Land rent and rates
Suits have been filed contesting the slapping of land rates to freehold tenure properties. Due to widespread misunderstanding between land rent and land rates, some of these will be needlessly lost. Land rents are tenure specific, and are payable to landlords for land they may have leased. Therefore, where one has leased land from either the county or national governments, they are eligible to pay annual rents to these governments.
On the other hand, land rates are jurisdiction specific, and are payable for leasehold and freehold tenure land within a defined and rateable jurisdiction. They are charged to support service provision therein. It’s however important to take note that the new National Rating Act, which received presidential assent in December last year, has introduced a fundamental exemption. The Act, which has been undergoing formulation for quite a while, provides a standardized framework upon which county governments may assess and impose rates on land and buildings in Kenya.