THE LAND TITLE ACCESS FINANCING INITIATIVE (LAFI)
Buganda Land Board (BLB) is an organization set up by the Kabaka of Buganda to manage land and properties returned under the Restitution of Traditional Rulers Act of 1993. This comprised of 350sq miles of land spread all over Buganda Kingdom and other properties as outlined in the schedule of the Traditional Restitution of Assets and Properties’ Act Cap. 247.
Buganda Land Board in administering Buganda Kingdom land and estates interfaces with tenants on Kabaka’s land on matters of security of tenure.
Buganda Land Board has come up with a scheme aimed at facilitating bibanja occupants acquire lease titles on Kabaka’s land.
2.0 The Initiative –”FUNA EKYAPA”
The foundation of this initiative is the inability to acquire title attributed to financial constraints yet a title remains the only means towards security of tenure.
The scheme will be managed through a partnership involving Buganda Land Board, Banks/financial institutions and the kibanja occupants on Kabaka’s land.
2.2 Target group.
Medium income earners (self-employed entrepreneurs or salary earners)
3.0 Benefits to the parties involved:
Buganda Land Board
- A wider client base of Title holders on Kabaka’s land.
- Proper planning through regulated development on Kabaka’s land.
- Increased revenue generation due to a wide client’s base
The Bank/Financing institutions
- Wide client’s base as more accounts will be opened.
- Customer retention will be on the increase.
- Increased number of loan applicants with meaningful collateral.
- Improve the banks interface with clients.
- A good working relationship with Kabaka and financial institutions.
Tenants on Kabaka’s
- Will have secured tenancy.
- Will use the titles as collateral in case of loan acquisition.
- Secure the future of their off springs and beneficiaries
4.0 Mode of Operation
The scheme operates through Buganda Land Board (BLB) where applications forms and registration is done. BLB on assessment forwards to the bank qualified applicants in order for the bank to make informed decisions.
The Financial institution remits to BLB funds meant to facilitate the processing of the title. BLB forwards the title to financial institution as collateral and encumbrances shall be registered on the title.
4.1 Target Areas
Bibanja holders in urban and peri-urban areas are so far targeted. Such areas include;
Katwe, Kibuye, Makindye,Luwafu, Lukuli, Katuuso, Konge, Buziga, Kyamula,
Najjanakumbi,Kabowa,,Naziba, Nakulabye, Kasubi.
Nyanama, Namasuba, Namungoona, Nansana, Kazo, Lubya, Ndejje, Masooli, Kasangati, Masajja, Kibiri, Gangu, Bwaise, Maganjo, Kawempe, Kagoma, Njeru T/C.
5.0 Obligations of the parties:
Buganda Land Board
- Ascertaining the applicants’ ownership of kibanja.
- Processing applicant’s information and forwarding to the Bank/financing institution.
- Provide a valuation estimate for the prospective client’s kibanja.
- Provide lease offer and there after a lease hold title.
- Presenting to the Bank the client’s title as collateral.
- Upon approval of customer’s loan, the Bank advances all dues outstanding as per the lease offer.
- The Bank holds all securities offered by the customer up-to when the customer clears loan.
- The Bank ascertains the client’s kibanja status; whether or not it has ever been mortgaged in any financial institution.
- Will upon recovery of the loan provide the land title or any other securities that were used as collateral.
Occupant on Kabaka’s land
The kibanja occupant will provide all information required to fulfill BLB tenancy registration requirements. They will also:
- Be in possession of an account with the Bank/financial institution offering the loan.
- Consent to advancing a fixed amount up to 30% of estimated amount to BLB for surveying and valuation purposes.
- Be in possession of a steady income for loan repayment support.