MAKERERE

UNIVERSITY

COLLEGE OF ENGINEERING DESIGN, ART AND TECHNOLOGY

SCHOOL OF BUILT ENVIRONMENT DEPARTMENT OF CONSTRUCTION ECONOMICS AND MANAGEMENT

FINAL YEAR DESSERTATION

INFORMAL LAND MARKETS IN UGANDA: A CHARACTER AND OPERATIONAL ANALYSIS(A CASE STUDY OF KATANGA AND MUKWENDA VILLAGE) BY NANSAMBA JANAT

07/ U/13385/PSA

SUPERVISOR: Mr.Mwanje Nassir

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DECLARATION I,NANSAMBA JANAT, hereby declare to the best of my knowledge that the information presented in this research is original and has never been presented to any other institution of higher learning for an academic award.

Date ......../........../......... Signed........................... NansambaJanat

APPROVAL This is to certify that this research report is of NANSAMBA JANAT and has been produced under my supervision and submitted to the College of Engineering, Design, Art and Technology, School of Built Environment, Departments of Construction Economics and Management, Makerere University in partial fulfilment for the award of a Bachelors of Science degree in Land Economics.

Date ......../........../......... Signed............................ Mr.Mwanje Nassir

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ACKNOWLEDGEMENT This research would not have been accomplished without the will of Allah who has guided me throughout the hardships until its completion, the honour and glory goes back to Him. I am greatly thankful to my Project SupervisorMr. Mwanje Nassir for his enthusiasm, inspiration, and great efforts to explain things clearly and simply to me whenever I approached him, May the good Lord bless him. I am greatly indebted to thank my dear beloved Mother, sisters and brothers for their immeasurable efforts and sacrifices in providing me with financial, moral and spiritual support. Thank you very much for being there for me always. May the Almighty God richly reward them. I would like to acknowledge the staff and management of the Local Chair Persons who availed me with the necessary information I needed during my research. Without their willingness and co-operation, this work would have been difficult to accomplish. Lastly but not the least, I thank all my friends especially Sarah, Angella, Edward, Betty among others, course mates, lecturers, to mention but a few. Thank you very much for your undivided care and support in times when I needed u. May the good Lord reward you abundantly.

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TABLE OF CONTENTS

APPROVAL .......................................................................................................................................... ii ACKNOWLEDGEMENT ................................................................................................................... iii LIST OF TABLES ............................................................................................................................... vi LIST OF FIGURES .............................................................................................................................. vii ABSTRACT......................................................................................................................................... viii CHAPTER ONE ................................................................................................................................... 1 1.0 INTRODUCTION ............................................................................................................................ 1 1.1 BACKGROUND OF THE STUDY ................................................................................................. 1 1.2 PROBLEM STATEMENT ............................................................................................................... 2 1.3 OBJECTIVES OF THE STUDY ...................................................................................................... 3 1.4 RESEARCH QUESTIONS............................................................................................................... 3 1.5 SIGNIFICANCE OF THE STUDY .................................................................................................. 3 1.6 SCOPE OF THE STUDY ................................................................................................................. 4 1.6.1 Content Scope ................................................................................................................................ 4 1.6.2 Geographical Scope ....................................................................................................................... 4 1.7 Conclusion ........................................................................................................................................ 4 CHAPTER TWO .................................................................................................................................. 5 LITERATURE REVIEW .................................................................................................................... 5 2.0 Introduction ....................................................................................................................................... 5 2.1 Definition of Land Markets .............................................................................................................. 5 2.2 Types of Land Markets ..................................................................................................................... 6 2.2 History of Land Markets in Uganda ................................................................................................. 7 2.4 Why Land Markets Are Needed ..................................................................................................... 11 2.5 Impact of Land Markets on Less Developed Economies ................................................................ 12 2.6 Conclusion ..................................................................................................................................... 13 CHAPTER THREE ............................................................................................................................ 15 RESEARCH METHODOLOGY ...................................................................................................... 15 3.0 Introduction ..................................................................................................................................... 15 3.1 Research Design.............................................................................................................................. 15 3.2 Area of Study .................................................................................................................................. 15 3.3 Study Population ............................................................................................................................. 15 iv

3.4 Research Tools ................................................................................................................................ 15 3.5 Sample Design (Population and Sampling Techniques) ................................................................. 16 3.6 Sample Size..................................................................................................................................... 16 3.7 Data Collection ............................................................................................................................... 16 3.10 Limitations in the Research........................................................................................................... 17 CHAPTER FOUR............................................................................................................................... 18 DATA ANALYSIS, PRESENTATION AND DISCUSSION OF FINDINGS............................... 18 4.0 Introduction ..................................................................................................................................... 18 4.1 Distribution of questionnaires and respondents .............................................................................. 18 CONCLUSIONS AND RECOMMENDATIONS ............................................................................ 25 5.1. Conclusion ..................................................................................................................................... 25 5.2Recommendations ............................................................................................................................ 26 REFERENCES .................................................................................................................................... 28 Appendix .............................................................................................................................................. 29

LIST OF TABLES
Table 4. 1: Response rate of the different target groups. ...................................................................... 19 Table 4.2: Methods by which available property for sale is identified ................................................. 20 Table 4.3: How to Differentiate Land Parcels ...................................................................................... 21 Table 4.4: Evidence for purchase of Land/ House ................................................................................ 22 Table 4.5: Forms of accessing land ....................................................................................................... 23

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LIST OF CHARTS
Chart 4 1 Response rate of respondents .................................................................................... 19 Chart 4.2 Sources of Information ............................................................................................. 20 Chart 4. 3 Differentiation of Land Parcels ................................................................................ 22 Chart 4. 4 Reasons for the Existence of Land Markets ............................................................. 24

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ABSTRACT
This research analysed the informal land market in Uganda its characteristics and operational analysis. The study population comprised of areas of Mukwenda and Katanga. Katanga is subdivided into four zones and these are Soweto, Kimwanyi, Busia and Katale. Each of these zones including Mukwenda has a chairman. The chairman is a major source of information about land transactions in their area of jurisdiction in addition to the people in the area. The study was achieved by examining how land transactions operate, most especially those that take place without exchange of a certificate of title. This therefore necessitated determining how boundaries of plots of land are identified.

