This document discusses land tenure and property rights in Kenya's agricultural areas and their economic, environmental, and social impacts. It finds that secure property rights through freehold tenure are connected to greater prosperity, investment, and agricultural returns compared to unadjudicated land with uncertain tenure. Strengthening tenure and property rights is identified as a key intervention for addressing rural poverty, though not a panacea on its own and requiring a free market economy.
6. Note (*) : % of non-Government Land 12 18 35 Unadjudicated 56 67 44 Freehold 32 15 21 Leasehold % Net Agricultural Returns % Rural Population % Land (*) Major Tenure Types in the Agricultural Lands of Kenya
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14. Agricultural Rents net returns to land ($NRL) $NRL = gross revenues – (direct & indirect costs) as $ ha -1 y -1
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16. 0.006 2.770 0.351 0.102 0.283 Freehold tenure * 1989 Population (per km2) 0.000 3.909 0.425 0.094 0.367 1989 Population (per km2) 0.007 2.703 0.055 0.349 0.943 Freehold tenure * Distance (km) to all weather roads 0.000 4.239 0.072 0.197 0.836 Distance (km) to all weather roads 0.610 0.510 0.012 5.116 2.607 Freehold tenure * Rainfall and Soil Moisture 0.000 8.776 0.225 3.551 31.162 Rainfall and Soil Moisture 0.000 14.117 0.251 5.168 72.952 Freehold tenure * Elevation and Temperature 0.000 4.881 0.086 3.304 16.125 Elevation and Temperature 0.000 5.865 0.310 15.408 90.372 Freehold tenure 0.000 10.113 0.000 11.075 112.008 CONSTANT p-value t Std. Coefficient Standard Error Coefficient $ Effect
17. 0.006 2.770 0.351 0.102 0.283 Freehold tenure * 1989 Population (per km2) 0.000 3.909 0.425 0.094 0.367 1989 Population (per km2) 0.007 2.703 0.055 0.349 0.943 Freehold tenure * Distance (km) to all weather roads 0.000 4.239 0.072 0.197 0.836 Distance (km) to all weather roads 0.610 0.510 0.012 5.116 2.607 Freehold tenure * Rainfall and Soil Moisture 0.000 8.776 0.225 3.551 31.162 Rainfall and Soil Moisture 0.000 14.117 0.251 5.168 72.952 Freehold tenure * Elevation and Temperature 0.000 4.881 0.086 3.304 16.125 Elevation and Temperature 0.000 5.865 0.310 15.408 90.372 Freehold tenure 0.000 10.113 0.000 11.075 112.008 CONSTANT p-value t Std. Coefficient Standard Error Coefficient $ Effect
18. 0.006 2.770 0.351 0.102 0.283 Freehold tenure * 1989 Population (per km2) 0.000 3.909 0.425 0.094 0.367 1989 Population (per km2) 0.007 2.703 0.055 0.349 0.943 Freehold tenure * Distance (km) to all weather roads 0.000 4.239 0.072 0.197 0.836 Distance (km) to all weather roads 0.610 0.510 0.012 5.116 2.607 Freehold tenure * Rainfall and Soil Moisture 0.000 8.776 0.225 3.551 31.162 Rainfall and Soil Moisture 0.000 14.117 0.251 5.168 72.952 Freehold tenure * Elevation and Temperature 0.000 4.881 0.086 3.304 16.125 Elevation and Temperature 0.000 5.865 0.310 15.408 90.372 Freehold tenure 0.000 10.113 0.000 11.075 112.008 CONSTANT p-value t Std. Coefficient Standard Error Coefficient $ Effect
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20. 0.006 2.770 0.351 0.102 0.283 Freehold tenure * 1989 Population (per km2) 0.000 3.909 0.425 0.094 0.367 1989 Population (per km2) 0.007 2.703 0.055 0.349 0.943 Freehold tenure * Distance (km) to all weather roads 0.000 4.239 0.072 0.197 0.836 Distance (km) to all weather roads 0.610 0.510 0.012 5.116 2.607 Freehold tenure * Rainfall and Soil Moisture 0.000 8.776 0.225 3.551 31.162 Rainfall and Soil Moisture 0.000 14.117 0.251 5.168 72.952 Freehold tenure * Elevation and Temperature 0.000 4.881 0.086 3.304 16.125 Elevation and Temperature 0.000 5.865 0.310 15.408 90.372 Freehold tenure 0.000 10.113 0.000 11.075 112.008 CONSTANT p-value t Std. Coefficient Standard Error Coefficient $ Effect
28. 0.628 0.485 0.079 0.019 0.009 Freehold tenure * Embedded Land Tenure * 1989 Population (per km2) 0.056 1.909 0.282 0.018 0.034 Embedded Land Tenure * 1989 Population (per km2) 0.000 4.311 0.185 1.818 7.837 Freehold tenure * Embedded Land Tenure 0.002 -3.157 -0.089 1.762 -5.564 Embedded Land Tenure 0.006 2.770 0.351 0.102 0.283 Freehold tenure * 1989 Population (per km2) 0.000 3.909 0.425 0.094 0.367 1989 Population (per km2) 0.007 2.703 0.055 0.349 0.943 Freehold tenure * Distance (km) to all weather roads 0.000 4.239 0.072 0.197 0.836 Distance (km) to all weather roads 0.610 0.510 0.012 5.116 2.607 Freehold tenure * Rainfall and Soil Moisture 0.000 8.776 0.225 3.551 31.162 Rainfall and Soil Moisture 0.000 14.117 0.251 5.168 72.952 Freehold tenure * Elevation and Temperature 0.000 4.881 0.086 3.304 16.125 Elevation and Temperature 0.000 5.865 0.310 15.408 90.372 Freehold tenure 0.000 10.113 0.000 11.075 112.008 CONSTANT p-value t Std. Coefficient Standard Error Coefficient $ Effect
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Notas do Editor
Net returns to land allows direct comparisons between different land uses and production strategies. It is gross revenues less direct and indirect costs of production. The term “rent” (which has nothing to do with a lease) refers to these net returns. On the rangelands, producers try and “capture” rents from agricultural, livestock and wildlife production. See my Economics of Conservation paper on the web site