That 'Cheap' Plot of Land in Kampala Has a Dark Secret: The 'Kibanja' Holder Nightmare

In the Buganda region, Mailo land is a common tenure system. A buyer sees a great price, purchases the land, gets a title deed, and thinks they are the outright owner. Then the nightmare begins. They discover their land is occupied by 'bibanja' holders—lawful tenants with strong legal rights.

What is a Kibanja Holder?

Under Ugandan law, a kibanja holder is a person who has occupied the land for a long period, often with the consent of the original Mailo landowner. They are not illegal squatters; they are lawful occupants. The Land Act protects their right to live on and use the land.

The Landowner's Trap

When you buy Mailo land, you are buying the title, but you are also inheriting any lawful tenants on it. You cannot evict them without fair compensation, which can be a significant, unforeseen cost. They have the right to occupy their kibanja, and you, the landowner, have the right to collect a nominal annual rent (busuulu) from them. This creates a situation of dual ownership that is a minefield for uninformed buyers.

How to Avoid The Nightmare

• Physical Inspection is Non-Negotiable: Before you even look at the paperwork, walk the entire plot of land. Are there homes? Are there crops? Are there signs of occupation?
• Talk to the Neighbours and LC1: Local council leaders and neighbours will know the history of the land and who lives on it.
• Engage a Good Lawyer: A lawyer specializing in land transactions will know exactly what questions to ask and how to structure the purchase agreement to account for any tenants.
• Budget for Compensation: If there are tenants and you want vacant possession, the cost of compensating them must be part of your initial budget.

A "cheap" plot of Mailo land is often cheap for a reason. Ignoring the rights of bibanja holders is the fastest way to lose your entire investment in legal fees and frustration.