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CHAPTER ONE
1.0 INTRODUCTION
Land markets play a great role in the development of an economy thus there is need to understand the functionality of these markets and how best they can be made efficient and effective more especially to the urban poor.

1.1 BACKGROUND OF THE STUDY

The relationship between informal1land market and the urban poor is a loose one. Increases in urban land prices together with the slow delivery of residential plots through formal means has made registered property unaffordable to the urban poor and an increasingly less attractive option to middle-income groups in many countries in Africa, and Uganda in particular. When the supply of land for development is constrained in expanding cities, middle-income groups tend to buy out poorer families living in informal or squatter settlements in a process known as downward raiding. Thus, there is a much greater diversity of social groups living in squatter settlements in many cities today. However, the implications of rising middle-income involvement in an informal land market need to be fully understood. Furthermore, there is need to know about the actual role of particular social groups in the purchase, development and sale of plots and how this affects over- all access to plots, particularly for the urban poor. According to Henderson J, (2007) the unavailability of reasonably priced and well located serviced land is the single greatest constraint to the rapid expansion of housing opportunities for low and moderate income families. For a variety of reasons, including large holdings of land by government, control of large tracts by special private interests, poor environmental conditions and a woeful lack of infrastructure, such as water and sewer lines, private developers are often forced to look at un serviced land on the outskirts of most urban areas for housing sites affordable to the majority of the population. Yet these sites are often far from centres of employment,

Informal land markets refer to land for which the occupier has no legal documentation of ownership such as a title or any approval from the legal owner to occupy the land.

creating significant transportation costs for workers and require expensive infrastructure costs to develop properly. Providing necessary infrastructure can add at least 30-40 per cent to the sales cost of a unit, in effect pricing it well beyond the affordability capacity of most of the originally targeted population. Added transportation costs from remote new housing developments to other parts of the urban area where most jobs are located also strain affordability and add commuting time. On the other hand, serviced land in closer-in areas is often so expensive as to preclude its use for low and moderate income housing without subsidies. The land market situation in Uganda bears many similarities with those of other subSaharan African countries but there are also some significant differences, stemming largely from systems introduced by the British at the beginning of the 20th century that make it unique. This is particularly true in the central region where the capital city of Kampala is located. It must be acknowledged that the majority of Kampalas residents are too poor to participate in the formal land market and must resort to renting or squatting illegally on private or government land.

1.2 PROBLEM STATEMENT

The Informal Land Market is an activity that has no state recognised regulations. However, it is socially acceptable and has different administrative bodies like the Local leaders to streamline its performance. Since the Informal Land Market is not recognised under the law, it is known to be an illegal activity. There are no registered title deeds to offer security of tenure and land is not surveyed. The Informal land market is one way in which one can access land among the urban poor. It has proved to be quick, affordable, easily accessible and very close to the city/ town. Thus as much as the Formal Land Market is growing, there is need to address the needs of the poor, understand how they acquire land and how best the informal land market can be improved so as to improve the situation since it cannot be completely eliminated.

1.3 OBJECTIVES OF THE STUDY

1.3.1 Main Objective

The main objective of this study was to assess the nature of Informal land market in Uganda including their characteristics and how they succeed in allocating scarce land resources.

1.3.2 Specific Objectives

i. To find out how the majority of urban residents, access land under the existing land markets. ii. To assess the role and behaviour of particular groups within the informal land market. iii. iv. To establish the possible causes of informal land markets in Kampala. To establish how a well-functioning land market can enhance economic development. v. To give recommendations basing on research findings.

1.4 RESEARCH QUESTIONS

i. ii. iii. iv. v. vi. What is the nature of land markets in Kampala? Which people are involved in the Informal land Markets and what are their roles? What causes people to associate themselves with the Informal Land Markets? How can land markets influence development? What are the possible causes of informal settlement in Kampala? What are the possible solutions?

1.5 SIGNIFICANCE OF THE STUDY

i. The study and research findings will help policy makers or implementers in Kampala and Uganda in general to understand the nature of land markets, relevance in the development and their significance in addressing the problem of informal settlements and the urban poor. ii. The study will create awareness to the public about the existence of a formal land market the advantages that come along with acquiring land that is well recognized.

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The researcher seeks to help students in the related field to benefit from the research findings and also gives room for more study in the same field of land markets.

1.6 SCOPE OF THE STUDY 1.6.1 Content Scope

The research concentrated on the Informal Land Markets characteristics, how it operates, the bodies involved and its impact on economic development.

1.6.2 Geographical Scope

The geographical scope was limited to Kampala particularly Katanga and Mukwenda village because most of the land in these areas was owned informally so the researcher was in position to get the required information. The areas were densely populated and the unorganised forms of settlements.

