KAA among defaulters risking auction over Sh81.9 billion Kisumu land rates debt
Kisumu County is demanding payment from 1,892 defaulters, including Kisumu International Airport, churches, and state agencies or face property auctions.
More than 1,892 properties—including churches, homes, government buildings, and business premises—risk being auctioned for failing to pay land rates totalling Sh81.9 billion owed to the County Government of Kisumu.
Of these, 154 properties belong to government agencies and registered companies, while 1,738 are owned by individuals.
The total debt owed by corporates and government agencies amounts to Sh37.376 billion, while individual defaulters owe over Sh44.523 billion.
In a notice issued by Kisumu City Manager Abala Wanga and published in a local daily on April 22, 2025, property owners were directed to clear their arrears or face penalties, interest, and "enforcement action" in accordance with the law.
“The owners of the following listed properties are advised to ensure that they pay outstanding land rates owed to the County Government of Kisumu. Otherwise, the properties shall be subjected to penalties, interests, and enforcement actions, including but not limited to auction,” the notice reads.
Landowners were advised to make their payments through the City of Kisumu Revenue Collection account upon obtaining their invoices.
According to the county government, the biggest defaulters include the Kenya Airports Authority (KAA), which owes Sh13.83 billion in unpaid land rates, Lolwe Housing Cooperative Society (Sh8.26 billion), KIE Limited (Sh2.33 billion), and NOVA Construction (Sh1.59 billion).
Other government agencies at risk of auction for land rate defaults include Kenya Broadcasting Corporation – Sh222.78 million; National Cereals and Produce Board – Sh252.58 million; NSSF – Sh40.14 million; Lake Victoria South Water Services Board – Sh13.25 million; and Kenya Pipeline Company – Sh2.33 million.
Churches have also been listed among defaulters. These include United International Life Ministry of Churches – Sh2.30 billion; Evangelical Lutheran Church – Sh1.24 billion; SDA East African Union Ltd, LAOS SDA Church – Sh9.64 million; PEFA All Nations Gospel Church Migosi – Sh5.91 million; Pentecostal Assembly of God – Sh3.22 million and Evangelism Harvest Fellowship Ministry – Sh2.20 million.
Most of the defaulting individual properties are located in Migosi, Mamboleo, Nyalenda, Manyatta A, Kibos, the contentious Kanyakwar area in Kisumu East, and parts of Kisumu West sub-counties.
The stern warning comes just two days before the much-anticipated Governor’s Roundtable on Land, scheduled for April 25 at the Tom Mboya Labour College in Kisumu.
All listed property owners have been asked to attend the meeting.
Governor Anyang’ Nyong’o had placed hopes on a new valuation roll, implementation of a unified business permit, and levies in the health sector to help Kisumu County achieve its Own Source Revenue target of Sh3.7 billion for the 2024/25 financial year.
The valuation roll is a legal document listing property information for all rateable properties within municipal boundaries.
Although the county government stated that it had operationalised the new roll, it faced a setback after the document was challenged in court.
The roll aimed to collect over Sh2 billion, and the county is hopeful that the pending court case will be resolved soon to allow them to proceed with rate collection.
In 2022, the Kisumu Court dealt a blow to Governor Nyong’o’s administration when it quashed the gazettment of a new Valuation Roll that proposed excessive annual rate increases of over 7,000 percent.
The Gazette Notice, published on December 24, 2020, proposed rate hikes of up to 7,275 percent on freehold land and up to 5,343 percent on leasehold land.
The Environment and Land Court halted the implementation of the new rates following a successful petition by John Michael Obure, a Kisumu resident and tenant. He argued that enforcing the new rates would subject residents to excessive charges, increase the cost of living, and reduce the competitiveness of Kisumu businesses relative to other counties.
The County Government filed an appeal, and judgment is expected on April 24, 2025.
Meanwhile, the City Manager has asked any landowners who have paid their rates but still appear on the defaulters’ list to visit his office for reconciliation.
roudia@ke.nationmedia.com