Commercial banks in Kenya are considering formally empaneling licensed land surveyors to assist in land identification and verification during the valuation of properties offered as collateral.
This development follows a formal letter from the Institution of Surveyors of Kenya (ISK) to banks, a copy of which was shared with Property Weekly Africa. In the letter, ISK formally requested financial institutions to consider empaneling licensed land surveyors, citing the critical role they play in confirming the accuracy of land boundaries, parcel identifiers, and alignment of physical property with registered land records.
Some banks are already evaluating the establishment of internal panels for licensed land surveyors, similar to their existing valuer panels. Additionally, Property Weekly Africa has confirmed that some banks are considering giving preference to surveying firms that have registered valuers as part of their directorship or management. The rationale is that such firms are better positioned to provide coordinated services, especially in assignments that require both surveying and valuation input, such as sectional properties and phased developments.
The proposal was also a key agenda item during a high-level meeting held on 26th February 2025 involving ISK, the Valuers Registration Board (VRB), the Kenya Bankers Association (KBA), and representatives from leading financial institutions. The meeting focused on strengthening professional standards in the valuation of loan securities, with special attention to the need for collaboration between valuers and surveyors.
ISK has encouraged financial institutions to directly engage licensed surveyors listed on the public digital registry maintained by the Land Surveyors Board (LSB). This would help eliminate the use of unverified intermediaries, reduce costs, and promote ethical practices. ISK emphasized that proper land verification must form a core part of loan processing, particularly in light of ongoing implementation of the Sectional Properties Act, 2020.
The Act requires preparation and registration of sectional plans before property transfers or financing. Land surveyors are central to this process, and ISK warned that bypassing proper survey procedures exposes banks to risks of lending against flawed securities.
A standing committee made up of representatives from banks, ISK, VRB, and KBA is being formed to follow up on these recommendations. The committee is scheduled to meet quarterly in March, May, and July 2025, with a wider industry meeting expected in August 2025.
