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Real Estate

Nairobi County Intensifies Crackdown on Unpaid Land Rates

Nairobi County Intensifies Crackdown on Unpaid Land Rates
Nairobi County Intensifies Crackdown on Unpaid Land Rates

The Nairobi County Government, under the leadership of Governor Johnson Sakaja, has escalated its campaign to recover unpaid land rates as the financial year approaches its conclusion. 

With substantial arrears threatening the provision of essential city services, the county is enforcing stringent measures, including property clamping, to compel compliance from defaulting landowners. Speaking at a recent event in the Industrial Area, Governor Sakaja defended the county's revenue collection strategy, emphasising its importance in ensuring equitable and sustainable municipal financing. 

He acknowledged concerns surrounding the clamping of properties but asserted that the initiative is justified by the significant disparity between diligent small-scale traders and affluent property owners who evade their financial responsibilities. The intensified enforcement actions are part of a broader effort to strengthen the county's financial position as the fiscal year concludes. 

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"It is unfair that a small-scale trader, the Mama Mboga who earns a modest income, pays her dues daily in the market while people residing in high-end estates and owning major buildings fail to pay a single shilling in land rates," Sakaja said. "We all demand better services, but these services cannot be provided if we are not contributing."

Governor Sakaja has made it clear that the crackdown will persist until universal compliance is achieved, with no exemptions for individuals or businesses. Beyond land rates, the county is also addressing unpaid rent in county-owned houses. Governor Sakaja has revealed that some occupants had accumulated arrears spanning as long as 15 years, placing a significant burden on county resources and hindering service delivery.

The scale of non-compliance is considerable. Out of Nairobi's 255,000 registered land parcels, only 50,000 are actively paying land rates. This limited compliance has resulted in substantial revenue losses, prompting the current administration to intensify collection efforts.

Governor Sakaja has also advocated for increased financial support for Nairobi's devolved government, arguing that funding should be proportional to the city's size and economic significance. He contrasts Nairobi's budget with that of Paris, noting that the French capital operates on an annual budget of Ksh132 billion for its 2 million residents, while Nairobi, with over 7 million inhabitants, manages significantly less. 

According to the governor, achieving world-class city services is impossible without adequate funding and improved compliance with financial obligations. City Hall's renewed focus on revenue collection is being spearheaded by the county's revenue department, under Receiver of Revenue Tiras Njoroge. 

The department has committed to a vigorous collection drive throughout June, prioritising overdue land rates with the goal of recovering over Ksh10 billion in uncollected funds. These funds, according to Njoroge, are crucial for the transformation and sustained development of Nairobi.

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