Governor Sakaja: Land Rate Defaults Threaten Nairobi’s Public Services
Nairobi Governor Johnson Sakaja has raised alarm over widespread land rate defaults by city landowners, warning that continued non-payment is severely undermining the county’s revenue and threatening the delivery of essential public services.
Speaking during an interview on Citizen TV on Wednesday, April 24, Sakaja revealed that out of 250,000 registered land parcels in Nairobi, only 50,000 owners are currently paying their land rates.
“The biggest revenue earner in a city is property taxes. In Nairobi, we have 250,000 pieces of land, but only 50,000 landowners are paying land rates. That is not sustainable,” the governor stated.
He emphasized that the growing financial strain is making it difficult for the county to meet the needs of its expanding population, and issued a stern warning to defaulters.
Waiver Extension and Enforcement
To offer a final reprieve before enforcement begins, the governor announced the extension of the land rates waiver until April 30, giving property owners a last opportunity to clear their arrears without incurring penalties.
“We’ve extended the waiver to 30th April. Now that we have complete data on the 250,000 properties, it’s time to collect what is due so that we can deliver services as a county. We’ve given enough time—going forward, we shall enforce,” Sakaja said.
Clamping of Buildings on the Table
The county may soon begin clamping properties of defaulters as per existing laws, though Sakaja expressed hope that such drastic measures would be unnecessary.
“Buildings can be clamped. It’s within the law. We would not want to get there. Let’s all take charge. Let’s not leave a small percentage of landowners carrying the heavy luggage of land rates,” he warned.
Revenue and County Services at Risk
Land rates account for about 25% of Nairobi County’s own-source revenue, making them the single largest revenue stream. The county relies on six primary sources for funding public services: land rates, parking fees, business permits, house rent, building permits, and advertising licenses.
However, the increasing rate of default is threatening the county’s financial health.
“Nairobi’s own-source revenue is the backbone of service delivery. When landowners don’t pay, the entire city suffers—from garbage collection and road maintenance to health and housing,” a county finance official noted.
Public Housing and Waiver Policy
In addition to land rate revenue, the county owns about 17,000 housing units in areas like Maringo, Uhuru, Kaloleni, Jericho, and Kariobangi South, with monthly rents ranging from KES 2,000 to KES 20,000.
Any rent waivers granted must be reported to the County Assembly and published in the Kenya Gazette within 14 days, in line with the Nairobi City County Waiver Administration Act of 2013.
As the April 30 waiver deadline approaches, residents and property owners have been urged to regularize their payments or risk punitive action.