The Nairobi City County Government has started a new crackdown on property owners who have failed to pay land rates for more than three years.
The county warned that long-term defaulters could face legal action. This may include property attachment, auction, CRB listing and other recovery steps.
The exercise aims to recover unpaid land rates, penalties and interest owed to the county.
Six Firms to Handle Debt Recovery
To support the exercise, the Nairobi Revenue Authority (NRA) has appointed six debt recovery firms.
The companies will handle recoveries across Nairobi’s six boroughs.
Siuma Auctioneers will manage the Western Borough. Meanwhile, Prysis Solutions Limited will cover the Northern Borough.
In addition, Jephys Auctioneers will handle the Central Borough. Boresha Credit Services Limited will oversee the South Eastern Borough.
Furthermore, Quest Holdings Limited will operate in the Eastern Borough. AFS Holdings Limited will manage the Southern Borough.
Sakaja Defends Enforcement Plan
Governor Johnson Sakaja said the move will promote fairness among taxpayers.
He said small traders and other residents who pay their taxes should not carry the burden alone.
According to Sakaja, many property owners have failed to meet their land rate obligations.
“Mama Mboga and small business owners have never failed to pay what is due to the county. However, many landowners have failed to pay what they owe the county,” Sakaja said.
The governor noted that Nairobi has about 250,000 registered properties. However, only about 50,000 owners have active accounts and pay their rates regularly.
Additionally, he said the county introduced instalment plans to help property owners clear their debts.
County Issues Warning to Defaulters
Meanwhile, Nairobi Receiver of Revenue Tiras Njoroge warned that the county will act against defaulters.
He said property owners who fail to clear their debts may face enforcement without further notice.
According to Njoroge, the county may attach and auction properties. It may also list defaulters with Credit Reference Bureaus under the National Rating Act, 2024.
He urged property owners to make payments only through authorised Nairobi City County revenue channels.
Nairobi Seeks More Revenue
The recovery campaign is part of Nairobi County’s plan to increase local revenue collection.
Currently, county officials say only about 20 per cent of the city’s estimated 250,000 property owners pay land rates regularly.
As a result, the county loses important revenue needed for public services and development projects.
Therefore, officials say the exercise will improve tax compliance and help the county provide better services to Nairobi residents.
