Nairobi County Government closes Royalty House over Sh2.3m land rates arrears
Nairobi County government has shut down the Royalty House due to land rate arrears.
County officials closed down the building on Thursday morning over Sh2.3 million land rates arrears.
“Notice is hereby given that pursuant to the provisions of Section 18 of Rating Act CAP 267, all tenants are henceforth directed to pay rent payable to the landlord of the property LR NO 209/588 registered in the name of WINES &SPIRIT(k)LTD to the Nairobi City Council bank accounts through any of the following branches,” read a notice from the office of the Governor.
The land rates which are governed by the Land Act of 2012 are taxes that are payable to the county government on the value of land, buildings and structures that are situated on the land.
The rate varies from one county government to another and is usually calculated as a percentage of the property’s market value. This is usually payable annually, failure of which results in penalties and legal action.
“As per the building caretaker, the building owner received a notice regarding the closure a month ago, but the tenants were not informed. The tenants have fulfilled their responsibility by paying the rent. It is unjust that the government shuts down the building every year due to the owner's non-compliance. Consequently, the tenants have been forced to shut down their businesses, resulting in significant financial losses. This situation is unfair,” claimed one tenant.
Royalty House stands tall with its two-storey structure, offering a vibrant commercial space in Nairobi. The ground floor buzzes with life as over 20 stalls proudly showcase goods, ranging from electronics to fashionable clothing. While on the top floor is a restaurant.
“County government officials arrived and shut down the businesses, explicitly instructing us not to resume operations until the owner settles the outstanding dues. The unexpected turn of events left us bewildered and uncertain about our next course of action. This establishment serves as a vital source of livelihood for many, making the situation even more distressing,” said another tenant.
In April 2023, Nairobi Governor Johnson Sakaja made the decision to extend the deadline for land rate registration. Typically, this registration is due in March annually, but the governor granted an extension, allowing individuals more time to fulfill this obligation.
“on Extension of 2023 Land Rates Payment Period. All property owners who were not able to settle their land rates have up to the April 15 to pay. During this extension period, no penalties shall be levied on the current year land rates,” read the notice.
