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What is Kabaka’s Land and how it differs from Private Mailo Land

What is “Kabaka’s Land”?

During the 1900 Buganda Agreement, all land in Buganda was divided into two; crown land, which was under the control of the colonial government, and mailo land.

This mailo land was also divided into two; Official mailo and private mailo.

Official mailo includes the land given to the Kabaka (350 square miles) and the ssaza chiefs who got eight square miles, among others.

The 350 square miles is the land that is currently managed by the Buganda Land Board. This land is predominately found in suburbs such as Nansana, Munyonyo, Buziga, Konge, Kigo, Maganjo, Kagoma, and Ganda, among others.

One cannot buy and own the “Kabaka’s land”. The reason why they only give leases on this land. The difference between “kabaka’s land” and private mailo is that a buyer is only given a leasehold title for Kabaka’s land while for private mailo one can get either a leasehold title or an outright transfer.

The Difference Between Private Mailo Land and Kabaka’s Land

Private Mailo; Private Mailo is the land parcelled out to individuals in the sense that it was their property. “People such as Kabaka Daudi Chwa, his mother, the Muhamedian prince, who was Mbogo, and the mother of Mwanga, were given land as individuals. 

They could deal with this land as they deemed fit; they could transfer it, or if one got a financial problem or any other, they could sell it.

Between 1900 and 1908, roughly 1,300 Baganda individuals and institutions, including churches, were given the Private Mailo. Private owners own their property in perpetuity (forever) and can sell or pass their rights on to their heirs.

Official Mailo; the Kabaka owns this land because of his position. The sale of Kabaka’s land is not permitted because it benefits the Kabaka’s office, Katikkiro, Ssaza, and Gombolola Chiefs. In distinction, with Private Mailo, one can get either a leasehold title or an outright transfer.

The other difference is that one has to pay the premium and annual ground rent for Kabaka’s land. In contrast with the Private Mailo, you only pay for the premium.

The official premium is 10% of the land’s capital value, while ground rent is 1% of the premium. Let’s say “If a plot, say in Buziga, costs USh 40 million, that is its capital value. The premium is 10 per cent, which translates into USh 4 million, while the ground rent is one per cent of USh 4 million which is USh 400, 000. For that plot in Buziga one pays premium once, and annual ground rent over the 49 years.” 

When the lease expires, the land returns to Kabaka’s ownership. The Kabaka’s office determines whether to extend the lease. But it is the policy of Buganda Land Board that once a lease expires, we renew it and give it to the sitting tenant.”

All land sold at LUBA Properties Limited is Private Mailo Land. Talk to us on 0773259007 or 0757444666 for more information.

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How to Register and Transfer a Land Title in Uganda

After you have purchased your piece of land – now it’s time to transfer your land title into your names. The process seems complicated on the outside but when you look closer, it is simplified into a few steps explained below using land in Kampala as a case study – let’s dive in.

REQUEST A SEARCH AND CONSENT FORM
The first step in registering land is always requesting this form. The ministry of Land gives you a request form where you fill out the details about the land to be searched.
The registry also provides a Bank Advice Form, which is used to pay cash in the bank for this search. This form serves two purposes as it is the same form used during the payment of taxes. Even in cases of freehold ownership, one does not have to request consent to transfer. This form will be used to determine the amount of tax payments owed and to make payments.

PAY SEARCH FEE
After obtaining the Bank Advice Form, you can go ahead and make a payment in the designated bank upon which a receipt is granted. This receipt has to be presented at the registry before the search is conducted.

CONDUCT THE SEARCH AND DRAFT THE AGREEMENT
After payment, the search is conducted at the registry. The receipt of payment for the search has to be presented before the search can be conducted. It is also at this point that one picks up the consent to transfer application.
After this, an agreement is drafted. This is usually drafted by a lawyer and although it is not mandatory, this is common practice.

VALUATION OF PROPERTY
This is usually done by the Chief Government Valuer’s office. This is to mainly determine the value of the property for transfer purposes, assessment purposes, and also for payment of stamp duty.

OBTAIN CLEARANCE FORM AND ASSESSMENT OF STAMP DUTY
After the valuer has approved the cost of the property, the file is taken to URA where an assessment form for stamp duty is provided. However, anyone purchasing land valued at more than Shs 50m must provide an income tax clearance indicating their source of income for tax purposes.

PAYMENT OF STAMP DUTY
Stamp duty is then paid in the designated commercial bank. Here, it is required that payment is only made at the designated commercial bank. The bank then notifies URA that the payment has been made. There is a reconciliation process between the bank and the revenue authority which takes three working days.

CONSENT TO TRANSFER BY THE LAND BOARD IN KAMPALA
The transfer forms are then taken to the land board in Kampala for consent. Here, the receipts of payment of consent forms must be presented. However, if companies are involved in the transaction, they must file with the companies registry for a special authorization which costs a fee of 20,000 shillings.

ASSESSMENT OF REGISTRATION FEES
The sales agreement is then presented to Kampala Capital City Authority to approve the registration fee. An assessment form is then provided with a registration fee to be paid at the designated bank. The documents include a signed sales agreement, a receipt of payment of the stamp duty, and the company’s resolutions to buy and sell.

TRANSFER DOCUMENTS ARE THEN KEPT AT THE REGISTRY OF LANDS
The transfer documents are later stored at the Registry of lands and then transmitted to the Registrar who passes the instrument of transfer. It is then later sent to the commissioner in charge of land registration for verification.
The registrar cancels out the old owner and replaces him with the new owner in handwriting. The buyer and seller are required to provide passport photos for this process.

To round it up, land transfer documents include receipts of payment for registration fees and stamp duties, plus passport photos of both the seller and buyer of the property.

If you need help with registering your rights on a piece of land or transferring a land title – contact us on 0773259007/ 0757444666 or email us at info@lubaproperties.ug

Read more about land in Uganda on our website: www.lubaproperties.ug