A Real Property Register to Support the Property and Credit Market in Uganda Lilian Mono Wabineno Oryema
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A Real Property Register to Support the Property and Credit Market in Uganda Lilian Mono Wabineno Oryema Doctoral Thesis in Real Estate Planning and Land Law Real Estate Planning and Land Law Department of Real Estate and Construction Management School of Architecture and the Built Environment Royal Institute of Technology (KTH) Stockholm, Sweden, 2016 Supervisors: Associate Prof. Peter Ekbäck: Royal Institute of Technology (KTH) Prof. Hans Mattsson: Royal Institute of Technology (KTH) Dr. Moses Musinguzi: Makerere University Dr. Eva Liedholm Johnson: Royal Institute of Technology (KTH) Academic Dissertation for the Degree of Doctor of Technology Author: Lilian Mono Wabineno Oryema Title: A real Property Register to Support the Property and Credit Market in Uganda ISBN 978‐91‐85783‐63‐2 TRITA‐FOB‐DT‐2016:2 © Lilian Mono Wabineno Oryema Real Estate Planning and Land Law Department of Real Estate and Construction Management School of Architecture and Built Environment Royal Institute of Technology (KTH) SE‐100 44 Stockholm Sweden ii ABSTRACT An efficient property and credit market can be used by a government of a country to empower its citizens to achieve sustainable development. To improve the property and credit market government needs to ensure that its land records contain information that is beneficial to the actors in both the property and credit market. Studies have shown that land records in Uganda experience problems which have affected the property and credit market. The Government of Uganda has had attempts to solve these problems and one of the recent efforts include computerization of the land records. However the aspect of the information content and its adequacy for the property and credit markets has not attracted much attention. Therefore this research investigated the content of the real property register in relation to the requirement of the property and credit market in Uganda. The main aim of the research was to develop a model of a real property register that supports both the property and credit market in Uganda. The research established the needs of the different actors in the property and credit market. Based on the analysis of the needs of the property and credit market in Uganda, the gaps in the information provided by the current real property register were identified. The research methods included literature review, interviews, and questionnaires. Furthermore the registers were inspected at the different land offices. A conceptual model of a real property register was designed based on the information needs of actors and gaps in the current real property register. The study revealed that the basic information required by the property and credit market included information on size of the property, location, occupancy rights, easements, regulations among others. Although things such as location and size are there, easements, occupancy rights and public restrictions are not there. This has impacted negatively on the property and credit market by contributing to land speculation, insecure rights, high transaction costs, prolonged transactions, high information costs, principle agent problems, land grabbing, land conflicts among others. The study recommended that the current register should be remodelled to include the vital information such as easements, occupancy rights and public regulation that is needed by actors in the property and credit market. The register should be dynamic and create incentives to have people register the land. Keywords: Property rights, Real property register, Property market, Credit market, Uganda. iii SAMMANFATTNING Effektiva fastighets‐ och kreditmarknader kan användas av en regering i ett land för att stödja sina medborgare att uppnå en hållbar utveckling. För att förbättra fastighet‐ och kreditmarknaderna måste regeringen se till att landets fastighetsregister innehåller information som är till nytta för aktörerna i både fastighets‐ och kreditmarknaderna. Studier har visat att det befintliga fastighetsregistret i Uganda har brister som inverkar negativt på fastighets‐ och kreditmarknaderna. Ugandas regering har försök att lösa dessa problem och en av de senaste insatserna inkluderar digitalisering av fastighetsregistret. Däremot har frågan om registrets informationsinnehåll, och dess ändamålsenlighet för fastighets‐ och kreditmarknaderna, inte rönt någon större uppmärksamhet. Av dessa skäl har detta forskningsprojekt närmare undersökt informationsinnehållet i fastighetsregistret i relation till de behov som fastighets‐ och kreditmarknaderna i Uganda uppvisar. Det främsta syftet med forskningen var att utveckla en modell för ett fastighetsregister som kan gynna både fastighets‐ och