Reimagining Property Inheritance: Museveni Urges Families to Form Companies

News -->
Reimagining Property Inheritance: Museveni Urges Families to Form Companies
President Museveni in Butebo recently.

Andrew Byaruhanga, Executive Director of Resource Right Africa, says the culture of subdividing the deceased’s estate is legally mandated, especially for parents who die without a will. He shared his personal experience, having struggled with an inheritance issue for eight years. His family inherited land from their grandfather, which they collectively used to plant a woodlot that earned the family Shs24 million upon sale.

In the Ugandan and broader African context, it is a common cultural practice for a father's property to be divided among his children, with each receiving a portion. This tradition of inheritance is passed down through generations, and as the land is further divided among descendants, the individual shares become increasingly smaller. This process often leads to challenges, such as reduced agricultural productivity and limited economic potential, as the land becomes too fragmented to be utilized effectively.

The cultural importance of land inheritance can sometimes clash with modern economic needs, leading to discussions on how best to preserve family wealth and ensure sustainable development.

President Yoweri Museveni while addressing a gathering at a thanksgiving ceremony for Science, Technology, and Innovation Minister Monica Musenero at Petete Primary School in Butebo District emphasized the importance of avoiding the fragmentation of family property, urging communities to consolidate assets under a family company to ensure better management and increased productivity. He made these remarks.

"When the head of the family goes to heaven, don’t fragment the property; work as a company. When you sell, deduct expenses and share the profit,"

Museveni explained. He added that from the family company, members can then meet individual needs or form their own separate companies using proceeds from the family company.

Division of land among children often leads to disputes and strains family bonds as each member strives for what they perceive as a fair share resulting in long-term tensions, fractured relationships, and even legal battles, undermining the unity and cooperation that should ideally prevail within a family.

Property that should enhance family wealth often becomes a curse due to common customary beliefs.

For example, a property dispute in Mbale City has severely divided a family, with allegations that a mother and her son unfairly seized a prime property, sidelining the other children.

The conflict escalated into violence, resulting in the imprisonment and subsequent death of one family member in Ngenge Prison. This tragic event has further deepened the family's rift, highlighting the severe impact of property disputes on family relationships.

President Museveni's call to consolidate family assets under a family company seeks to address the issues of land fragmentation and foster family cohesion, offering a potential solution to preserve and grow family wealth across generations.

Edmund Nangulu, a legal practitioner based in Mbale, attributes the fragmentation of property to two main factors: the growing population and customary systems. He notes that the preference for individual land ownership is strongly influenced by traditional practices and the prevalent belief in witchcraft. These factors contribute to suspicion and mistrust among family members, especially in polygamous families, exacerbating the issue of property fragmentation.

Financial constraints significantly worsen the problem, as many families lack the resources for large-scale farming. In Bulambuli district, for instance, large-scale agriculture is typically undertaken by outsiders, while local landowners often lease their land due to financial limitations. Edmund Nangulu suggests addressing these issues through targeted support, such as offering tractor services and agricultural inputs to landowners with considerable land holdings, which could enhance local farming capabilities.

Andrew Byaruhanga, Executive Director of Resource Right Africa, says the culture of subdividing the deceased’s estate is legally mandated, especially for parents who die without a will. He shared his personal experience, having struggled with an inheritance issue for eight years. His family inherited land from their grandfather, which they collectively used to plant a woodlot that earned the family Shs24 million upon sale.

The money was shared among family members. However, his efforts to prevent subdivision were thwarted by the legal requirements that apply to customarily owned land.

Secondly, the cultural setup in Africa, where joint ventures are not commonly embraced, also undermines this vision. Even where parents have substantial assets, including companies, children often push for division rather than collective ownership, unlike in other communities, such as the Indian community, where managing family property collectively is more common.

The customary land tenure system aligns with President Museveni’s vision for managing family assets where family members collectively own land with their names on the certificate of title. This arrangement grants all members the right to use the land but restricts the right to sell, helping to prevent fragmentation. However, the Certificate of Customary Ownership (CCO), which formalizes this arrangement, is not widely known or promoted by the government. The absence of a dedicated registry for CCOs in the Ministry of Lands further complicates its implementation.

With the right legal and cultural shifts, the President’s vision could lead to more sustainable management of family assets across generations.

Reader's Comments

RELATED ARTICLES

LATEST STORIES