Complaints during Expropriations in Rwanda: The Role Played by the Valuation Methods and Compensation Determination

The research focused on revealing the practice that causes complaints heard when expropriation projects are implemented in Rwanda. To understand the real problem of claims, the study investigated the valuation methods in use for compensation determination during expropriation projects. To get data for this study, the researcher used multiple case study strategies. Three valuers teaching valuations at the University of Rwanda were the first key informants to discuss the problem of expropriation. Then, ten directors of valuation companies and four expropriating agencies helped to get rich cases upon which results were generalized. Afterwards 36 registered and non-registered valuers were given questionnaires to complete and 449 residents that were expropriated also participated in the study. Findings show that the expropriation projects are not the ones causing complaints. It was revealed that people quarrel due to that they are not given chance to negotiate the mode of taking their properties and choose option of compensation payment. It was discovered that complaints are caused by compensation determination. The payment of compensation is delayed and losses are roughly calculated using 5% of taken property value. Researcher revealed that the complaints are also provoked by non-adherence of professional ethics, applicable valuation methods not suitable to come up with the fair compensation and non-inclusion of affected people in expropriation matters. The challenges during expropriation can be tackled well by making sure that people are well informed on compensation determination and let them choose which option of compensation payment they are comfortable with. Finally, the researcher recommended that instead of adding a 5% of disruption allowance roughly for losses incurred, they may calculate each type of losses separate and show to people what they include as disturbance payment and how they are calculated