Nairobi's New Land Rates Kicks Off in January 2026 as Property Owners Face the New Fees

Nairobi City Real Estate
A vVew of airobi City Real Estate | Construction Kenya
Nairobi County is set to implement new land rates starting January 1, 2026, under the National Rating Act, 2024, to boost revenue. The revised charges include flat rates for smaller parcels (Sh2,560 to Sh4,800) and 0.115% of the unimproved site value for residential and commercial properties.

Nairobi landowners are facing a significant financial shift as the county government prepares to implement new land rates starting January 1, 2026. This comprehensive revision, enacted under the National Rating Act, 2024, is designed to enhance the city’s revenue generation and ensure property valuations align more closely with current market conditions.

The new structure introduces specific tariffs for properties located in flat-rate zones. Land measuring up to 0.1 hectares will attract an annual rate of Sh2,560, while larger parcels exceeding 0.4 hectares will be charged Sh4,800 per year. For properties like residential, commercial, and agricultural plots whose charges are determined by a valuation, the rate is set at 0.115 percent of the unimproved site value annually. 

Several implementation conditions will manage the transition for landowners. If an owner's new calculated rate falls below the 2022 level, they will continue to pay the older 2022 rate instead. Furthermore, to prevent sudden massive increases, any revised charge that is more than double the 2022 figure will be capped at exactly double that previous rate.

Property owners who formally lodged objections against the 2019 Draft Valuation Roll will receive a temporary reprieve. They will continue to pay the old rates until the valuation board hears and determines their specific cases, ensuring a fair process.

In a move aimed at improving compliance and streamlining billing, the county has directed all sectional titleholders, such as those who own apartments, to open individual land rate accounts. This requirement is a key step towards accurate billing and better collection across properties with multiple ownerships.

This rate review comes as Governor Johnson Sakaja also urges owners of illegal or unapproved developments to use the existing window to regularise their buildings before strict legal action commences. Landowners are encouraged to access their invoices online through the Nairobi e-services portal or contact the county customer care centre for any needed clarification.

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