Editor's Review

KRA will seize and possibly auction properties in Nairobi to recover revenue owed to City Hall.

The Kenya Revenue Authority will lead a crackdown on home and office block owners in Nairobi County.

The taxman in conjunction with City Hall, in March issued a notice to several property owners in the city warning it will seize and auction properties to recover dues owed to the government.

“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.

KRA warned that those who fail to comply risk arrests, prosecution, seizure and auction of their properties, and revocation of development plan approvals.

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In January 2021, report released by City Hall, 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.