Another historic judgement!

The High Court of Kenya on Firday 31st March 2006 quashed the City Council of Nairobi's decision to hike land rates by between 40 to 100 per cent.

The suit, brought before the court by We Can Do It through the stewardship of Jackie Resley, has been on going since 2005. The ruling means that rate payers in Nairobi will continue paying as per the 2004 rates.

In its defence the CCN through its lawyer urgued that "a few lapses in a process were not sufficient to entitle the court to interfere withthe decision of a local authority unless there were fundamental breaches".

Finally, the judges ruled the follwing:-

1. The decision by the City Council of Nairobi to publish the 2005 Draft Valuation Roll and to levy rates for 2005 with effect from 1st January 2005 is quashed, and

2. The City Council of Nairobi is prohibited from levying rates under the 2005 Draft Valuation Roll for the City of Nairobi.

CLICK HERE to view the full judgment.

As you most probably are aware, KLDA has been collecting rates from its members on behalf of the City Council of Nairobi as per the Court Order of 12th March 1999 (see Historic Overview below)

There have been no further discussions since our last meeting in June 2005.

Any new developments will be posted on this website.

Rates are still payable to KLDA, until such a time as the NCC complies with the Court Order.

To avoid accruing penalties, property owners are encouraged to pay their rates before the stipulated deadline of May 31st after which the mandatory penalty is applied - per month. 

NB  Systems being what they are, property owners are advised to actively seek out their annual rates information from the Rates Department, 4th Floor, City Hall Annex.  A hand-written statement will be issued on presentation of an LR number. 

Rates payers that have not received such information are encouraged to approach the KLDA office with their particulars.

Rates - Historic Overview

In May 1994, the KLDA Executive Committee decided to demand accountability from the Nairobi City Council (NCC) as the committee believed that the NCC were not being properly accountable to tax payers.

We therefore instructed our advocate to demand annual audited accounts and, if necessary, to move the court to compel the NCC to comply, in order to show the public how the NCC was utilising their revenue in the interests of the city. In early 1995, in the absence of audited accounts, we moved to court. In due course the court agreed with us and ruled that the NCC must produce accounts.

The court further authorised KLDA to collect, hold and account for rates monies collected within our area. By late 1997, no accounts had been produced or were forthcoming from the NCC, so KLDA returned to court to complain that the NCC had not produced any accounts. The court ruled that the NCC should open a special account into which all the Karen and Langata revenue should be placed. In 1999 KLDA again returned to court to complain that this special account had not been put in place as instructed.

The court, making history, ruled that it would be, from then on, illegal to pay rates to the City Council in the absence of a recognised account being in place into which the revenue could be placed.

1994 - Executive committee demanded audited accounts from Nairobi City Council (NCC).

1995 - KLDA moved to court (HCMCA NO 272 of 1995) and obtained order to effect that public money should be properly accounted. In the absence of such accounts NCC was not permitted to collect the KLDA rate money until such time as proper accounting was in place. KLDA asked for, and was granted, permission to collect the money.

1996 - KLDA challenged the collection of penalty interest by NCC on money collected by KLDA on behalf of NCC. NCC agreed to a consent order on the issue.

1998 - KLDA approached the courts to pressure NCC into accountability. Courts ordered NCC to put in place a special account into which all revenues collected from KLDA area were to be paid.

1999 - Courts ruled it illegal for NCC to collect revenue from the KLDA area until the special account was operating.

To transfer, develop, sub-divide or sell their properties, the property owner is obliged to first obtain a Rates Clearance Certificate.

For those who have paid to KLDA, the procedure is fairly straightforward. The property owner and/or their agent request the KLDA office to prepare an application. The application is basically a schedule of payments made, including the present year. Against this, the property owner should attach corroborating documentation such as the KLDA rates receipts, the current water bill paid, and the water meter reading taken at the time the letter is presented to the NCC.

In the event that the property has been independently supplied with water, the NCC will demand verification, usually in the form of a site visit by council officials. In order to complete this exercise, they will need a survey plan (specifically) and will request for transportation to and from the venue on the material day.