An assessment of the role of formalization of informal land rights on land market : case study : Kitumba Sub-County, Kabale District, Uganda

Abstract

Land rights in many developing countries, like Uganda, are informal, leading to land insecurity and hindering economic growth. While efforts are underway to formalize Land rights, the impact on the Land Market remains unclear. This study investigates how Land rights formalization affects the Land Market in Kitumba Sub County, Uganda. Specifically, it explores how formalization influences land values within the market. A mixed-methods approach incorporating both quantitative and qualitative data collection was employed. Data collection involved questionnaires, interviews, and document reviews. Quantitative data was analyzed using descriptive statistics and correlation analysis, while qualitative data was analyzed thematically and to ensure data quality, pre-testing of instruments was conducted. This study explores how formalizing land rights in Kitumba Sub County, Uganda, impacts the local Land Market. While a significant majority (77.7%) of landowners are aware of recent formalization efforts, a concerning portion (22.3%) remains unaware, highlighting a need for improved communication and outreach. There are consistencies in knowledge among land officials tasked with managing the process as 80% of them clearly stated the process that was used and only one official who did not actively participate in the process was not sure representing only 20%. Challenges include unclear property rights, lengthy procedures, limited awareness, legal barriers, and difficulty accessing financing. Despite these, land values increased after receiving ownership certificates (CCOs) due to factors like secure ownership and attracting investors. Formalization has a positive medium correlation on land values, but other factors like location also play a role. Additionally, over 92% of respondents observed property value increases after receiving Certificates of Customary Ownership (CCOs). Formalization likely boosts values by establishing secure ownership, attracting investors, and potentially increasing access to financing. Correlation analysis confirmed a statistically significant positive correlation between formalization and land values, although other factors like location also play a role. The study recommends a comprehensive approach to strengthen formalization processes, improve communication and awareness, and address legal and procedural barriers.