Nairobi Landlords Risk Home Losses After KRA Deadline Lapses

The Kenya Revenue Authority is set to go after home and office block owners after the deadline to pay land rates and business permits lapsed.

The taxman in conjunction with City Hall issued notices to some of the property owners in March, warning that they may be forced to seize and auction the properties to recover the money.

“The Nairobi City County Government and KRA do hereby give notice to the public and traders that the period for compliance with payment of land rates and renewal of licences and permits lapsed on March 31, 2021.

“Consequently, interest and penalties shall be payable for late payments or non-payments of rates, permits and licenses in accordance with the relevant legislation,” the taxman and City Hall said in a joint notice on April 20.

The taxman warned that non compliant owners will be subjected to arrests, prosecution, seizure and auction of their properties, and revocation of development plan approvals.

A report released by City Hall in January 2021, indicated that property owners and businesses owed Ksh825.47 billion in land rates and Ksh904.67 million in unpaid single business permits as of December 2020.

In 2018, the Nairobi City County Assembly amended the Revenue Act of 2015, allowing City Hall to recover land rates from rental income.

Land rates, single business permits and parking fees constitute City Hall’s largest revenue streams.