MCAs seek means for paying rates for city county disputed land
By Alvin.Mwangi, February 28, 2022Nairobi Ward Reps have proposed the need to create mechanisms to facilitate payment of rates for disputed land.
This follows concerns that many parcels of land within Nairobi do not have title deeds or other ownership documents.
In a notice of motion, Majority Whip and Mihang’o MCA Paul Kados said many pieces of land have ownership disputes, some pending in courts and other dispute resolutions tribunals and institutions, which take years to be resolved.
“Recognising many of such parcels of land have been developed with the owners of such land willing to pay land rates. The law requires rates to be paid by whoever is claiming ownership of any such property,” he said. Kados said many landowners face difficulties, especially during the collection of rates by the Kenya Revenue Authority (KRA).
County, through the Deed of Transfer of Functions engaged the services of KRA to collect rates.
“Demand for these documents has seen many landholders remain unable to provide the documents hence are barred from paying rates. Though these parties remain willing to pay rates during the penalty waiver arrangements,” Kados said.
Over the years, the county government has been giving rent waivers to those residing in county houses.
Nairobi county has 17,000 houses in Maringo, Uhuru, Kaloleni, Jericho, Buruburu, Kariobangi South, Ziwani and Jerusalem where tenants pay between Sh2,000 and Sh20,000 monthly depending on location.
Property owners
Section 7 of the Nairobi City County Waiver Administration Act, 2013 says every waiver shall be reported to the Assembly and published in the gazette notice not more than 14 days after it is granted.
Nairobi keeps losing revenue due to the aforesaid failure to pay rates owing to the demands by KRA.
In the financial year ended June 30, 2021, City Hall collected Sh2.76 billion from land rates against a target of Sh5 billion.
Land rates are the top own-source revenue earner at City Hall accounting for about 25 per cent of revenue collected by the county.
However, with the new valuation roll in place, the county government targets to more than double its land rates collection in the last financial year as it looks at collecting about Sh6 billion.
Property owners have been paying their rates at 25 per cent of the Unimproved Site Value with the valuation that was carried out in the 1980s, which City Hall said has seen it lose on the appreciation of plots.