The government has withdrawn a significant Bill that proposed an annual land levy for owners of freehold land near or within urban areas, in addition to existing land rates. National Assembly Majority Leader Kimani Ichung’wah has formally requested Speaker Moses Wetang’ula to withdraw the Land Laws (Amendment) Bill, 2023.
In a letter dated June 13, Ichung’wah informed the speaker that the decision was prompted by constitutional and legal concerns raised by the Bill. He stated that the executive had recommended addressing and resolving these issues before proceeding with further consideration.
“‘Having consulted with the relevant stakeholders, this is to confirm that the majority party has withdrawn the bill,” reads Ichung’wah’s letter in part.
“I request that the House business committee be notified of the withdrawal of the bill and that no further consideration of the bill should be undertaken.”
The proposed legislation sparked protests and faced criticism, including from the National Land Commission (NLC), which argued it would lead to double taxation. Homeowners on ancestral lands near cities like Dagoretti in Nairobi and towns in Kiambu were among those expected to bear the burden of additional levies.
Although the Bill was already in process in the National Assembly, its withdrawal coincided with the government’s decision to backtrack on the Finance Bill following widespread protests across the country.
Critics viewed the Bill as part of the government’s efforts to generate additional revenue by taxing already heavily burdened Kenyans. The Bill aimed to amend the 2012 Land Act by introducing a new levy under section 54, requiring owners of freehold land—those who possess perpetual ownership and can use the land for any purpose—to pay land rent.
“The owner of any freehold land situated within the boundaries of any urban area or city shall pay an annual land levy equivalent to rant rent charged on a comparable leasehold land or property of the same size in the same zone, provided that any owner of freehold land that is put to agriculture use may be exempted from the annual land levy,” reads part of the withdrawn Bill.
