Owning land in Kenya can be an exciting undertaking. It is a source of joy and a step towards securing your family’s future. As a landowner, you need to ensure that the documentation is right and that you adhere to all the set rules and regulation.
One such regulation is paying your land rates in time. This article offers you a guide on how to pay your land rates, the difference between land rates and land rent, and the different options you can use to pay your land rates in Kenya.
What are land rates?
This refers to the tax the government of Kenya imposes on a piece of land. Land rates vary depending on the market value of the land. When the market value of a piece of land appreciates, the land rate to be paid increases.
Land rates are a form of revenue for the government just like taxes.
In Kenya, land rates are collected by the county government.
The Difference Between Land Rates and Land Rent
Land rates are charged on each parcel of land and payable to the county government, while land rent is imposed on leasehold parcels and is paid to the national government though the ministry of land and physical planning. Land rents are reserved at the time the grant is being issued.
While the county government issues a rates clearance certificate as evidence of payment of land rates, a land rent clearance certificate is issued by the national government through the ministry of lands as evidence of payment of land rent.
How to Pay for Your Land Rates
There are three options you can use to pay for your lands rates:
- Cash office – The is the oldest payment option that is being used by most of the counties in Kenya. Visit the respective county government’s cash office to settle your land rates and ensure you are given a payment receipt. File it for future reference in case of any eventuality.
- Bank deposit – With this option, you can make an interbank transfer or deposit directly to the county government banks account. If you choose this option, make sure to indicate the correct account details. You should be able to find the account name, branch name and the account number of your county on their individual websites.
- Online payment option – This is the most convenient option for both land rent and land rates payment. You are required to register for the service before using it. Those in Nairobi can register using their mobile phone or using the county’s online portal.