Nairobi County resumes drive to recover land rates
A City Council of Nairobi sign outside Princely House on Moi Avenue on October 17, 2012 after the property owner defaulted on paying rates. FILE
What you need to know:
The Nairobi County government on Wednesday revived the “Operation Clamp Down,” which started last year with the latest casualties being Chester House, Marshall House and Mwea Rice House all on Koinange Street over rate payment arrears.
The county two weeks ago gazetted a list of defaulters warning them to honour their payment obligations or have their properties attached.
This comes as the total amount owed to the council now stands at about Sh2 billion.
Nairobi County has resumed attaching of properties whose owners are yet to clear land rate repayments in a bid to reduce outstanding debts.
The county government on Wednesday revived the “Operation Clamp Down,” which started last year with the latest casualties being Chester House, Marshall House and Mwea Rice House all on Koinange Street over rate payment arrears.
The three were, however, unclamped moments later after paying their outstanding dues of Sh2 million in unpaid rates.
The county two weeks ago gazetted a list of defaulters warning them to honour their payment obligations or have their properties attached. This comes as the total amount owed to the council now stands at about Sh2 billion.
“We are targeting to raise about Sh500 million in the first phase (three months),” said Shaban Asman, a county revenue officer said on Wednesday.
The campaign will be taken to outside the central business district next week starting with South B Estate.
The attachment of Chester House arose from a Sh1.1 million owed to the council in rate payments.
Following the move, the owners of Chester House, which hosts a number of businesses rushed and paid the council Sh1.3 million, an overpayment of about Sh200,000.
Marshall paid Sh656,000, the exact amount owed while Mwea Rice paid Sh233,000. The county said that the clamping of property would go on until all rate defaulters in Nairobi pay up.
“The exercise is on until we collect the last penny owed to us,” said Mr Asman.
On top of attachment of property, the county last year gave a one-month amnesty during which it collected Sh1.3 billion. It remains to be seen whether a similar approach will be taken to supplement the property clamp down.
According to the Rating Act, occupants of clamped property are required to henceforth pay rent to the county until it recovers the outstanding debt.
Pundits have in the past warned the county against attaching properties without a directive from the court, saying it could be a recipe for lawsuits.
The council imposes a three per cent interest per month on the defaulted period as provided under Section 16 (3) of the Rating Act.
The county government plans to involve the Kenya Revenue Authority in collecting its dues, citing inefficiencies.
Governor Evans Kidero has also indicated plans to introduce electronic payment systems to ease bureaucracy and seal loopholes that result in revenue loss and evasion.