1.7 Conclusion
The Informal Land Market was one of the solutions in which the urban poor could access land much more cheaply and quickly. They would therefore live in close proximity to work, access water and power both legally and illegally.

CHAPTER TWO LITERATURE REVIEW

2.0 Introduction
This chapter provides an insight into the history of land markets in Uganda, characteristics and definition of the land markets and why are they needed. The types of the land tenure systems in Uganda are also defined and notes from different scholars.

2.1 Definition of Land Markets

Land is the source of all material wealth. From it we get everything that we use or value, whether food, clothing, fuel, shelter, metal, or precious stones. We live on the land and from the land, and to the land our bodies or our ashes are committed when we die. The availability of land is the key to human existence, and its distribution and use are of vital importance (Simpson 1976).

Kironde (2000, 153) sets out a general understanding of urban land markets in Africa. In terms of this general understanding, an urban land market is considered to be a framework in which those seeking land, and those owning or controlling land, are brought into transaction in order to effect access to land by the land seekers. The understanding of the market framework is essentially prescribed by definitions of who participates in it and their assumed rationalities. For example, Mooya and Cloete (2007, 152) define the land market in terms of categories of agents such as users, investors, and developers. These categories give rise to letting markets, capital markets, and development markets respectively.

Land markets must operate within a framework of law that is accepted by all parties concerned. As Simpson 1976, observed: .the significant point is that security of tenure, that vital consideration when good land use is concerned, can be, and frequently is, enjoyed without any concrete evidence of title other than occupation. In those countries where individual property rights are recognized and the rule of law prevails, the courts will uphold occupation against anybody including the State or the Government other than a person who can prove a better right. In fact, provided that nobody else can produce evidence establishing some right, the courts will not
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require any proof from the occupier, for there is much truth in the old saying that possession is nine points of the law. Subject to article 237 of the Constitution, all land in Uganda shall vest in the citizens of Uganda and shall be owned in accordance with the following land tenure systems; customary, freehold, mailo and leasehold.

2.2 Types of Land Markets

Most analyses of land markets in African cities recognise the coexistenceof formal and informal land markets. But defining formal and informal markets is difficult; as they are often inter-related.While they have different rules, regulations and processes, theyalso share similarities, actors and logics. Broadly speaking, formalland markets are those whose transactions are legally recognised,whereas informal land market transactions are not recognised bylaw or are not officially registered in the governments systems. The term informal land market is used to talk about a variety of urban land transactions, exchanges and transfers that are not recognised by the state as legal, but which are nevertheless socially accepted as legitimate by a variety of urban actors. Informal land markets are a hybrid of a variety of practices and contain elements of customary/civil code law and social practices adapted to suit existing urban conditions. Although this market is, according to the law, illegal, the state (or some of its agents) is often complicit in its functioning.

Like the formal urban land market, informal markets consist of a variety of institutions which support, facilitate, regulate and arbitrate informal land transactions. These include state officials, such as local government councillors, traditional leaders, chiefs, community leaders, and community and family networks. Like formal markets, these regulatory bodies can be effective in facilitating exchange or can be overly restrictive and make it more difficult for (some) poor people to access land. Moreover, like formal regulations and structures, they can collapse in on themselves.

Within the informal land market, there are varying degrees to which land is classified. The degree of classification has a significant impact on how the price of land is determined. The informal land market has a large number of socially dominated land market transactions, where the supply and demand of land are mediated more by social relationships than by a financial logic. A study in South Africa has shown that although price or cost is still an issue, it is of secondary importance in the way people transact (Marx and Roysten, 2007). For example, where the right to land is conferred by a chief, the beneficiaries will offer the leader a gift as a gesture, which is often less than the market value. But research shows that peri-urban land practices are increasingly becoming classified and transactions are, like in the formal sector, becoming more and more driven by a financial logic. (Kironde, 2001; Syagga et al, 2002).

2.2 History of Land Markets in Uganda

The present land system stems from the end of the nineteenth century when Uganda became a British Protectorate. Under an agreement signed in 1900 a number of kingdoms were joined together creating a dual system of land tenure, parts of the country operating under statutory controls as in the case of Crown (government owned) land while the rest were under traditional customary tenure, which in turn had local and regional variations (UN-Habitat 2010). In the central Kingdom of Buganda a system of freehold known as Mailo was introduced with land occupants becoming tenants of the local chiefs. When Uganda obtained its independence in 1962, public land became vested in the state and was administered through District Land Boards and the Uganda Land Commission.

In 1975 the Mailo system was technically abolished but in parts of the capital city Kampala, former Mailo land that had officially been designated for agricultural use became in reality residential or commercial and subject to informal subdivision, leasing and sub-leasing. Due to the resulting uncertainties in ownership, occupation by squatters and a lack of enforcement of land use controls, the formal status of the land has become confused. Similar problems exist in other urban parts of the country.

The land administration system is based around the Registration of Titles Act, modelled on the Australian Torrens system (Mugambwa 2002). While this operated reasonably successfully up until the time of Independence, it has subsequently proved costly and time consuming. There is lack of investment and disillusionment by many people which has resulted into having them take no interest in registering their titles because it takes long and is too expensive. In 1996 the responsibility for surveying and mapping land parcels was passed to the private sector but it too lacked capacity and was expensive. The tendency was therefore to revert to the informal market.

