Property owners who have defaulted rates payment will lose their property from next week as the Nairobi county government rolls out a mechanism to auction the properties.
Nairobi Governor Evans KideroThe City Hall land rates arrears 45-day waiver period ended yesterday.
Nairobi Governor Evans Kidero, while addressing the press in his office yesterday, said the county government will dispose off 10 properties weekly to recover land rates debts worth Sh47 billion.
“The principal amount property owners owe City Hall is Sh15 billion, but the figure is not static as it changes every other hour. It now stands at Sh47 billion with 3 per cent interest,” Kidero said.
He said City Hall intended to collect Sh15 billion in rates in the one-month campaign.
So far, only Sh500 million has been colleceted.
Land rate defaults have been a major reason for poor revenue collection by county governments.
Kidero said the Kenya Broadcasting Corporation is yet to pay Sh900 million in land rates.
He warned that the City Hall will auction their property to recover the money.
He revealed Kenya Sports Stadia owes the council Sh252 million, Kenya Airports Authority Sh153 million, Kenya Railways Sh146 million and Pensions Fund Sh302 million among other organisations.
He added that ignorance was the main cause of non-payment of the rates, warning that they intend to launch a major sensitization exercise to ensure residents know their duties.
“Failure by these organisations to pay the money has really affected our operations.
City Hall said it would take legal action beginning next week to recover the money owed by defaulters.
“Legal action could mean auction of properties of those who don’t pay, following the due process.
“It is a long legal process but we are ready to go there if these defaulters do not want to pay. We have already auctioned three and we intend to sell three others,” he added.
The county government will rely on the Rating Act, which was revised in the Nairobi County Finance Act 2013, which gives the county government powers to charge properties.
Financial projections have also been affected, with a parking fees increase that was scheduled to take effect beginning November 1 now being the subject of a court case.
The county government had sought to raise parking fees for private vehicles from the current Sh140 to Sh300, but 26 public service operators obtained an injunction halting the raise.
By STEPHENE SANGIRA, The Star
