The National Assembly debated a Bill  that mandates property owners in low-income areas to pay land rates to their respective county governments. It aims to establish a comprehensive legal framework for levying properties and land throughout the country. In addition, the National Rating Bill introduces a mechanism to accurately measure ratable properties and aims to broaden the tax base. 

The mover of the Bill, the Leader of Majority Party, Hon. Kimani Ichung’wah (Kikuyu), reiterated that the reason and object of the Bill is to provide for enhancement, certainty, uniformity and fairness in the taxes and property rates levied by county governments. This will guarantee secure own-source revenue for devolved units that have struggled in generating enough funds independently.

 “This Bill aims to eliminate disparities between counties in terms of the rates and taxes imposed, which can have adverse effects on businesses and individuals. Uniformity in taxation will promote a more balanced and conducive business environment across the country,” said Hon. Ichung’wah.

According to a study conducted by the National Treasury in collaboration with the World Bank in 2018,  the revenue potential of county governments ranged between Kshs.55 billion and Kshs.173 billion, a stark contrast to the Kshs35 billion currently being collected.

During debate, Hon. Joash Nyamoko (North Mugirango), who chairs the Departmental Committee on Lands said it is evident that the revenue collected from properties and land rates is not as attractive as the revenue generated from parking fees and health facilities.

Hon. Nyamoko, emphasized the significance of revisiting this space since county governments cannot achieve their full potential due to their reliance on laws passed in the 1960s for the collection of rates. 

“This Bill seeks to provide a uniform legislative framework for both the National Government and county governments, governing the imposition of rates and property valuations as per the Constitution's contemplation,” Hon. Nyamoko said.

Furthermore, the Bill strives to enhance certainty, uniformity, and fairness in levying property rates across county governments. Currently, various county governments have established their rating laws, often differing from one another. By having a single legislation governing all county governments and the National Government, there will be harmony and consistency in the rate collection.