Historically, land markets in rural Uganda have tended to operate within the customary tenure system making it difficult for outsiders to take part. In the rural areas an increasing number of families now borrow or rent land with rents accounting for a substantial proportion of the value of the crops produced. Renting is more common than sales since many families are reluctant to lose what they regard as their ultimate asset and cultural heritage.

In Uganda, much of society remains patrilineal and in spite of legislation and inheritance laws designed to protect widows, women find it difficult to gain access to land and hence obtain benefit from credit. The country has a dual system of tenure, whereby both formal and informal land markets are well established in some areas while in others there has been a reluctance to deal in land.

2.3Land Tenure Systems in Uganda

Land tenure refers to the manner in which land is owned, occupied, used and disposed ofwithin a community. A properly defined and managed land tenure system is essential toensure balanced and sustainable development. There are four types of landtenure systems in Uganda: customary, mailo, freehold and leasehold. These are as provided in the 1995 Constitution.

2.3.1 Customary Tenure

The customary land tenure is the most dominant in Uganda. This is the system wherebyland is owned and disposed of in accordance with customary regulations.
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Specific rulesof customary tenure vary according to ethnic groups and regions. Often customarytenure is superimposed on other systems like mailo and freehold. This tenure system alsoexists on its own as communal land ownership. One advantage of this tenure system isthat people have lived with it for a long time and therefore understand it. Onedisadvantage is that it does not encourage record keeping, often making it difficult toresolve land use conflicts. Environmentally, the main disadvantage is that it generateslittle personal interest in the status of land resourcesleading to mismanagement and degradation. Previously, when human populations were low, the environment could absorb the impacts of human activities. It now appears,however, that the assimilative capacity of Ugandas environment under customary tenureis exceeded in several areas of the country.

2.3.2 Mailo Tenure

Mailo tenure was introduced as a result of the 1900 Buganda Agreement. Under this Agreement, land was divided between the Kabaka (King) of Buganda, other notables andthe Protectorate Government. The basic unit of sub-division was a square mile (hencethe name mailo). Originally, there were two categories of ownership under the mailosystem (private and official mailo). Official mailo land was transformed into public landin 1967. Under this system, land is held in perpetuity and a certificate of title is issued.The principal advantage of this system is that it provides security of tenure, thus allowinglong-term investments including those related to conservation. Absentee landlordism andlack of access by regulatory agencies are disadvantages that limit sound environmentalmanagement. Absentee landlordism encourages squatters on mailo land. These squattershave no incentives for the sustainable management of a land resource they do not own.To the extent that mailo land is private, resource management regulatory agencies havelimited authority over what happens on it. For instance, much of the deforestationoccurring in the districts of Buganda is on mailo land. There are no clear mechanismswhich allow the Uganda Forest Department to regulate the private forests on these lands.

2.3.3 Freehold Tenure

In the freehold tenure system, ownership is also in perpetuity, and a certificate of title isissued. The system was originally established to address limited and quite specificrequirements or requests, say by religious organisations. Freehold tenure was also grantedas a result of the Toro Agreement of 1900, Ankole Agreement of 1901 and BunyoroAgreement of 1933. The Crown Lands Ordinance of 1903 gave the British colonialauthorities power to alienate land in freehold. This system is mainly found in parts ofeastern and western Uganda. Apart from parcels of land under the freehold system beingsmaller, it has a lot of similarities with mailo tenure and shares the same environmentalmanagement problems. In addition, due to heavier population pressures in parts ofUganda where freehold land tenures exist, land fragmentation is a common occurrence. Land fragmentation has contributed to significant environmental degradation, although concrete data is lacking.

2.3.4 Leasehold Tenure

Leasehold tenure is system whereby land is held based on an agreement between the lessor and the lessee. There are two types of leasehold tenure arrangements, namely,private leases given to individual landlords and official or statutory leases given to individuals and/or corporate groups under public act terms. The advantage of the leasehold system is that the lessor can attach conditions to the leases and has the right to revoke ownership in case of abuse. The main disadvantages are that leases are costly and cumbersome to obtain, and hither to, the leases awarded have not addressed environmental concerns.

The 1975 Land Reform Decree sought to improve upon tenure arrangements for land. The Decree substantially changed the legal basis of land tenure in Uganda by declaring all land in Uganda as public land administered by the Uganda Land Commission. Freehold and mailo lands were converted into leases of 99 and 199 years for individual and public/religious bodies, respectively. The provision which required consent of the customary tenant before grant of freehold (or lease) on public land was abolished.

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2.4Why Land Markets Are Needed

An effective and efficient land market is a crucial component of any successful market economy, bringing a variety of advantages to a nation and its citizens. While there are many essential factors necessary to support the introduction of a land market, a small but significant number of prerequisites require particular mention since land markets do not operate in isolation. Their level of impact depends upon a number of other external factors including an effective tenure and legal framework; transparent land policies; macroeconomic stability; freer trade; and non-predatory governments.

Different land uses, have differing potential to contribute to economic growth. The land market encourages developers to develop sites to their highest economic potential, picking that use and building at that density that will yield the highest residual land value. Any bid to buy land to be used for a lower intensity use will lose out to bidders who will be able to make a higher offer (Dowall 1993, 7). Maintaining efficient land markets requires the (local) state to eliminate barriers to entry, promote competition, and avoid unnecessary regulation that restricts the operation of the market.

