Assessing the impact of the leasehold tenure on economic development in Kiboga district.

Abstract

Land tenure plays a big role in the economic development of any nation or particular area and proper utilization of the various forms can greatly enhance both the economic and social wellbeing of the people. This study sought to investigate the impact of the leasehold tenure system on economic development in Kiboga District, Uganda, focusing on leaseholds granted on formerly public land. Using a mixed-methods approach, the research combines legal and policy analysis of Uganda’s land governance framework with field surveys of 56 leasehold farmers and business owners in Bukomero and Ddwaniro sub-counties. Quantitative data on income, credit access, and investment patterns were analyzed using SPSS, while qualitative insights from key informant interviews with land officials provided context on institutional challenges. Despite these constraints, leasehold tenure has had a positive effect on economic development. A majority of respondents (84%) reported increased land-based investments and 88% noted improvements in income and job opportunities. However, high costs, lease insecurity, limited access to credit, and poor infrastructure were identified as key barriers to maximizing these benefits. The study concludes that leasehold tenure can significantly contribute to local economic development if supported by efficient institutions, affordable lease terms, and improved stakeholder engagement. Policy recommendations include reducing lease transaction costs, improving transparency in land administration, offering legal education to leaseholders, and exploring tenure reform options such as converting long-term leases to freehold.