JOINT SUBMISSION OF MEMORANDA ON THE BUSINESS LAWS (AMENDMENT) BILL

Urgent Recommendations on Amendments to Protect Marginalized Communities and Promote Equitable, Inclusive, and Sustainable Development

22nd April 2025

Clerk of the Senate

P.O. Box 41842-00100, Nairobi

[email protected]

Executive Summary:

This joint memorandum addresses critical concerns regarding proposed amendments to the Investment Promotion Act and the Land Act, arguing they risk exacerbating inequality and undermining the rights of marginalised communities. Our evidence-based recommendations urge retaining existing protections for vulnerable homeowners, enhancing transparency in investment approvals, and explicitly including measures for technology transfer and local capacity building. A robust monitoring and accountability framework with defined responsibilities and timelines is proposed for effective implementation. Addressing these points is crucial for an equitable, inclusive, and sustainable development agenda aligned with constitutional principles.

We, the undersigned organisations, submit this joint memorandum regarding the proposed amendments to the Investment Promotion Act and the Land Act. Our collective objective is to advocate for a legislative framework that firmly upholds the rights of women, the poor, and marginalised communities, ensuring equity and genuine inclusion in Kenya’s development agenda. The current draft amendments, if unrevised, risk exacerbating existing inequalities by weakening crucial safeguards and overlooking opportunities for sustainable local development.

Key Issues and Recommendations

1. Protection of Affordable Housing Mortgage Holders and Vulnerable Homeowners

Proposed reductions in mortgage default remedy timelines (90 to 45 days) and property sale notice periods (40 to 20 days) under the Land Act severely curtail vulnerable homeowners’ ability to seek redress, increasing their risk of homelessness, financial loss, and predatory lending. 

National Housing Corporation data indicates that approximately 65% of affordable housing beneficiaries face income fluctuations, and these reduced timelines could lead to a projected 30% increase in foreclosures, disproportionately affecting women-headed households (WIRE analysis, 2024). These amendments to Sections 90 and 96 contravene Articles 27 and 43(1)(b) of the Constitution.

Recommendation: Retain the original timelines (90 days for default remedy, 40 days for sale notice) in the Land Act and remove amendments to Sections 90 and 96 to ensure constitutional compliance and protect vulnerable homeowners’ rights. 

Monitoring and Accountability Framework:

  • Responsible Agency: Ministry of Lands and Housing, Judiciary, National Housing Corporation.
  • Monitoring Mechanisms: Regular reporting on foreclosure rates/timelines, analysis of related court cases, periodic impact assessments.
  • Timelines for Review: Biannual review of foreclosure data and vulnerability assessments; public reports to the Parliamentary Committee on Lands and Natural Resources.

2. Centralized Investment Approvals: Enhancing Transparency and Accessibility

While a digital-first platform is positive, transparency and public accessibility are paramount for equitable and inclusive development. As Mama Zawadi of Slum Dwellers International notes, access to information empowers communities to engage meaningfully.

Recommendation: Establish a publicly accessible online dashboard with real-time application tracking, officer action timestamps, geospatial project mapping, community feedback portals, and authenticated access for professionals to enhance transparency and efficiency.

Monitoring and Accountability Framework:

  • Responsible Agency: Ministry of Investment, Trade, and Industry, Information Communication Technology Authority (ICTA).
  • Monitoring Mechanisms: Regular audits of platform accessibility/usage, tracking of community feedback resolution, periodic user satisfaction surveys, and public reporting on application numbers, approval timelines, and community engagement.
  • Timelines for Review: Annual review of platform functionality and impact on transparency; public reports to the Parliamentary Committee on Finance and National Planning.

3. Technology Transfer and Local Capacity Building

The current amendments regrettably lack explicit provisions mandating or incentivizing technology transfer and skills development associated with foreign investment, which is crucial for empowering local communities and promoting sustainable development. Empirical evidence from Akiba Mashinani Trust’s (AMT) work in informal settlements reveals that foreign investments, particularly in infrastructure and housing, often proceed without adequate skills transfer to local populations. This limits opportunities for residents to gain technical expertise, secure better-paying jobs, and participate meaningfully in the long-term maintenance and management of these projects. Successful models in other developing nations demonstrate that prioritising skills transfer in investment agreements leads to greater local economic empowerment and project sustainability (source: AMT Community Needs Assessments, 2022-2024).

Recommendation: Incorporate mandatory frameworks for knowledge-sharing, mentorship, and technical training with measurable targets in the Investment Promotion Act, developed with relevant professional bodies.

Monitoring and Accountability Framework:

  • Responsible Agency: Ministry of Investment, Trade, and Industry, Ministry of Education, and relevant professional bodies.
  • Monitoring Mechanisms: Regular audits of investor compliance with transfer plans, tracking of program participation, assessment of impact on local skills/innovation via community surveys and project evaluations.
  • Timelines for Review: Biennial review of technology transfer effectiveness and incentive frameworks; public reports to the Parliamentary Committees on Trade/Industry/Cooperatives and Education/Research.

Conclusion

We urge the Senate to incorporate these evidence-based recommendations, including the monitoring frameworks, into the Business Laws (Amendment) Bill. Prioritizing the protection of vulnerable populations, enhancing investment transparency, and actively promoting/monitoring technology transfer is crucial for equitable and sustainable development aligned with constitutional principles. We welcome further engagement with relevant authorities to discuss these proposals and contribute to impactful legislative outcomes. Thank you for your consideration.

Signatories:


QS. Rachel Patience Mulondo|PresidentWomen in Real Estate (WIRE)
Arch. George A. Ndege| PresidentArchitectural Association of Kenya (AAK)


Jane Weru |Executive DirectorAkiba Mashinani Trust (AMT)
Joseph Kimani| Executive DirectorSlum Dwellers International (SDI)
Irungu Houghton | Executive DirectorAmnesty International Kenya

Contact for Follow-Up:Esther Wanjiku |Advocacy OfficerWomen in Real Estate (WIRE)[email protected]