For David Dowall (1993, 3), land markets perform two additional functions. Firstly, to allocate land so that the quantity of land supplied equals the quantity of land demanded and thereby clearing the market and secondly ensuring that land is efficiently used. The demand for land is understood as a demand derived from the demand for different economic activities (Dowall 1993). Efficient land markets therefore not only allocate land to maximise social welfare they also allocate productively amongst land uses (Harvey and Jowsey 2004).

The acceptance of this view of land markets, introduces the possibility that markets are understood to be unable to work for poor peopleas Cheshire and Sheppard (Cheshire and Sheppard 2004) have pointed out: Land markets have implications for welfare and social issues such as segregation going far beyond the shelter houses provided. They are tightly regulated and yet economists devote comparatively modest amounts of attention to their analysis.Land markets are mechanisms that, provided there are appropriate institutional checks and balances allocate ownership and use
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rights in a manner that allows land and its associated assets to be used in the most economical way. Given secure land rights, land markets can increase the incentive for people to invest and for financial institutions to lend, since land can be used as collateral as well as being the basis for production. An efficient and effective land market can improve the performance of a nations economy and increase prosperity in the UK, for example, property related services are estimated to contribute 9% of GDP to the economy (RICS, 2002).

An efficient and effective the land market will allow landowners to turn their asset into capital that can be used for other purposes. The money released through the mortgage system can be used to finance alternative forms of investment. In Spain for example it is estimated that at least 56% of the money in circulation has been made available through the real estate market (UNECE, 2005). Private land ownership encourages entrepreneurship and commitment. It reduces dependency on the state, allowing governments to focus on their other responsibilities. Those who practice good stewardship of the land tend to engage in the whole social and democratic process. An efficient land market can create more favourable conditions within a country which, when combined with other economic and social factors, should encourage better citizenship.

The levels of investment and the impact of land markets vary across the globe. In general the positive economic consequences have been most noticeable in Europe and North America. In much of Africa, market activity is limited - in Southern Africa for example, land sales among smallholders are rare while in East Africa there has been some buying and selling of land. In general, throughout Africa, individuals often acquire formal land rights through the market while land rights that are acquired through traditional forms of gift or inheritance remain under communal or customary tenure (Mahoney 2007).

2.5

Impact of Land Markets on Less Developed Economies

Land markets require the injection of capital to enable them to function. This can be generated from a number of sources. The corporate investor can normally gain access to capital or credit to fund acquisitions. Communities or individuals may find it difficult to acquire collateral against which to borrow monies to finance the
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acquisition of land and thus enter the land market. Many of the countries in former Eastern Europe have needed to ensure that sufficient land and property is locally owned so that it can be used as collateral to raise funds that can be used for investment. Land can be mortgaged to release funds for the further development of other current assets or to support investment in a business or other venture, thereby stimulating the economy and potentially the quality of life of the individual citizens. De Soto 2000, in his attempt to unravel what he calls the mystery of capital concludes that even in areas of great poverty there is great potential wealth. The poor cannot convert what he describes as dead capital into its real asset value, which is possibly worth trillions of dollars. The suggests that many poor people who do not live in the rich western economies are every bit as intelligent, innately skilled and hardworking as those in successful economies, but remain poor because of what he describes as the Bell Jar Effect. This occurs where those inside become rich because they are able to exploit property, but those outside are excluded by invisible barriers such as access to expert lawyers and the ability to navigate the red tape of their property systems. The poor have no access to formal land markets and little or no access to credit.

Having a formal structure in place is necessary, but not sufficient to trigger the creation of greater wealth for more people. For land markets to work there must be the political will and the empowerment of all people to permit and encourage them to take part. This may necessitate some state intervention in the otherwise free market processes. Countries introducing a land market should ensure provision is made for capacity building to provide the new skills necessary to support the market, including general management skills.

2.6

Conclusion
In conclusion, the land markets do not necessarily reflect the actual values attached to the land as seen through exchange of land as a gift to another. Land that was originally owned by the chiefs or the Kabakas2 more so in Buganda remains so however, the people in that kingdom were free to use the land as tenants of the Kabaka. It must be noted that land is one of the greatest sources of wealth as earlier

Kabaka is the title given to the king of the Kingdom of Buganda

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defined and with it; one has a feeling of belonging whether it has been obtained formally or informally.

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CHAPTER THREE RESEARCH METHODOLOGY

3.0 Introduction
This chapter consists of methods, procedures and techniques which were used while carrying out the study. It encompasses the research design, targeted study population and sampling techniques used, the research methodology, how the field study was carried out, how data was collected, analyzed and a general summary.

3.1 Research Design

Both qualitative and quantitative methods of data collection were used. A quantitative approach was used so that measured answers to questions about the relationship among variables could be obtained mathematically with the purpose of explaining, predicting and controlling the phenomena whereas qualitative approach was used to answer questions about the complex nature of the phenomena with the purpose of describing and understanding the phenomena from the respondents point of view.

3.2 Area of Study

The area of study was Mukwenda village and Katanga as areas characterized with informal settlements as a result of the informal land markets. Katanga is subdivided into four zones; Soweto, Kimwanyi, Busia and Katale. Each Zone is represented by an LC.1 Chairman who is the prime witness in property transactions in the representative zone.All the zones are located within the urban Centre. To be more precise, they are close to Makerere University, places among many that are being used to accommodate many low income earners but who must live and work at the lowest cost as possible.

3.3 Study Population

The study population was selected randomly. It comprised of LC.1 chairpersons, Landlords, Elders of some households and addressed the choice for particular management systems.

