Apartment Blocks in Nyayo Estate
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Individuals in Nairobi who own apartments in blocks and share common areas within their units will be required to pay land rates to the county government from January 2024.
The change is in line with the 2021 Sectional Properties Act which is currently in force. The rates to be levied will be determined based on the size and location of each individual unit. As stated in the Act, every owner possessing a title deed is obligated to settle their own rates. Moreover, the residents of these apartments will bear the responsibility of paying rates for communal areas like swimming pools, parking lots, and playgrounds.
Apartment owners are required to create separate accounts for rate payments. In a recent interview on Citizen TV, Stephen Mwangi, the Nairobi County CEC for Built Environment and Urban Planning, highlighted the government's intention to avoid double taxation and ensure that residents are not burdened by excessive taxes. He clarified that units must pay rates because ownership has been transferred to the buyer, and as a buyer, the unit is already registered with a title deed.
The Government Finance Act 2022, which Nairobi Governor Johnson Sakaja approved in the previous year, includes provisions for land rates on residential, commercial, and agricultural properties. Under this act, landowners are obligated to remit 0.115 per cent of their land's value. Additionally, the legislation stipulates that individuals who fail to pay their land rates by March 31st annually will be liable for interest charges. As per the law, those who do not meet the deadline will be subjected to a monthly interest rate of three per cent on the outstanding amount until it is fully
Also, the local government has implemented a system of appraisal to ascertain the rates in compliance with the legislation. For instance, land in Karen will be assessed at a value ranging from Sh20 million to Sh35 million per acre, while land in Westlands will have a similar valuation. In Upperhill, the valuation per acre will fall within the range of Sh200 million to Sh300 million. As for Mihango, Ruthimitu, Waithaka, and Pumwani, the land in these areas will be valued at approximately Sh20 million to Sh30 million per acre.
Comments
Rent increase loading. Sorry tenants
The landlord pays the ownership costs, including taxes, insurance, maintenance, and taxes.
Land is over priced and that impedes development. Taxing might bring prices to normal level nationwide
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