Syovata Ndambuki

The cost of property ownership is rarely discussed in real estate topics. There is an abundance of advice and tips on how to buy the best property but no one tells you what it costs to keep that property. 

In the Kenyan context, real estate investments have, for a long time, been relatively cheap with loopholes to avoid property tax – even though ill-adviced. Over the past few years, a raft of legal changes have sealed these loopholes and property owners are in the spotlight. 

Perhaps you own an apartment in Kenya or are considering buying one. How much exactly, will you pay in land rates? 

Table of Contents

What are Land Rates in Kenyan Context

Land rates, or property rates, are annual taxes charged by county governments to the registered owners of rateable property. These rates are calculated based on the property’s official value as listed in the county’s valuation roll, and they apply to most developed or undeveloped land, unless the property is legally exempt.

In simple terms, if your name appears on the title deed (as an individual or sectional owner), and your property isn’t exempt, you are legally responsible for paying land rates. These funds support county services like roads, waste management, fire protection, and public utilities.

What the Law Says About Apartments and Land Rates in Kenya

Collection and payment of land rates in Kenya are covered under two main Acts, Sectional Properties Act (SPA), 2020 and National Rating Act, 2024.

The SPA provides a framework for subdividing buildings into units, and registering sectional units and sectional titles. Each apartment unit owner in a building should have a sectional title and a share certificate which shows ownership of common areas. 

With the introduction of sectional titles for apartment owners, payment of land rates is officially transferred to buyers once these titles are registered. The developer who may have owned the mother title is absolved of paying property tax and this obligation is transferred to unit owners. 

The National Rating Act, 2024, enacted 4 December 2024, in force from 24 December 2024 was primarily introduced to:

• Provide a uniform framework for county governments on how to rate land and buildings. 
• With rampant non-compliance among property owners, it was difficult for county governments to rely on land rates as a source of revenue. 
• The Act gave county governments more powers to enforce payment of land rates, fines, penalties and other legal actions. 
• These actions include repossession of property. 

Both laws recognize apartment owners as rateable owners and apartment units as rateable properties, unless they fall within the category of exempt properties. 

What Next After Acquiring a Sectional Title

After purchasing an apartment in Kenya, each unit owner is entitled to a sectional title. The process of registering a sectional unit comes at a small cost. And this document is not just proof you own a unit, it also comes with tax responsibilities.

According to section 51 of the Sectional Properties Act:

1. Each unit and the share in the common property appurtenant to the unit constitutes a separate parcel of land and improvement.  

This simply means, your apartment unit (sectional unit) plus your share in the common areas are similar to a parcel of land and the unit’s value, plus your share of the common areas will be used to determine your annual rates. 

Kenyan law free developers and management companies from paying land rates for common areas. The burden is transferred to individual unit owners.

Section 52 further frees developers and management companies selling apartments or managing the sectional units (apartments),  from paying land rates once units are sold. 

• 52. The Corporation is not liable in relation to the parcel for any rate, ground rent, charge or tax levied by a rating authority. 

Lastly, section 53 empowers counties to access rateable properties for the assessment purposes. 

• 53.  A county government, public authority or person authorized by either a county government or public authority shall have the right to access any part of a parcel or any other part of the parcel to the extent necessary or expedient to enable it or him to exercise its or his powers. 

• Each unit and the share in the common property appurtenant to the unit constitutes a separate parcel of land and improvements; and (b) the common property shall not constitute a separate parcel of land or improvements. 52. The Corporation is not liable in relation to the parcel for any rate, ground rent, charge or tax levied by a rating authority. 53. A county government, public authority or person authorized by either a county government or public authority shall have the right to access any part of a parcel or any other part of the parcel to the extent necessary or expedient to enable it or him to exercise its or his powers. 

Creating Land Rates Accounts

County governments are primarily responsible for collecting land rates from apartment owners in Kenya. To improve efficiency in collection of these rates, the National Rating Act, 2024 covered the introduction of effective digital payment systems. Each county government is essentially supposed to create and maintain modern payment systems. 

Depending on the county, where your unit is located, you should create an account on the respective ePayment portal managed by the county government. 

• Nairobi county for instance, collects land rates payments through Nairobi Pay

• Machakos County collects land rates through Machapay. 

Nairobi county’s portal also shows pending land rates, to account owners, making it easy to track pending bills. The portal also allows non-citizens and organizations to create accounts.

How much do apartment owners pay in Land Rates in Kenya?

Although the National Rating Act attempted to introduce a uniform rate for all counties, this provision was removed from the final draft. 

Currently, county governments are required to prepare valuation rolls which guide property owners within their counties on rates. These valuation rolls are revised every five years, but can be extended. In simple terms, each county government decides how much land owners or unit owners pay in land rates. 

• Nairobi County for instance, introduced new rates for apartment owners (and other land owners) in January 2025. Moving forward property owners are required to pay 0.115% of property value as rates. 
• Machakos county launched a new draft valuation roll in March 2025.
• In Kajiado County, a schedule outlining fixed rates for various property types was published in the county’s Finance Act, 2023. Different properties attracted diverse amounts with the highest being Shs 5,000.  The schedule was, however, published before the National Rating Act, 2024 was signed into law. Therefore, it is likely that an update will be published. 

Exemptions and Remissions

The National rating act, 2024 lists property types that enjoy exemptions from paying land rates. 

• Exempt properties: freehold agricultural land and public-purpose land (churches, cemeteries, public schools, hospitals, museums, dams, get a free pass.
• Partial exemption applies to places of worship with profit‑making sections (only worship space exempted). 
• The act also leaves room for exemption of other properties, if the relevant authorities see fit. 
• Property owners can also apply for relief from paying land rates – under reasonable circumstances. Remission applications are available before or within 14 days after the due date and counties must respond within 30 days. Relief may include discounts or waiver of penalties.

Enforcement Mechanisms: What Happens if You Don’t Pay Land Rates? 

While it may have been easier for land rates defaulters to go unnoticed, counties have been cracking down on property owners. In June, 2025, Nairobi county took an early lead in the crackdown. In July 2025, Kajiado County announced they are eyeing higher land rates revenue with legal reforms taking shape.

Related: National Rating Act 2024: A New Chapter in Land Governance

The county also recorded improved collection, a sign of increasing compliance. In the past, county governments have threatened to take measures on defaulters, but with the National Rating Act, 2024, they have strong enforcement tools: 

If you don’t pay your land rates, county governments have the legal power to take action. They can:

• Add a penalty based on the current Central Bank interest rate
  
• Refuse to offer county services (like business permits or approvals) until you pay
  
• Sue you in court to recover the money
  
• Notify the Lands Registry and place a charge (claim) on your property
  
• Use any other legal means to recover what you owe
  

If you still don’t pay after all that, the county can take even stronger steps, such as:

• Appointing a receiver to collect rent from your tenants
  
• Claiming a portion of the property during inheritance or probate cases
  
• Freezing money owed to you by others (attachment of debts)
  
• Auctioning your property at market value to recover the unpaid rates

What This Means for Apartment Owners

• Direct liability: each unit‑owner receives bills, cannot rely on management companies to pay on their behalf; improves transparency and may accelerate timely payments
  
• Valuation frequency: new 5‑year cycle keeps rates closer to market values. Apartment owners need to stay updated on changes or refer to notices and communication from their county governments. 
• Public participation: owners should monitor county gazettes and notices during draft valuation roll publications in order to submit timely objections.
• Exemption and remission: Apartment owners should apply for relief in a timely manner, when needed.