Nairobi County Ramps Up Land Rate Collection Efforts

The Nairobi County Government is implementing a multi-pronged approach to increase revenue generated from land rates.

This initiative aims to bridge the financial gap required for smooth county operations. According to the Nairobi City County Fiscal Strategy paper for 2023, the county seeks to boost land rate collection from Sh 2.48 billion to Sh 7.03 billion. The report highlights that the highest collection on record was Sh 3.16 billion in the 2015/16 financial year. The projected increase to Sh 7.03 billion represents a substantial leap from the most recent collection figure.

A critical element of the strategy is the adoption of a modern Geographic Information System (GIS) based valuation roll. This will replace the outdated system reliant on 1982 land values, ensuring a more accurate reflection of current property worth. This upgrade is anticipated to yield an additional Sh 1 billion annually. Furthermore, the county government plans to integrate roughly 100,000 newly titled properties into the land rates database. These properties are expected to generate an extra Sh 1 billion in revenue, with an average annual charge of Sh 10,000 per holding.

Debt collection efforts will also be intensified to recover at least 20% of outstanding land rate payments. The strategy encompasses both private and public property owners who are in arrears. For government debts, the county will leverage the Inter-Governmental Relations Act. This act promotes collaboration and dispute resolution between national and county governments. Additionally, the Council of Governors (COG) will be called upon for assistance.

It's worth noting that Governor Sakaja has previously attempted to incentivize land rate settlement. A 100% waiver program was launched in December 2023 and extended until January 2024. However, this policy coincided with an increase in the land rate calculation to 0.115% of the current value for undeveloped land. Governor Sakaja has emphasized the need for rates to reflect accurate property values, as some landowners are paying significantly less for high-value properties under the outdated system.