kreditmarknaderna i Uganda. Forskningen inventerade inledningsvis behoven hos de olika aktörerna inom fastighets‐ och kreditmarknaderna. Baserat på en analys av dessa behov identifierades brister och svagheter i den information som tillhandahålls av det nuvarande fastighetsregistret. Forskningsmetoden innefattade litteraturstudier, intervjuer och enkäter. Därutöver granskades fastighetsregistret på plats vid olika registerförande kontor. En konceptuell modell av ett utvecklat fastighetsregister skapades utifrån de informationsbehov hos aktörerna och brister i nuvarande fastighetsregistret som identifierats. Studien visade att den grundläggande information som behövs för fastighets‐ och kreditmarknaderna innefattar bl.a. information om fastighetens area, lokalisering, olika rättigheter samt markanvändningsplaner. Information om area och lokalisering finns idag, men rättigheter och markanvändningsplaner saknas. Detta har inverkat negativt på fastighets‐ och kreditmarknaderna genom att bl.a. bidra till markspekulation, otrygga rättigheter, höga transaktions‐ och informations‐ kostnader, principal‐agent‐problem och markkonflikter. Studien rekommenderar att nuvarande registret bör utvecklas och struktureras för att kompletteras med viktig information såsom rättigheter och markanvändnings‐ regleringar vilket efterfrågas av marknadsaktörerna. Registret bör vidare vara dynamiskt och skapa incitament för att underlätta registrering av mark. Nyckelord: Rättigheter, Fastighetsregister, Fastighetsmarknad, Kreditmarknad, Uganda. iv ACKNOWLEDGEMENT Foremost, my thanks go out to God Almighty for enabling me successfully pass through this PhD journey which was full of both painful and joyful experiences. I would like to express my special appreciation and thanks to my supervisors, Assoc Prof Peter Ekbäck, Prof Hans Mattsson, Dr. Eva Liedholm Johnson of Division of Real Estate Planning and Land Law (KTH) and Dr. Moses Musinguzi of Department of Geomatics and Land Management (Makerere University) for your kindness, patience, encouragement, immense knowledge and for the continuous help, advice and support of my study and research. In the individual capacity of my supervisors, special thanks go out to Prof. Hans Mattsson who gave me a chance to be his student by helping me get registered at KTH and finding a direction for my PhD studies. For accepting to supervise me and making me appreciate and understand the field of Land Management during my master’s degree, I will forever be grateful. I kindly thank Assoc. Prof. Peter Ekbäck for accepting to become my supervisor from the start of the study. I also want to tell you that I am very grateful for the quick responses that you always offered me concerning my work and other issues regarding my study and stay at KTH. I would like to express my heartfelt gratitude to Dr. Musinguzi Moses, you have been a tremendous mentor to me. The good advice, support, motivation and friendship have been invaluable on both an academic and a personal level, for which I am extremely grateful. For everything you have done for me, I thank you and I could not have imagined having a better advisor and mentor for my PhD study. To Dr. Eva Liedholm Johnson, you have been an inspiration since my days of doing my master’s degree. You taught, advised and supervised me for my research work. You were there whenever I needed help. I will forever be grateful to you I want to thank Dr. Lydia Mazzi Kayondo, you are not only a dear friend but a person I look up to. Thank you for the patience, advice, information and support you always offered me during the studies and outside studies, I really appreciate. To the staff at the Department of Geomatics and Land Management especially Dr. Anthony Gidudu, Mr. Ronald Ssengendo, Mr. Brian Makabayi and Mr. Allan Mazimwe, I am extremely grateful for all the support you offered me to enable me complete my studies. v My fellow PhD student Kerbina Moyo, thank you for being such a good friend, officemate and housemate. You were a motivation and encouragement at all times and in every situation. You made our "readings and writings" during our stay in Sweden a daily event to look forward to. We have come a long way. May the good Lord bless you abundantly. A big “Thank you!” also goes out to everybody who participated in this study more so during the time of data collection. The time and effort you took off to take the interviews and respond to questionnaires are well appreciated. I also thank Chris Tembo Omoding, Mary Adweo, Ivan Bamweyana, Joseph Bukenya, Timothy Nigiwan, Berocan Samuel and Brenda Nakyeyune for all your efforts towards the completion of this piece of work. I kindly want to convey my gratitude to members of my doctoral committee at Makerere University; you gave me a sense of direction at our first meeting. Thank you for the guidance and effort you