3.4 Research Tools

The study employed two research tools, which included the following: Observation guides, which helped to observe directly in the field.
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Questionnaires were used to obtain information as well as interview the people of interest to the study who had relevant information pertaining it.

3.5 Sample Design (Population and Sampling Techniques)

This research adopted a non-probability sampling technique, Purposive sampling to generate a respondent list. Putting into consideration the fact that such samples consisted of individuals considered to have the knowledge and information to avail dependable facts. The generated list was subjected to a probability sampling technique, stratified sampling owing to the facts that not all the individuals held land under the informal arrangement.

3.6 Sample Size

The Sample size consisted of 125 respondents, some of whom were individuals who owned land under informal land markets and the rest were administrative officials, such as local government councillors.

3.7 Data Collection

The data collected was both primary and secondary data. Methods employed in collecting the data comprised of both questionnaires and interviews with local leaders and property owners.

3.7.1 Primary Data

This form of data was characterized by interviews and questionnaires. Questionnaires were distributed to various family networks and individuals. Open guided interviews using the same questionnaires were used.

3.7.2 Secondary Data

This was done through literature reviews; information was obtained mainly from publications such as Journals, internet, Text books and from my experiences.

3.8 Methods of Data Analysis

Methods employed in analyzing the data were grouped into two categories including both quantitative and qualitative methods. Descriptive statistical methods were

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employed. Data was then tabulated and presented in graphs and pie charts for interpretation and comprehension.

3.9 Data Treatment Procedures

For the instrument used in the study, it was edited and further checked for possible sources of errors. This will be done by use of a codebook for processing both qualitative and quantitative data collected. Processing of data was carried out both manually and by a computer using programmers like Microsoft Excel, Tabulated and presented in graphs and pie charts.

3.9.1 Editing
This was done after questionnaire administering and it was characterized by cross checking of any possible mistakes and errors that might have been provided by the respondents. The objective of this was to ensure accuracy, exhaustiveness and uniformity in information obtained.

3.10 Limitations in the Research

a) Some of the targeted groups could not provide the researcher with the required data due to the need to protect their status in some of the law suits that were already filed in Court. b) Some of the targeted respondents could not easily be accessed due to their heavy work schedules. c) Shortage of finance to do the research since the researcher was a student. d) Lastly but not least time factor was a challenge due to various schedules of work, as this research will be conducted alongside class-studies.

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CHAPTER FOUR DATA ANALYSIS, PRESENTATION AND DISCUSSION OF FINDINGS

4.0 Introduction
This is an account of the research findings based on the facts got from the data collected. It contains information used to analyse the Informal Land Markets in Uganda. This was achieved by having interviews with local people, L.C.1 Chair persons, establishing the number of zones available along with their local chair persons, the role of particular people within this market, examining the possible causes of using the informal land market and proposing solutions based on the above findings. Some of the respondents were residents while others were not. Both Katanga and Mukwenda are characterized with developments such as storied houses, bungalows and unicons3with no planning arrangement. There was no form of organization in the areas of interest for instance no roads, there were foot paths instead. The sanitation and hygiene was also lacking. This was evidenced through the use of one pit latrine for a number of families, use of unprotected water source especially in Katanga region. Both Katanga and Mukwenda are located within the central division in Kampala. They are both neighboring Makerere University. The population consists of the young(children of the residents and students from the University) and old(those who own the land and own a piece of land / plot on which they carry out their business activities). The students here only rent out small rooms during their period of study at the university.

4.1 Distribution of questionnaires and respondents

To obtain reliable information for this research, a total of 125 questionnaires were distributed out to different respondents namely; 4 LC.1 chair persons and people who own land. Their response formed the basis of this analysis. Out of the questionnaires issued, 86% were filled and returned and 14% were not returned. The summary of this is shown in Table 4.1below.
3

Unicorns are small structures whose roof and walls are constructed out of iron sheets.

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Table 4. 1: Response rate of the different target groups.

Type of Respondents Target number LC.1Chair persons Land owners with registered Titles Land owners without Titles Total 5 40 80 125 4 37 65 107 3.74% 34.58% 60.75% 99.07% Number responded Percentage responded

Source: Field Data (2011) The researcher also found it necessary to carry out interviews from the chair persons of the different zones. All the chairpersons gave information in as far as their participation in land transactions was concerned. Chart 4 1 Response rate of respondents

Percentage responded
Percentage responded

Land owners without Titles

60.75%

Land owners with registered Titles

34.58%

LC.1Chair persons

3.74%

Source: Field Data (2011)

4.2.1 How Land is identified and Transactions are concluded

People identify available property on sale through a social network of families but the majority is through neighbors within the community. They always look out for each other and they know each basing on the length of time spent in the area and how they
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got to live in the community. When one has identified a piece of land/ /room, he/she negotiate and come to an agreement with the owner (Kibanja4 owner) on the amount to be paid and the payment terms. The transaction is completed through the signing of a sales agreement that is signed by the parties to the agreement, any representatives in the neighborhood or family and the LC.1 Chairperson. There is no exchange of a Title Deed. Each party that is the buyer and the seller keep a copy of the sales agreement for record purposes. The LC.1 also keeps a copy of the same. The Stamp indicating the village which the LC.1 Chairperson represents is an added formality to the transaction. Table 4.2: Methods by which available property for sale is identified
Categories Families Neighbours Estate agents Total Frequency of Response 25 73 9 107 Percentage of Response 23.4% 68.2% 8.4% 100%

Source: Field Data (2011)

Chart 4.2 Sources of Information

Source: Field Data (2011)

4

Kibanja holders peasants w are allowed to develop or carry out farming on the land but they do not own it.

