Urban land policy and urban land values a case study of land zoning in Nairobi

Abstract

Any land policy is aimed at land allocation and distribution. It affects both the value of land and the use and distribution of the product. The urban land policies that any nation follows are based on adopting different measures in order to achieve similar land-policy objectives. There are various urban land policy measures in Kenya. These include compulsory land acquisition (land banking), land use, zoning, and land taxation. Along with land policy, land values are affected by several factors. However, in different periods and regions, it is not always the same factors that affect land values. Such factors include population, Gross Domestic Product, the economic situations, political events time, area and distance from the city centre The study attempts to investigate whether it is true for Nairobi that land values have been affected by the urban land policy and more so zoning. It is apparent from literature reviewed and the data analyzed that urban land policy, and in particular zoning, has an effect on land values. There are two parts to this study. The first part comprises the introductory chapters generally covering the introductory formalities which include among others, the study objectives, research methodology and hypothesis. In this first part we have also reviewed related literature and give a short history of the study area and the history of zoning there. The literature reviews urban land policy, the urban land market and zoning in both developed and developing countries. This was done in order to find out if urban land policy and in particular zoning has any effect on land values. The second part of this study comprises the data analysis chapter and final conclusions and recommendations chapter. The conclusions are based on the findings from different factors regressed against land values existing in different zones in Nairobi from 1935 to 1987. It was found out that land policy decisions, especially zoning, have had an effect on land values. Zoning contributes about 60% when considering all the zones chosen. Zoning, however, is not significant when considering zone by zone, because there is no intra zoning arrangement; and also provision was made in this study for other land uses in each zone.