The Kiambu County Assembly has passed the Valuation and Rating Bill, 2024. The bill introduces significant reforms to land taxation, including the elimination of land tax on freehold and commercial agricultural land and a reduction in penalties for late payment of land rates.
The passage of the bill follows a memorandum from Governor Kimani Wamatangi, who recommended exempting all freehold land not exceeding 10 acres from taxation. This move provides substantial relief to landowners who have been burdened by the previous tax regime.
One of the most significant changes in the bill is the reduction in penalties for late payment of land rates from 36% per annum to 10% per annum. This makes it easier for landowners to comply with payment schedules and reduces the financial strain on commercial landowners.
Additionally, the bill curbs the county government’s power to auction land for unpaid rates. Previously, the law allowed for the auctioning of land if the owner failed to pay land rates. The new bill provides greater security to landowners by limiting this punitive measure.
The amendments to the bill were driven by public petitions and the efforts of local leaders who listened to the concerns of their constituents. Karuri MCA Peter Wainana, who moved the amendments, emphasized that the changes were made in response to the cries of Kiambu residents who found the previous law punitive.
The passage of the Valuation and Rating Bill, 2024, is seen as a significant step towards fairer land taxation and reduced penalties for commercial landowners. This move is expected to foster a more supportive environment for landowners and contribute to the overall economic well-being of Kiambu County.
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