Nairobi apartment owners to pay land rates starting January 2024

A photo of apartment blocks in Nyayo estate, Emabakasi Nairobi.  Owners will be expected to pay land rates beginning January 2024. 

Photo credit: File

What you need to know:

  • The rates to be levied will depend on the size of the unit and its location.
  • The Nairobi City County Government Finance Act 2022, assented to by Nairobi Governor Johnson Sakaja last year, provides for land rates for residential, commercial and agricultural land.

Nairobi residents who own apartments within blocks and share common areas within apartments will have to pay land rates to the county government from January 2024.

The new rates are in line with the Sectional Properties Act of 2021, which is already in force.

The rates to be levied will depend on the size of the unit and its location.

Under the Act, each unit owner with a title deed will be required to pay their own rates.

The Act also provides that those living in the apartments will pay rates for common areas such as swimming pools, car parks and playgrounds.

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Apartment owners will also be required to open individual accounts to pay their rates.

In an interview with Citizen TV, Nairobi County CEC for Built Environment and Urban Planning Stephen Mwangi said the devolved unit was keen to avoid double taxation for residents.

"The government is sensitive to Nairobi residents and we do not want to overtax them. We pay the new rates as we did before. The reason you have to pay for the units is because the owner has transferred ownership to the buyer and as a buyer, the unit is already registered with a title deed," said Mr Mwangi.

Land Rates

Nairobi County Governor, Mr Johnson Sakaja (L) and on right the Public Notice issued by the Nairobi County on the newly introduced land rates for apartment owners in the County. 

Photo credit: File

The Nairobi City County Government Finance Act 2022, assented to by Nairobi Governor Johnson Sakaja last year, provides for land rates for residential, commercial and agricultural land. They will have to pay 0.115 per cent of the value of the land.

It also stipulates that those who fail to pay their land rates by 31 March each year will be charged interest.

"A person who fails to pay land rates by 31 March of each year in which the rates are due shall be liable to interest on arrears at the rate of three (3) per cent per month until the same is paid in full," reads part of the law.

The township government has also set up a valuation system that will be used to calculate the rates under the law.

Read: No media interviews without my permission, Sakaja tells officials
Land in Karen will be valued at between Sh20 million and Sh35 million per acre, while land in Westlands will be valued at between Sh20 million and Sh35 million per acre.

Upperhill has a valuation of between Sh200-Sh300 million per acre and those in Mihango, Ruthimitu. Waithaka and Pumwani will be valued at between Sh20 million and Sh30 million.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.