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4.2.2 Plot Boundary Identification The owners of land/plots or houses/rooms had several ways in which they defined the extent of their land from that of their neighbours. While some people used shrubs to earmark their property, others used built walls, measured using number of steps by walking, ropes/ metre tapes (to obtain dimensions but not area) and foot paths. Table 4.3: How to Differentiate Land Parcels
Demarcating Features Shrubs Wall fence Metre Tapes Others Number of Users 7 81 9 10 User Percentage 6.5% 75.5% 8.4% 9.4%

Source: Field Data (2011) Land in these areas was not identified with title deeds and prints by several land owners. There were specific marks that were recognised by all people. These were Boundary walls that enclosed the entire premises of a family to mark their entity. Others used shrubs or clearly visible trees to mark their boundaries. Foot paths were also used to distinguish ones land from that of another. Others used number of strides to reach different end points of their land. Ropes were also used to measure ones size of the land. It was however noted that majority of the used wall fences to identify their premises as indicated in the chart below.

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Chart 4. 3 Differentiation of Land Parcels

8000.00% 7000.00% 6000.00% 5000.00% 4000.00% 3000.00% 2000.00% 1000.00% 0.00% Shrubs Wall fence Metre Tapes Others Percent

Source: Field Data (2011)

Table 4.4: Evidence for purchase of Land/ House

Proof of Purchase Title Deed Sales Agreement Neighbours witnessed Others No. of Purchasers 24 63 5 15 Percentage of Purchasers 22.43% 58.87% 4.67% 14.02%

Source: Field Data (2011) Transactions in land and houses occurred like any other real estate business. While some bought a small piece of plot, others bought rooms. These transactions were always held privately. A small simple documentation, a sales agreement, often of only one page or more was drafted by any one of the people. It defined the vendor and seller, the particulars of the land and the amount of money payable. This was signed by the LC.1 chairperson of the area and any other witnesses. The LC.1 chairman carries a stamp which is recognised under his jurisdiction and can be acknowledged by everyone. Some people were noted to have transactions taking place without any written documentation but the presence of people was enough. It was however noted

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that majority of the people used sales agreement because it was more secure and it could be used to obtain a loan from financial institutions like Micro Finance at Kubili. Table 4.5: Forms of accessing land
Forms of Accessing property Oral Agreements Written Agreements Frequency 16 91 Percentage 15% 85%

Source: Field Data (2011) The researcher found that there were mainly two forms of agreements used as indicated in the table above. However, the written agreements have taken greater preference among the people as they create a greater form of security of ownership and record keeping. The change in administration does not erase the records of transactions carried out in the past. These same agreements are used to obtain loans from some financial institutions and to also acquire water and power from the respective authorities. Table 4 .6 Reasons for the existence of Informal Land Markets
Possible Reasons Respondents Percentage

Cheap and quick

32

29.9%

This is how the land is owned

65

60.7%

No idea of Formal Guide lines

10

9.4%

Source: Field Data (2011) While some people found it cheap and easy to access a plot in town, to others, it has been a culture that consisted of generations of people. Many of the people have lived all their lives in these areas. Since there is no evidence of title, people have bought and sold land as is known among them. Other people have no idea about how to acquire a title deed and would rather without the complications and processes of getting a new title deed.

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Chart 4. 4 Reasons for the Existence of Land Markets

Reasons for the existence of this Market

9.4% 29.9% Cheap & Quick This is how land is owned 60.7% No idea about the formal guidelines

Source: Field Data(2011)

Conclusion
The people in these areas have an outstanding way life. They have their own rules that govern them. There is no registration of property/ land. In fact evidence of transactions and ownership of land/ property is by sales agreements and witnesses to the transaction. Financial facilitation can be obtained from institutions but only if you do have a sales agreement. They have a mutual understanding among themselves. This understanding has helped them identify their one property from another as well as solving any conflicts. The LC.1 chairperson is the one of the people who helps to solve any conflicts that arise.

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CHAPTER FIVE CONCLUSIONS AND RECOMMENDATIONS

5.1. Conclusion
The researcher wanted to study the Informal land Market in Uganda as well as its operational analysis. Basing on the data obtained in the research and my understanding, it has been discovered that the majority of people in this area gain property through the Informal Land Markets. Land/ plots and houses/rooms are sold to and bought by individuals through sales agreements which can be signed in the presence of fellow neighbours however; the presence of an LC.1 Chairperson is always optional. It should be noted that there is no security of tenure that must be evidenced by the issuance of a title deed. This is because people occupy land that has an owner with a title but because these owners do not monitor what is carried out on their land, the time spent on this land brings about interests in the land by the encroachers that cannot be ignored by the real owner of the land. They are therefore liable to long legal battles and negotiations if they are to gain full control of the land again. Lack of evidence of land ownership title deeds has hindered the acquisition of finance from financial institutions like banks. Banks in and out of Kampala provide loans and mortgages to people who have security in form of property with title deeds. The bits of plot of plots are never surveyed and therefore the size is not always known. The end points of someones plot are always ear marked by some features like the wall fence around the property, trees, or foot paths. However, other forms of financial institutions like the Pride Micro finance at Kubili on Bombo road has helped a great deal to finance people in Katanga area and the surroundings to provide financial assistance to people without title deeds but with a home. The LC.1 Chairpersons do not only solve conflicts and act as witnesses in the land transactions, they also write recommendation letters to the financial institutions on behalf of the people they represent. They also write similar letters on behalf of the people on request so as to obtain water and power services from the different responsible bodies.The LC.1 Chairpersons act as witnesses in the land transactions.
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They also provide records to which they refer to in case of any disagreements or new transactions. They also act as advisors basing on past transactions and the current land matters. The Families provide information by word of mouth to fellow members who have the need to sell their plots or houses or to those who need to purchase. The neighbours are also a form of communication network which provide information to those who need it. They also act as witnesses in the transactions. While the Informal Land market may be cheap, quick to carry out and avails land close to the city/town and work places, it also has other loop holes as indicated below: i. It hinders further development of the land as there will always be the threat of eviction by the actual owner of the land. There is no real comfort in the people to develop long lasting buildings to fear of eviction.

