Nairobi Governor Johnson Sakaja on Wednesday, April 23, issued a stern warning to landowners who default on payment of property taxes, adding that only 20 per cent of landowners in the county pay taxes.
While speaking on Citizen TV, Sakaja revealed that defaulters risk having their properties being put up for auction or receivership, citing the burden brought by the non-payers who form the bulk of the landowners.
The governor disclosed that out of 250,000 registered land and property owners, only 50,000 pay taxes, creating a great disparity in terms of revenue collection for the county.
“The biggest revenue earner in a city is property taxes. In Nairobi, we have 250,000 pieces of land, but only 50,000 landowners are paying land rates, so the burden falls on this small group. That is not sustainable,” Sakaja said.
To that effect, Sakaja cited new legislation, the Rating Act, giving him powers to put a spotlight on the defaulters and take stern action, such as auctioning in the event they fail to pay up.
Additionally, the governor revealed that the county will not have a waiver on payment of land rates as it was in the past, as it was an enabler of defaulting on payment. Sakaja stated that upon the expiry of a grace period at the end of this month, the county will enforce the legislation.
“We have extended the waiver to 30th April this month,” he said. “Now that we have complete data on the 250,000 pieces of land, it’s time to collect what is due so that we can deliver services as a county. We’ve given enough time—going forward, we shall enforce,” he averred.
The governor argued failure of payment resulted in reduced revenues for the county, which affected service delivery to Nairobians. This, in turn, brought numerous complaints from affected residents over the lack of services by the county.
Sakaja stressed that service delivery in the county was a shared responsibility, citing that implementation of the stringent measures was a way to drive up compliance.
“This year, there is no waiver on rates. Because what we end up having is some people paying up on time, while others wait for a waiver. It is not fair. And we will enforce it. We will clamp your buildings, collect on your behalf if we have to, and auction your property,” he charged.
Sakaja’s move is in contrast to counties such as Mombasa, Kilifi and Taita Taveta, which have all announced waivers on payment of property taxes. In an official notice dated April 17, Mombasa County announced that it was removing penalties and interest on land rates and single business permits for one month, between April 14 and May 14.
This means property owners and business permit holders in the county can clear their dues without extra charges for late payments.
In Taita Taveta, Governor Andrew Mwandime, through Elijah Mwanzo, the CECM for Finance and Economic Planning, announced that the county was granting a 40 per cent waiver on unpaid land rates. However, the waiver only applies if the remaining 60 per cent of the principal amount is fully paid by May 30.
On the other hand, Kilifi announced temporary waivers for businesses and property owners. In an official notice dated April 23, Mung'aro stated that penalties and interest on land rates and single business permits were removed for one month, between May 1 and May 31.
