Discussion Paper No. 112 of 2010 on Effects of Land Titling on Poverty in Kenya

Abstract

Kenya has a 50 year history of ongoing land reform. However, with multiple land tenure systems, including customary and statutory systems, past tenure reforms have not resolved inherent land ownership problems. These problems include weak land administration, inaccurate recording of established occupancy rights, landlessness and land disputes, and disempowerment of women and children through denial of their land rights. Various aspects of land reform have been studied previously, but not in the context of the relationship between security of land tenure and the poverty situation. Poverty levels remain high despite economic progress, owing to various factors, among them weak land rights. Since land is a critical factor of production, prevailing land rights may affect household production and economic welfare. This study examines the potential link between ownership of a title deed as a proxy for land rights and consumption expenditures or poverty. Using a recent household survey data, the effect of ownership of titled land and household poverty as represented by consumption expenditure is tested, while controlling potential endogeneity of the tenure variable.