears. The Estate Manager was also not always able to execute remedial action as this was left to other Departments, for instance physically evicting troublesome tenants or pursuing legal redress. As a result tenants did not take seriously threats of remedial action. Finally in chapter five the study conclusions and recommendations are given. It is recommended that the institutional set up for land administration by the Kenya Railways Corporation be reconstructed with the department becoming fully operational. It further recommends stronger, clearly defined inter-departmental linkages between all the departments dealing with land.