New Bill Targets All Landlords With 2 Mandatory Changes

An aerial photo of the Acacia real estate project undertaken by the Grit Real Estate Income Group in Mozambique in August 2018.
An aerial photo of the Acacia real estate project undertaken by the Grit Real Estate Income Group in Mozambique in August 2018.
Photo
Grit Real Estate

A new Bill, backed by North Mugirango MP, Joash Nyamoko, seeks to regulate land systems and property ownership in Kenya. 

Speaking on the floor of Parliament on Tuesday, July 25, Nyamoko, who acts as the chairman of the National Assembly Committee on Lands, noted that the Bill spells out the mechanism for how the properties will be evaluated.

The MP also wants the levies the state imposes on land across the country clearly outlined. For instance, the recommendations pave the way for creating a county-based tribunal consisting of three members to hear and determine all matters relating to valuation or rating.

Guided by a new uniform law provided by the national government, the counties will be expected to enhance levy collection by determining which entities are responsible for levying rates and how the revenue allocations will be distributed. 

The Committee on Lands Chair Joash Nyamoko
The Committee on Lands Chair Joash Nyamoko.
Photo
Joash Nyamoko

The directive will see the expansion of the levy base directly impacting individuals who own large tracts of land.

Nyamoko emphasised that it was necessary to streamline the sector to boost the revenue collected by counties, a departure from the current system where each county determines its rates.

"There is an element of the appointment of all valuers, and it will provide for establishing and determining powers of a National Rating Tribunal. This is something that we have not had. Even when we interacted with the Council of Governors, they had a proposal that it could have been better for them to set this tribunal up in the 47 counties, but we did not find it tenable.

"Currently, levying of property rates in Kenya lies on the valuation of rating acts enacted in 1966 and 1964 which are outdated and lack a clear legal framework in achieving optimal property rates," he stated.

The MP added that the provision hindered the counties from collecting optimum revenues. To remedy the situation, land valuers will be appointed to ensure that only qualified individuals are admitted into the sector.

As a result, landowners seeking valuation services will be expected to tap into the services of qualified valuers exclusively.

"(A study) determined that most of the revenues collected by county governments, the revenue collected from properties and land rates is not as attractive as what is usually collected from parking fees and health facilities," he explained.

"We will have a single legislation which will regulate the counties and national governments, unlike the case where you have various counties coming up with their rates which in many cases are variant," the MP added. 

Landowners who provide wrong information to mislead valuers will be subjected to penalties. The MPs have yet to agree on penalties stipulated by the Bill, including fines and jail terms. 

Property and landowners will thus be expected to streamline their activities should the Bill, which was presented in Parliament for the second reading in July 2023, sail through. 

A photo of Nyayo Estate in Nairobi County.
A photo of Nyayo Estate in Nairobi County.
Photo
Nyayo Estate Embakasi