City Hall Targets KSh 5 Billion Boost in Land Rates Collection to Strengthen Revenue Base
Nairobi City County has launched an aggressive campaign to increase land rates revenue by an additional KSh 5 billion, as part of a broader strategy to enhance service delivery and reduce dependence on national government allocations. The initiative, spearheaded by Governor Johnson Sakaja, is aimed at closing the massive compliance gap that has seen only a fraction of landowners in the city pay their dues.
According to County data, out of the 255,000 registered land parcels in Nairobi, only about 50,000—roughly 20%—are currently compliant with land rates payments. This non-compliance has cost the county billions in potential revenue, severely affecting its ability to maintain infrastructure, manage waste, and provide essential services to residents.
In the 2023/24 financial year, Nairobi City County collected a record KSh 12.8 billion in own-source revenue, with land rates accounting for KSh 3.4 billion, making it the largest single contributor. However, this still falls short of the county’s ambitious revenue target of KSh 20 billion, prompting the need for more assertive recovery measures.
To boost compliance, the county has intensified enforcement operations across Nairobi. Since May 2025, over 1,900 properties in high-end areas such as Westlands, Kilimani, Lavington, and the Central Business District have been clamped for defaulting on land rates. Some property owners have also received court orders directing them to settle their arrears, or risk auctioning of their properties. In some cases, the county has resorted to seizing rent directly from tenants occupying the affected buildings.
In a further effort to streamline land rate payments, the county is also working to update its property valuation system. The proposed Nairobi City Finance Bill outlines that land rates will be calculated at 0.115% of the current market value of land, as opposed to older, outdated valuations. The bill also introduces a cap to ensure that rate increases do not exceed twice the 2022 levels, providing some protection for property owners during the transition.
Governor Sakaja has defended the county’s move, arguing that increased revenue from land rates is essential to transforming Nairobi into a functional, modern city. “You cannot compare Nairobi with other global capitals like Kigali or Kigali or Dar es Salaam if we don’t raise the funds needed to maintain roads, clean up the city, and invest in healthcare and education,” he stated.
Finance CEC Charles Kerich noted that the county expects full implementation of the new land rates system and enforcement framework to raise over KSh 30 billion annually. He also pointed to the establishment of the Nairobi City County Revenue Authority, as well as improvements to digital payment platforms, as key tools in achieving the county’s revenue goals.
However, the clampdown has not been without controversy. Some tenants and property owners have expressed concerns about being unfairly targeted or burdened with unexpected costs. County officials have maintained that the crackdown is primarily focused on landlords who have long ignored their obligations, and not tenants who are current on their rent.
As Nairobi’s population continues to grow and urban demands increase, the county’s ability to mobilize resources locally will be critical. The success of this land rates campaign could mark a turning point in how devolved units in Kenya fund their development and deliver on public expectations. For now, City Hall is sending a clear message: pay up or face the consequences.
