Freehold landowners in Kajiado will soon pay land rates if the County Assembly passes the proposed land rates bill.
The proposal follows a recent announcement by the county government that it will reduce land rates proposed earlier by 60 percent.
The proposal to rope in freehold landowners and agricultural investors comes against the backdrop of the county’s bid to expand the revenue base.
But this has not gone down well with those the Land Rates and Physical Planning 202/21 Bill targets.
Already, some residents have unsuccessfully petitioned the new regulations, but the county Lands ministry has downplayed objections saying the bill has undergone intense public participation before being presented to the Assembly.
Currently, freehold landowners, including those in towns are exempted from paying land rates.
But plot owners and leasehold landowners have been crying foul over what they term exorbitant land rates, forcing the county to announce that it will reduce the rates by 65 percent during Jamhuri Day celebrations last year.
Land values
The reviewed land rates will be calculated on the basis of an average figure and not the value of the land.
The average figure varies depending on location based on the adjudication zone, but the county government is yet to announce the actual charges per zone.
County Lands and Physical Planning executive Hamilton Parseina said they opted to reduce the rates but expand the revenue base.
“This was a well-thought out review and we will use a standard average figure to calculate the rates. The average figure is what we have considered affordable to common mwananchi.
Calculating the rates based on land values will be way too expensive, unaffordable and exorbitant,” said Parseina, adding that rates on agriculture and horticulture projects will be charged according to acreage.
“We are considerate of investors in agriculture, but charges on farms more than 20 acres will be relatively lower than charges on small scale farms,” he said.
If the bill passes, rents in rural shopping centers are likely to go up as landowners, including in far-flung areas would now be subjected to pay the rates.
“If the rates are imposed on us, we will be forced to increase rent for our clients. We are hopeful the bill will not get the light of the day,” said James Ntelu, a landlord.
The move comes as the county targets to raise Sh2 billion revenue, up from Sh1.1 billion in the last financial year.
And governor Joseph Ole Lenku has insisted that the set target must be achieved.
“I challenge revenue collectors to deliver the set targets by all means. Any officer found compromising on matters revenue will be fired,” he warned.
Parseina said the county has been unable to meet its revenue targets because only a handful of people have been paying the rates, which until now have been limited to satellite towns.
For instance, only 30 percent of the populous Kitengela town landowners pay land rates given that most people have freehold titles for commercial plots.
“We will undertake further education to ensure residents understand the new regulations,” said Parseina.
Boma has learned that landowners regrouping to put up a fight against the new regulations even as some MCAs intimate that the new rates will unanimously pass.
Most private developers have yet to come out publicly to oppose the move, fearing victimisation and harassment by county government officials.
“The county Lands ministry is banking its argument on affordable rates, but that is an unfair move. We will not agree and we will petition,” said a property dealer who declined to be named.
Rent increase
“We are not happy at all by this move. We are not even aware of any public participation on the issue; this is just a law that is being forced down our throats and unfair.
The county government ought to have sealed revenue loss loopholes instead of expanding cash strategising to take advantage plot owners,” said another a private developer.
While the county government says the funds will be channelled back to taxpayers through improved services, especially infrastructure, residents suspect such money will be misused.
“We have not seen any significant improvement in our infrastructure so far. We see this as an expanded net to cash more for a few individuals,” said Denis Kyalo, a resident of Kitengela.
Landlords say they will pass the burden to tenants both in commercial space and homes, which will increase the cost of doing business.
