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The cost of owning property in Nairobi is set to rise significantly effective 2025 as new land rates come into effect, potentially driving up rental costs and adding to residents’ financial burdens. The hike stems from major changes in property rate collection systems introduced by Nairobi City Hall, primarily targeting sectional property owners.

Sectional properties, including apartments, units, and multi-dwelling complexes, will now be assessed individually rather than collectively, as was previously the case. Patrick Mbogo, the CECM for Built Environment and Urban Planning said property owners must open individual rate accounts for each sectional title.

“Be notified that sectional title holders must now own individual rates accounts,” he stated in a public notice. Under the new directive, every sectional property will be valued and billed separately. This change aligns with the 2019 Draft Valuation Roll and is expected to streamline rate collection, ensure compliance, and resolve disputes over collective payments. However, it also introduces new financial dynamics.

For instance, units with higher valuations relative to their prior collective assessments will likely face increased rates, while those with lower valuations might see reduced payments. This shift means the financial impact will vary across properties, potentially benefiting some owners while hitting others hard.

A notable example is an apartment block with varying unit sizes. Previously, land rates were collectively divided among owners, regardless of unit size or value. Now, larger or more valuable units will bear higher costs, reflecting their market valuation, while smaller units may pay less. Owners who objected to the 2019 Draft Valuation Roll are temporarily exempt from the new rates. These individuals and entities will continue paying the old rates until their cases are resolved in the Valuation Court. Similarly, land parcels not listed in the Draft Valuation Roll require owners to contact the Chief Valuer at City Hall for further guidance.

In addition to the individual billing changes, residential, commercial, and agricultural plots will face a 0.115 per cent increase in valuation rates. This adjustment has raised concerns among residents and landlords about potential knock-on effects, such as rent hikes.