Nairobi County Finance Executive Charles Kerich has raised concerns over the risk of over 285,000 property and landowners losing their properties due to defaulting on land rates.
Speaking on Monday, Kerich noted discrepancies in the number of properties recorded by the county compared to records at the Lands Ministry. While the county’s records show 177,000 properties, the Lands Ministry indicates over 285,000 properties.
Kerich stated that they are working to rectify this disparity by engaging with the ministry to ensure that the over 100,000 properties not captured in county records are incorporated.
He emphasized that rather than increasing rates to cover deficits, their approach is to widen the base to collect more revenue from land rates. This underscores the importance of accurate record-keeping and collaboration between government agencies to ensure effective revenue collection and property ownership management.
“Meaning that they have another 100,000 properties that we do not have and therefore we have begun a conversation with the Ministry of Lands for integration,” he said.
“So that if there is any subdivision going on, as soon as it’s done at the ministry we get the information real-time. The whole idea is to bring this other 100,000 into the roll and start charging them rates so that you meet your target without burdening whoever is already compliant.”
His remarks come a few days after the county listed all property owners who have defaulted on land rates.
The county government said should the owners fail to make the required payments, their properties will be auctioned.
“The owners of the following listed properties are advised to ensure that they pay outstanding land rates arrears owed to Nairobi City County Government otherwise the properties shall be subject to penalties, interest and enforcement actions including auction by the Nairobi City County Government,” the notice reads.
Land rates represent the primary source of own-source revenue for Nairobi County, constituting approximately 25 percent of the total revenue collected by the county government.
Kerich acknowledged that some individuals appear on the defaulters list due to the failure to transfer property ownership after selling their properties.
This oversight serves as a reminder to property owners to rectify such issues in cases where ownership changes have occurred but have not been updated in the records. By addressing these discrepancies, the county aims to ensure accurate record-keeping and enhance revenue collection efficiency.
“Go through it, find your property, if it’s something you had sold deal with the person you had sold it to and then we can have a conversation after that because for sure the enforcement will come,” he said.