ii.

Land wrangles cannot be ignored. In extreme instances, there are cases of kidnappings and murder.

iii.

Convenient areas for waste disposal are limited or not there at all. In some of the communities, it was discovered that there was only one toilet to serve a number of families and it was located at a very long distance from the families. Rubbish was disposed of on the sides of the roads and rain water channels.

5.2 Recommendations
The opinion of respondents was sought on how they wanted to have their problems to be solved. Below are their opinions and requests on how they can improve on their problems they face under the Informal Land Market. i. Negotiations through diplomatic means should be used rather than use of force. Breaking down someones home causes anger lots of people of which consequences like murder might result. In some courts of law, evidence by occupation is considered as a greater reason for someone to be considered as the owner of the land as compared to one has a title deed as proof of ownership of the land.
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ii.

People through politics should not incite among others that they will solve their problems if they are given power. This has hindered negotiations between parties to come to terms in hope of getting better solutions from their leaders. This has been false as politicians only looked for votes.

iii.

The courts in charge of litigating the rightful owners of the land should be worked on in the shortest time possible.

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REFERENCES
Deininger, Klaus and Mpuga, Paul, 2003, Land Markets in Uganda: Incidence, Impact, and Evolution Over Time, Proceedings of the 25th International Conference of Agricultural Economists,Durban, South Africa. Dowall, D. E. 1993. The role and function of Urban Land Markets in market economies.InWorkshop on privatization of land in Ukraine. Kiev, Ukraine: Ministry of Construction and Architecture, State Committee on Land Resources, and United States Agency for International Development HarveyJ., and E. Jowsey. 2004. Urban land economics. 6th ed. Houndsmills, Basingstoke: Palgrave MacMillan. Henderson, J. Vernon, 2007, The Effect of Residential Land Market Regulations on Urban Welfare, Draft prepared for World Bank Urban Research Symposium on Urban Land Use and LandMarkets. Kalema, Dr. William and Kayira, Duncan, 2008, Access to Housing Finance in Africa: Exploring the Issues, No. 4, Uganda, published for Fin Mark Trust. Kironde, J.M.L. (2001) Peri-urban Land Tenure, Planning and Regularisation: case study of Dar es Salaam, Tanzania. Study carried out for the Municipal Development Programme, Harare. Kironde, J. M. L. 2000. Understanding Land Markets in African urban areas: the case of Dar esSalaam, Tanzania.Habitat international 24:151-165. 2006. High Level Commission on Legal Empowerment of the Poor. Working paper for Tanzania.Making property rights work for the poor in Tanzania, 39. Dar es Salaam: University College of Lands and Architectural Studies. Mahoney, R. Dale, P and McLaren, R. (2007) Land markets - Why are they required and how will they develop? MugambwaT. (2002) Principles Of Land Law In Uganda. Rakodi, C. and Leduka, C. (2003) Informal land delivery processes and access to land for the poor in six African cities: towards a conceptual framework. Working Paper 1, DFID, The University of Birmingham. Rowton Simpson, S. (1976): Land Law and Registration.

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Appendix
QUESTIONAIRE FOR LAND OWNERS OR PARTICIPANTS IN INFORMAL LAND MARKETS
This questionnaire has been designed to assist in an ongoing research for the final year project report in Land Economics, Department of Construction Economics and Management (M.U.K) on the topic; Informal Land Markets in Uganda; Character and Operational Analysis. All information provided will be treated with strict confidentiality. Name Age Occupation... 1. Are you a resident here or just visiting?(tick) Yes No 2. Are you employed?(tick) Yes No

3. If yes where are you employed?(tick) a) Within b) In town 4. Do you own land?(tick) Yes No 5. How do you get information on land transactions?(tick) a) Family networks b) Neighbourhoods c) others 6. If the answer in 5 is yes, is your land registered?(tick) Yes No

7. If yes what proof do you have for your land? (tick) a) certificate of title b) Sales agreement c) Others specify..

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8. If your answer in 5is no, what do you attribute your failure of registration to?(tick) a) It is costly b) It takes a lot of time c) I am not aware of the registration guidelines d) Thats how we own land here Others specify.. 9. Given your status of land ownership, are you able to access credit from financial institutions using your land as security?(tick) Yes No 10. Are you satisfied with the way the informal land markets operate in your region?(tick) Yes No 11. If your answer is No, what do you recommend should be done to improve the land market?(tick) a) reduce on the costs on formal land registration b) provide streamlined procedures on land registration c) clear documentation in informal land registration d) sensitise the public on formal land registration Others specify..

Thank you for your cooperation.

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