Non-Compliant Nairobi Landowners Face Auctions as County Cracks Down on Taxes

Non-Compliant Nairobi Landowners Face Auctions as County Cracks Down on Taxes

Nairobi Governor Johnson Sakaja has issued a stern warning to landowners within the county who are delinquent in their property tax payments.

The county government has set an April 30 deadline after which the county will begin enforcing stringent measures, including property auctions and receivership. Speaking on Citizen TV, Sakaja highlighted the critical need for improved compliance to bolster service delivery in Kenya's capital city. The governor has revealed that only 20 percent of Nairobi's 250,000 registered land and property owners regularly meet their tax obligations, leaving a substantial revenue gap. 

“In Nairobi, we have 250,000 pieces of land, but only 50,000 landowners are paying land rates. That is not sustainable,” Sakaja stated.

To rectify this situation, Sakaja announced the strict enforcement of the Rating Act, which empowers the county to take decisive action against defaulters. Properties of non-compliant landowners will face auction or receivership if payments are not made by the deadline. Notably, the governor has ruled out any waivers on land rate penalties for this year, marking a departure from previous practices.

Sakaja explains that the problem of non-compliance is partly due to a culture of anticipating waivers, which he believes fosters defaulting behaviour. The persistent non-payment of property taxes has significantly hindered the county’s ability to deliver essential services, a concern frequently raised by Nairobi residents. Sakaja emphasises that effective service delivery is a shared responsibility between the county government and its citizens, and increased compliance is crucial to restoring the county's capacity to meet its obligations to Nairobians.

In contrast to Nairobi's hardline approach, other counties, such as Mombasa, Kilifi, and Taita Taveta, have opted for more lenient strategies by offering waivers and discounts to incentivise payment. Mombasa County recently announced a one-month waiver on penalties and interest for unpaid land rates and single business permits, effective from April 14 to May 14. Similarly, Kilifi County declared a temporary waiver on penalties for businesses and property owners from May 1 to May 31. 

Taita Taveta County chose a partial waiver, granting a 40 percent reduction on unpaid land rates if the remaining 60 percent is paid in full by May 30. Sakaja has criticised these practices, arguing that they undermine long-term compliance and fairness. Nairobi County's strategy focuses on instilling discipline among defaulters and alleviating the tax burden on compliant landowners. The governor's approach is rooted in the belief that equitable tax collection is essential for sustainable urban development. 

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