Review of City Hall’s valuation roll could raise land rates
What you need to know:
- The value of property in some areas like Upper Hill, Kilimani and Ngong Road has grown many times over to eclipse previously high-worth areas.
- “Nairobi’s property roll is estimated to cover less than a quarter of the total properties, and values are now almost 35 years out of date. Realising the full potential of property rates will require complete reconstruction of the fiscal cadastre,” the World Bank said in a March report.
City Hall has begun reviewing its valuation roll in what could see property owners in Nairobi pay more in land rates. It has contracted Geomaps Africa, a valuation firm, to undertake the process alongside an 11-man team of county valuers.
The development of the draft valuation roll will see the county government update the value of land across the city and determine how much should be paid in land rates.
“The Nairobi City County government gives notice that the mentioned Draft Valuation Roll is under preparation and will cover all rateable properties within the jurisdiction of the county,” a public notice by City Hall says. The current draft valuation roll is more than 30 years old, making it ineffective in capturing the value of land, which has changed over the years in different locations.
DOUBLED CHARGES
The new valuation roll will be based on the value of undeveloped land (unimproved site value).
Currently, property owners pay rates at 34 per cent of the unimproved site value based on the 1980 valuation roll, which apportions the worth of land depending on its location, with plots in the central business district and high-end locations like Karen attracting higher charges than those in Eastlands.
The value of property in some areas like Upper Hill, Kilimani and Ngong Road has grown many times over to eclipse previously high-worth areas.
The updating of the valuation roll will help City Hall raise more in property rates, with experts saying the county could be losing billions thanks to the outdated records.
“Nairobi’s property roll is estimated to cover less than a quarter of the total properties, and values are now almost 35 years out of date. Realising the full potential of property rates will require complete reconstruction of the fiscal cadastre,” the World Bank said in a March report.
City Hall doubled the charge to 34 per cent in 2013 in an attempt to increase revenues for a county that is struggling to meet its growing expenditure.
Data from the Controller of Budget shows that City Hall collected Sh2.6 billion in land rates for the nine months to March this year – about 27 per cent of its total revenues. Land rates remain the biggest revenue earner for the county, and the review could see Nairobi grow its income considerably.
