Nairobi County to auction properties whose owners owe land rates

The Nairobi County Government has announced plans to auction properties of owners who owe land rates.

This move was sanctioned during a meeting chaired by Governor Sakaja Johnson on Tuesday, June 18, 2024.

The County Executive Committee (CEC) said they have also decided to impose caveats on all properties in debt to prevent any transactions, including subdivision, amalgamation, and transfer.

It was mentioned that the CEC meeting also approved the issuance of agency notices for properties generating rental income.

Tenants of these properties must pay their rent directly to the Nairobi City County Government until all overdue rates are completely paid off.

“The Nairobi City County Executive Committee has today given the nod for auction of properties that owe land rates to the county. A meeting of the Cabinet chaired by Governor Sakaja Johnson further authorised that caveats be imposed on all debt properties to prevent any transactions, including subdivision, amalgamation and transfer,” the statement from Sakaja’s office read.

Adding;

The CEC meeting also approved issuance of agency notice for properties with rental income, where tenants will be required to pay rent directly to Nairobi City County Government until the outstanding rates are fully settled.”

Sakaja’s office said the decision follows the expiration of the second waiver for land rates penalties and interest, which was contingent on owners settling the principal amounts.

Governor Sakaja emphasized the need for an efficient recovery process to be managed by county internal lawyers.

“The recovery process should be as efficient as possible and be handled by county internal lawyers to avoid incurring huge legal fees that are normally pegged on the value of land in dispute,” he stated.

The county government said a list of rates defaulters was published in the media recently, providing a one-month grace period to settle the principal amount while waiving interest and penalties.

Governor Sakaja has also directed all County Executive Committee Members and Chief Officers to provide vehicles and necessary resources to boost revenue collection.

Nairobi targets Ksh7B

As of today, Nairobi County said it had collected Ksh3.2 billion in land rates against a target of Ksh7 billion, with two weeks remaining in the financial year.

According to Sakaja’s office, the total revenue stands at Ksh12.2 billion the highest ever collected by any county government since the advent of devolution. This according to the county government, surpasses the previous record of Ksh12.1 billion set in the financial year 2015/2016.

Sakaja praised the county revenue team for their exceptional performance, even when enforcement was suspended to allow clients time to comply.

“The county revenue team has done an excellent job in surpassing the target,” he noted.

In addition to the revenue measures, Sakaja directed the Environmental sector to begin beautifying Langata Cemetery.

“Many people have sentimental feelings towards Langata Cemetery as almost everyone knows someone who is buried there. The ‘green army’ should use the resources already at their disposal and the plans at the City Park tree nursery to beautify the cemetery,” he said.

The County Executive Committee Member for Finance has been instructed to issue a circular with guidelines on local and foreign travel.

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