The Nairobi City County is in the process of updating its 1980 valuation roll. It has given city residents with ratable properties until June 18, 2021 to forward objections to a draft valuation roll pending publication.
Usually, objections are raised on the basis of inclusion or omissions of ratable properties or the value ascribed to a property in the draft roll.
Though rather late, the exercise by City Hall is good for its revenue base. And it will have significant financial implications to the rates payable by residents. It is, therefore, advisable that owners to ratable properties lodge any legitimate objections within the timeline, else find themselves bound to the rates to be published.
Worldwide, the payment of rates by residents with properties within urban spaces is the norm. And the land revenue so collected usually constitutes a substantial proportion of the collectable revenue.
So smart urban authorities always ensure that they maintain an up-to-date database, and valuation roll, of all ratable properties within their jurisdiction. This makes it possible for them to levy reasonable rates to applicable properties.
Subsequently, such authorities are able to manage their operations and provide decent services
In Kenya, the Valuation for Rating Act provides authority to county governments to value land for purposes of rating.
Under this law, urban authorities are empowered to prepare valuation rolls periodically, against which they can levy rates to ratable properties.
These are properties within the jurisdiction of a rating authority, but exclude properties such as land which is reserved for roads and land reserved for exclusive public use as listed in the Act.
The Act provides that the rating of property is based on the unimproved site value of any land, which is the value that the land would fetch if offered for sale in an open land market at the time of valuation, had improvements therein not been done.
Such determination is the preserve of qualified valuers, as defined by the Valuers Act.
Valuation court
As is evidenced by Nairobi’s ongoing process, ratable owners, who are proprietors to registered freehold land, or registered leasehold land with terms not less than 25 years, are given the discretion to object to the contents of the valuation roll before it is closed and gazetted. This affords them an opportunity to discuss or correct any points of disagreement.
A Valuation Court, established by the responsible Cabinet secretary, listens to such objections. Where dissatisfied, proprietors can appeal for further hearing in court.
Sadly, much as most of our county governments routinely plead for more funding, they hardly collect their optimal land revenue. Because they either have no valuation rolls, or have obsolete ones. Yet this is a fiscal instrument that each of them can easily update or develop.
There are enough qualified professionals to support them. Perhaps the Treasury should put them to task until they all deliver this fundamental instrument.
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Note: The results are not exact but very close to the actual.
