Nairobi landowners will start paying
new land rates from January 1 next year, following the release of a notice by
the county government.
The rates were revised under the
National Rating Act, 2024.
Issued by urban planning executive
Patrick Mbogo, the updated charges will apply on flat rate zones and properties
assessed under the 2019 Draft Valuation Roll.
Properties located in flat rate
zones will now be charged between Sh2,560 and Sh4,800 per year.
Land measuring up to 0.1 hectares
will attract a rate of Sh2,560 annually, while land exceeding 0.4 hectares will
be charged Sh4,800 per year.
The reviewed rates come as Governor Johnson
Sakaja urged owners of illegal or unapproved buildings to take advantage of the
window provided to regularise their developments.
He warned that strict legal action
will follow once the period under the Regularisation of Unauthorised
Development Act, 2025 lapses.
For properties whose rates are
determined through valuation, including residential, commercial and
agricultural plots, the charge will be 0.115 per cent of the unimproved site
value per year.
The unimproved site value refers to
the market value of the land, excluding buildings or developments.
The county government outlined
conditions that will apply during the implementation of the new rates.
Landowners whose new rates fall
below the 2022 levels will continue paying the 2022 rates, while those whose
revised charges are more than double the 2022 figures will pay double the 2022
rates.
Property owners who had lodged
objections to the 2019 Draft Valuation Roll will not be affected immediately
and will continue paying the old rates until their cases are heard and
determined by the valuation board.
In addition, landowners whose
parcels were not included or valued in the 2019 draft roll have been advised to
contact the chief valuer at City Hall for assessment and inclusion.
The county has also directed
sectional titleholders such as apartment owners to open individual land rate
accounts.
This requirement is intended to
improve compliance, ensure accurate billing and streamline collection of land
rates across multiple property ownerships.
Residents seeking clarification
have been encouraged to reach out to the Nairobi city county customer care centre
through the provided contact numbers or email address.
They may also access their land
rate invoices online through the Nairobi e-services portal at
nairobiservices.go.ke.
Land rates form a significant
component of Nairobi’s internal revenue generation.
The county’s own-source revenue is
derived from six main streams: parking fees, land rates, single business
permits, house rents, building permits, billboards and advertisements.
These sources together contribute
nearly 80 per cent of the county’s annual revenue.
Among these, land rates remain the
largest single source, accounting for approximately 25 per cent of the total
revenue collected by the Nairobi government.
The review of land rates is part of
the county’s broader effort to enhance revenue mobilisation and align property
valuations with prevailing market conditions.
The implementation of the new
structure in 2026 will mark the first major adjustment since the development of
the 2019 Draft Valuation Roll.
Instant
Analysis:
The new rates could boost Nairobi’s revenue base while addressing outdated
property valuations. However, the impact on property owners will depend on how
fairly and transparently the county implements the 2019 valuation framework.
