Land registration in Kenya has become easier on the blockchain. The transaction hash generated from the exchange of value during a sale of land on blockchain, serves as the receipt of the sale and a record of the transfer. It serves as a digital title deed. On July 11 2019, owners of a certain land in Kiambu County decided to register their land on blockchain. This week another piece of land was presented to us for registration on blockchain
We were later approached by other land owners who wanted their land registered on blockchain. We successfully registered a piece of land in Gilgil, Nakuru County measuring 10.67 hectares. The piece of land that was being valued at 2 million Kenya shillings per acre changed hands for 1,067,000 UBN per acre, a total of 28,462,225 UBN.
The blockchain technology has changed the world in various ways by making most of the work easier in industries. Embracing this technology in land transactions will enable many people to benefit from it. An advantage that blockchain provides is the transaction is peer-to-peer without third party. The blockchain ensures that the transaction is not fraudulent, but seamless.
Land transaction is an example of how a smart contract works. The smart contract is built on blockchain and inherits blockchain property (i.e., immutable, distributed and decentralized providing digital security). Smart contracts are self-executing. They eliminate the third party by solving issues in a way that does not require human trust.
The land transaction on blockchain eliminates hidden costs and unnecessary intermediaries involved in the buying and selling of land while reducing transaction cost and transaction time significantly. It also enhances data security and eliminates manual errors and duplication of verification processes.
Blockchain technology also records details of every transaction into a digital ledger that cannot be deleted or manipulated. The technology will seek to address the problem of double selling of land, corruption by middlemen and unjustified cases of demolition. This innovation will transform Kenya’s land buying and selling process that is often characterized by manual records, missing documents and duplicate title deeds, other forms of malfeasance in land registries.
From this successful implementation of blockchain on the land transaction, we can see that the adopting and appreciation of the potential of blockchain is being regarded positively by many people. This now gives us a grand opportunity to significantly alleviate such incessant challenges in our real estate industry permanently.