Ministries owe Nairobi Sh2.7bn in land rates, Sakaja tells Senate
Written on
Nairobi Governor Johnson Sakaja has told a Senate committee that national government ministries owe the county Sh2.7 billion in unpaid land rates, with police stations, prisons and military barracks owing more.
Nairobi Governor Johnson Sakaja has disclosed that national government ministries owe Nairobi County Sh2.7 billion in unpaid land rates, telling the Senate County Public Investments and Special Funds Committee that the county has written several letters to ministries that failed to honour their rates obligations.
Sakaja said the Sh2.7 billion figure relates to outstanding rates owed by ministries, while other public institutions including police stations, prisons and military barracks have significantly larger outstanding obligations.
Rather than pursue the arrears through enforcement, the governor proposed negotiations between the two levels of government. “The conclusion of the matter is having a meeting with the Head of Public Service at State House, where we see how these monies can be paid, what we as the country owe them and what they owe us, so that we have a well-discussed and agreed way of settling the matter,” Sakaja told senators. Committee chair, Taita Taveta Senator Johnes Mwaruma, said the relevant institutions should be summoned before the committee to address the matter.
Sakaja said Nairobi has the potential to raise up to Sh80 billion in own-source revenue if land rates and other charges are fully collected, arguing that improved collection would give the county greater capacity to finance services and development without putting too much pressure on residents and small businesses.
To boost collections, the Nairobi Revenue Authority has appointed six specialised debt recovery firms, each expected to oversee recoveries within one of Nairobi’s six boroughs, targeting long-standing land rates arrears including accumulated penalties and interest. Sakaja said the authority had digitised the collection of 125 revenue streams, including a single business permit that can be applied for, paid for and printed online, and cited the National Rating Act, 2024, which was assented to in December 2024, as legislation that could strengthen Nairobi’s revenue base once fully implemented. He said revenue collection rose from Sh8 billion to Sh15.4 billion in four years.