Accounting for the Subdivision and Distribution of Land by Limited Liability Companies in Kenya

Abstract

This study attempts to provide a conceptual insight into the various accounting/legal problems and complications that arise in the subdivision and distribution of land to the shareholders by limited liability companies in Kenya. The highlighting of the various accounting and legal problems apart, the study also attempt's to provide prescriptive accounting treatments to the various problematic land subdivision and distribution circumstances. The paper starts by providing a chronological account of the various historical as well as cultural factors that necessitated the formation of most of the limited liability companies that have been concerned with the land subdivision and distribution exercise. The paper points out that the colonial alienation of the African lands to the Europeans which caused a landless African class in Kenya coupled with the African respect for societal land ownership, all together with the colonial influence of individualization of land ownership have been largely responsible for the formation of these companies.