What are land rates?
Land rates is simply a form of property tax paid yearly to the local county government by a land owner. It is based on the unimproved value of your land and the amount varies depending on; your location, land size and amenities provided. Unimproved value means, the value of the land without buildings or any improvement – when bare.
Rates are paid as a statutory obligation to support developmental activities in the county government. Projects such as road maintenance, street lighting and sanitation all benefit from such payments.
Difference between land rates & land rents?
A lot of people confuse land rates and land rents, with the terms being used interchangeably. However, the two terms are different and can imply another meaning if used wrongly. I have broken down the key differences in the table below;
| Land Rates | Land Rents |
| Paid to the County government. | Paid to the National government through the Ministry of Lands. |
| Paid by the owner of a Freehold or Leasehold title. | Paid by a person or company that has leased land from the government for a given duration. |
| It is paid to fund services like sanitation, security & road maintenance. | It is paid as a Fee to use public land. |
| Calculated from the unimproved value of your land as determined by county authorities. | It is a fixed fee agreed to be paid annually based on the land size and location. |
Why you should pay land rates
1. To avoid penalties & interests
Failure to pay land rates results in accumulated penalties and interests. Remember that it is a statutory payment which means that failure to comply can lead to legal consequences.
2. To fund local development
Payment of land rates is often a way to fund county development. Here is how you should see it. Your land can’t gain value if the environment around it is unimproved. So by paying land rates, you contribute towards development of county infrastructure which boosts the value of your land.
3. Prevent the loss of your property
Remember the fact that failure to pay land rates can be enforced by law. In severe cases, the penalties and interests might accumulate so much that they are greater than the value of your land. In such a case, or where the land owner can’t clear a huge interest balance, the county government can auction the land. This means the permanent loss of the property.
How to pay land rates in Kenya?
Paying your rates can be done in just 4-easy steps. Below is a simplified breakdown on how to do so.
- The first step involves obtaining a rate demand notice from the county government. This is a document that indicates how much a person owes as land rates.
- The next step is to verify the rate demand notice by checking if details such as the amount you are being asked to pay is accurate. It would be for instance inaccurate if you are charged a rate of Kes 1,000,000 when the value of the land is not even higher than this.
- Once you are sure everything checks out, you can proceed to pay the land rates. This may involve various channels; such as: using online platforms or designated bank accounts provided by your respective county.
- The last step is to keep the record of your payment. This comes in handy in land transactions as it is a supporting proof of ownership alongside your land title deed. It could also help you avoid disputes of unpaid rates in future.
With all this information in mind, the next question is how exactly do we pay land rates. In the digital era, technology has definitely made it easy to handle land rates payment. This has added to the methods of land rates payment. Today you can pay your land rates through;
1. Visit your county offices
The old school method to pay your land rates is to physically visit the county government offices where your land is located and pay there physically. The rate demand notice you requested earlier should inform you of the amount you are required to pay.
2. Designated Bank
Your county government might provide a given bank account where they receive land rates through. The same way you would pay your water bill or school fees, is how this method works. Just make sure that you are using a designated bank account and that you fill out the details correctly.
3. Online platforms & USSD
The most convenient method is using online platforms. Most county governments have online portals where you can login and make your payments through. You could also use a USSD code like *217# which will load a menu that you navigate to the payments section. Let me give an example using Nairobi County. The process may vary slightly in other counties but most things remain the same.
How to pay land rates in nairobi
- Register with the e-jiji payment service through Nairobi County’s online portal or USSD *647#.
- Log into your account.
- Find the land search option under the Ministry of Land and Urban Housing.
- Enter your title number and complete the form.
- Confirm your details to make sure they are correct and proceed to make the payment.
- Upon successful payment, you will be able to print the payment slip.
| County | Land Rate Annual Charge (KES) | Payment Deadline |
| Nairobi | 5,000 – 10,000 | 31st March |
| Mombasa | 4,000 – 8,000 | 30th June |
| Kisumu | 3,000 – 6,000 | 31st December |
| Kitui | 2,000 – 4,000 | 30th September |
| Meru | 1,500 – 3,000 | 31st March |
| Kiambu | 3,000 – 6,000 | 31st March |
Frequently asked questions
To know how much your land rates are, you need to ask for a rate demand notice from the county government.
The USSD code for paying land rates is *217#.
Land rates are paid yearly. With the deadline marking the end of a payment year.
Land rates are a kind of property tax paid to the county government by a land owner which goes towards funding local development services. Land rents on the other hand is money paid to the national government through the Ministry of Lands by a person leasing public land to use for a stipulated period of time.
Land rates are calculated based on the size, location and undeveloped value of your land.
Land rates are paid by a land owner.
