Lands Cabinet Secretary Alice Wahome on Tuesday explained the rationale behind the government's proposal to impose a levy on freehold land within urban areas and cities.
Speaking during an interview on Spice FM, the CS explained that the withdrawn Lands Amendment Bill 2023 was aimed at creating equity among Kenyans who own land in cities such as Nairobi.
She revealed that most freehold land in Nairobi was in leafy suburbs such as Karen, Muthaiga and Lavington. Wahome detailed that freehold system was inherited from the colonial administration and favoured white settlers.
Therefore, freehold landowners in such suburbs only pay land rates to the County Government.
Conversely, land in Eastlands and other middle-class estates is owned on a leasehold tenure with the owners paying land rates to the county governments in addition to land rent which is paid to the national government.
Therefore, the CS explained that it was unfair that some landowners in Nairobi were paying more than their counterparts in posh estates.
"In the cities, you enjoy extra services that are funded by the taxpayer. It cannot be okay for some people to pay for land within the urban areas and some people do not pay.
"For instance, in Buruburu one will pay land rate to the county government and land rent to the national government. We thought it was time to address the inequality," she explained.
On the other hand, Wahome acknowledged that there was a public uproar over the proposals adding that there was a lot of misinformation regarding the proposals.
For starters, the CS indicated that the law was not aimed at changing freehold land to leasehold lands.
She added that the proposals were only targeting land in urban areas and cities. Wahome added that the government was to engage Kenyans in specific urban areas where the levy would have applied.
"It was misunderstood that we were going to be the freehold tenure. We cannot change your tenure unless you apply," she added.
Way Forward
After the Bill's withdrawal by National Assembly Majority Leader Kimani Ichung'wah, the CS detailed that her ministry would continue to engage Kenyans to chart a way forward.
In CS Wahome's view, the piece of legislation was drafted based on the argument that it would help create equality among all landowners in urban areas.
The Cabinet Secretary stressed that the government would explain the proposed legislation in great detail in the event the government contemplates reviving it in future.
