Land owners in Nairobi will soon start paying higher rates after City Hall tabled a proposal that fixes the charge to current asset valuation.

City Hall said new rates will be based on between 0.1 and 0.115 percent of the current value of undeveloped land, setting stage for costly levies.

Currently, property owners pay land rates at 25 percent of the unimproved site value based on the 1980 valuation roll, which City Hall reckons has seen it lose on the appreciation of plots. Nairobi County Lands and Urban Planning CEC Charles Kerich said property owners will start paying higher rates compared to the current once the new valuation roll, which is awaiting public participation, comes into effect.

He said the new valuation roll has been submitted to the county assembly, which will arrange for public participation “The new valuation roll is currently before the county assembly which, after public participation, will come up with a figure of the percentage to be charged as rates on all ratable properties in the capital,” said Mr Kerich.

City Hall raised Sh1.97 billion from land rates in the year to June 2019 against a target Sh4.84 billion, reflecting the defaults facing the income stream.