Nairobi Governor Johnson Sakaja on Thursday extended the penalty waiver on land rates in Nairobi County in a move geared at enhancing compliance and netting more revenue for the devolved unit.
In a statement, the Governor announced that his administration had decided to extend the deadline to January 31, 2024, from the initial date of December 31.
"Enjoy the 100 per cent waiver and regularise the status of your property. Enforcement on default will commence in February," he stated.
Sakaja had advised all landlords to take advantage of the waiver which was aimed at allowing landowners and building managers ample time to pay any outstanding penalty.
Due to the county government's no cash policy, Sakaja advised the parties to make their payment through the county's officials' bank accounts or a USSD code, *647#.
Per the law, all those who fail to clear the pending arrears will face a public auction and prosecution to allow the county government to recover its dues.
Governor Sakaja has outlined an ambitious plan to collect Ksh19 billion following the announcement of new land rates. He is on record stating that the exponential growth of city properties has forced his administration to review the rates.
"Currently, some landowners pay a pittance for multimillion properties. We want to ensure what people pay is commensurate with the current value," he stated in a past interview.
According to Sakaja the move to collect more will help the county set up numerous development projects across the city.
Meanwhile, the new rates set to be introduced in January will affect residential, commercial, and agricultural plots. This may see apartment owners hike rents to factor in the new charges.
According to prevailing land rates, those in possession of parcels below 0.1 hectares are required to pay Ksh2,560, while those with land ranging between 0.1 hectares and 0.2 hectares are required to part with Ksh3,200 annually.
Conversely, landowners with holdings between 0.2 hectares and 0.4 hectares incur an annual fee of Ksh4,000, while those possessing land exceeding 0.4 hectares are obligated to pay Ksh4,800.
These rates align with the provisions of the Valuation for Rating Act and the Rating Act.
