As expropriation gets under way for property owners affected by the Giporoso–Masaka road expansion, at least 530 properties are expected to be impacted.
City of Kigali Mayor Samuel Dusengiyumva has said construction could begin in February, noting that only a few issues have arisen with residents facing expropriation.
When the government or another authorised public body expropriates property in the public interest, the value of that property must be determined in accordance with Law No. 32/2015 governing expropriation.
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The New Times highlights the key considerations used in determining property value to ensure fair compensation, as outlined in the law and explained by certified property valuers.
Properties subject to valuation
According to Article 27 of the law, properties eligible for valuation and fair compensation include land, activities carried out on the land, and compensation for disruption caused by expropriation.
Activities and improvements taken into account include buildings, crops, forests and other long-term developments, said Eng. Albert Rene Yuli Nahimana, a certified valuer.
"Trees have significant value because they contribute to the air we breathe and serve both economic and ornamental purposes in rural and urban areas,” he said.
Certified valuers and land reference prices
Valuation of land and property is conducted by professionals certified by the Institute of Real Property Valuers in Rwanda (IRPV).
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The institute is mandated to determine annual land reference values and prices, based on prevailing market rates, as stipulated in Article 22 of Law No. 32/2015. These values must be reviewed annually and approved by the Regulatory Council for Real Property Valuation.
The Rwanda Land Reference Prices, available on irpv.rw, are calculated per square metre and apply to land only. They do not include the value of buildings or other developments, which must be assessed separately by a professional valuer.
"The prices should be reviewed every year because land values continue to increase,” Nahimana said.
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Criteria for fair compensation
Article 28 of the law states that fair compensation is based on market value and considers factors such as land size, location and the nature of the property.
Whether land is agricultural or urban, developed or undeveloped, and used for residential, commercial or industrial purposes directly affects its valuation.
"A plot near a paved road with access to water and electricity is worth more. Properties in developed areas with multi-storey buildings are more valuable than those in undeveloped zones,” Nahimana explained.
Importance of location
Location is a key determinant of value. Land in urban or high-demand areas generally commands higher market prices than land in rural or low-demand zones.
Other factors considered in determining land prices include accessibility, availability of public transport, population density, topography, existing and planned land use, proximity to amenities and infrastructure such as schools, health facilities, markets, water and electricity networks, as well as proximity to water bodies.
Building materials and lifespan
For developed properties, the type of construction also matters. Houses built with unfired adobe bricks (rukarakara) are valued differently from those built with burnt clay bricks, even when located in the same area.
Roofing materials and the age of a building further influence valuation.
"The lifespan of a building matters; old and new structures are not valued the same,” Nahimana said.
Compensation for disruption
In addition to the value of land and developments, expropriated persons are entitled to compensation for disruption, calculated at 5 per cent of the total property value.
Valuation timeline and disputes
Land and property valuation must be completed within 30 days, with a possible extension of 15 days upon request and approval by the authorising body.
Property owners may accept or reject the valuation. If dissatisfied, they may commission a counter-valuation by a certified valuer at their own cost.
If disagreement persists, the matter can be referred to a competent court. However, compensation based on the expropriator’s valuation is paid to avoid project delays.
Dissatisfied owners must submit written grounds for objection within seven days of receiving the approved valuation. A counter-assessment must be completed within 10 days, after which the expropriator has five working days to make a decision. If accepted, the counter-valuation replaces the initial assessment.
Payment of fair compensation
For expropriation to be authorised, fair compensation must be paid before the affected person relocates.
Approved compensation must be paid within 120 days from the date of approval by the District Council, City of Kigali Council or the relevant ministry. Failure to pay within this period renders the expropriation null and void, unless otherwise agreed by both parties.
If an expropriator withdraws a project after valuation or fails to pay compensation, they are required to pay an additional 5 per cent of the assessed compensation.
Mode of payment
Monetary compensation is deposited into a bank or financial institution account chosen by the expropriated person.
In cases of joint ownership, payment is made into a jointly agreed account requiring authorisation from all co-owners for withdrawals. If co-owners disagree over their respective rights, the funds are deposited into the public treasury until the dispute is resolved.
Where property is encumbered by a bank guarantee, compensation is deposited into the account designated by the lending institution.
If an expropriated person fails to provide account details within 30 days of notification, the compensation is deposited into the public treasury, from which it can later be withdrawn.
For abandoned properties, compensation is held in a blocked account in accordance with relevant laws.