City Affairs

Nairobi landowners face risks for defaulting rate payments

City Hall in Nairobi.(Photo: Handout)

By Maureen Kinyanjui | Friday, May 24, 2024

Land rates are the top own-source revenue earner in Nairobi accounting for about 25 per cent of revenue collected by the county government.

Thousands of land and property owners in Nairobi risk losing their properties for defaulting annual land rates to City Hall.

Nairobi County government on Friday issued a notice reminding the concerned to clear their outstanding arrears.

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The notice which was published in the local dailies included more than 200,000 names of land rate defaulters.

"The owners of the listed properties are advised to ensure that they pay outstanding land rates arrears owed to Nairobi City County Government otherwise the properties shall be subject to penalties, interest, and enforcement actions including auction by the Nairobi City County Government," reads the notice.

City Hall also extended the waiver period to June 20, 2024, after which enforcement actions will be enforced.

The defaulters have been reminded that the county operates a NO CASH policy in revenue collection.

"Customers are advised to make their payments through the Nairobi City County Government Revenue collection accounts once they obtain their invoices," reads the notice further.

They include; Cooperative Bank under account name Nairobi City County Revenue Collection, account number 01141709410000.

Also Equity Bank under account name Nairobi City County Revenue Collection, account number 1770279910476.

For easy access, residents can also use the USSD number *647#.

Nairobi's source revenue is normally generated by revenue streams.

The six key own-source revenue streams include parking fees, rates, single business permits, house rents, building permits, and, billboards and adverts accounting for close to 80 per cent of the county's annual own-source revenue.

Land rates are the top own-source revenue earner in Nairobi accounting for about 25 per cent of revenue collected by the county government.

Earlier this year, Nairobi Governor Johnson Sakaja announced a one-month extension to the penalty waiver on land rates.

Over time, the county government has been providing rent waivers to residents living in county-owned houses. These houses, numbering 17,000, are located in various neighbourhoods including Maringo, Uhuru, Kaloleni, Jericho, Buruburu, Kariobangi South, Ziwani, and Jerusalem. Rent for these houses ranges from Sh2,000 to Sh20,000 per month, depending on the location. In addition, the county owns houses in other areas within the city.

According to Section 7 of the Nairobi City County Waiver Administration Act of 2013, any rent waiver granted must be reported to the County Assembly and published in the gazette notice within 14 days of its issuance.

Reports indicate that Nairobi is experiencing a loss in revenue due to residents' failure to pay rates promptly.