Kenya's Succession Laws: A Business Opportunity in Flux
The potential reform of Kenya's succession laws, driven in part by a former governor's proposal, could unlock millions of dollars in assets tied up in real estate and other property, creating a significant business opportunity for developers, financial institutions, and other investors. According to the former governor, the current laws are a major obstacle to economic development, leading to a significant amount of wealth being tied up in property that is difficult or impossible to access.
Historically, Kenyan property laws have favored the interests of the deceased's family, often at the expense of the wider economy. This has led to a phenomenon known as "dead asset syndrome," where property is left to sit vacant for years, unable to be sold or developed due to family disputes or other obstacles. The reform proposal aims to address this issue by introducing a more flexible and efficient system for dealing with inherited property.
The real estate sector is likely to be one of the biggest beneficiaries of any reform. With an estimated 30% of Kenyan property currently tied up in inheritance disputes, the potential for development and investment is vast. Companies such as Kenyatta University and other institutions that own large tracts of land could see significant benefits from the reform, as would developers and property investors.
The banking sector is also likely to be impacted, as many financial institutions have large portfolios of assets tied up in property that is currently not being utilized due to inheritance disputes. The reform could lead to a significant increase in lending and investment in the real estate sector, as banks and other financial institutions seek to capitalize on the new opportunities.
It is estimated that approximately 10% of Kenya's GDP is tied up in assets that are currently not being utilized due to inheritance disputes. This represents a significant opportunity for businesses and investors looking to capitalize on the reform. However, it is worth noting that the exact impact of the reform will depend on the specifics of the new laws, which have yet to be finalized.
As the reform proposal makes its way through Parliament, businesses and investors in Kenya should be keeping a close eye on developments. With the potential for significant growth and investment in the real estate sector, this is an opportunity that should not be missed
