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KBC risks auction due to accrued land rates

03 September 2015, 15:01 Nechesa Chemoi

Nairobi - Kenya Broadcasting Corporation (KBC) and Kenya Railways are some of the organizations whose property shall be auctioned if they fail to settle the debts they owe the Nairobi County government.

Speaking when he announced a 100% waiver to all land rates defaulters, the County Governor Evans Kidero revealed that defaulters owe the county government KES 158 billion.

“Nairobi City County Government has given a month long waiver to all defaulters to pay up by the end of September, 2015. Those who pay within the stipulated waiver period will get 100% waiver on accrued interest,” Kidero said.

According to Kidero, they intend to collect KES 4.5 billion in rates during the campaign period, and that this will be beneficial to national government entities and private land buying companies which are some of the major defaulters.

He pointed out that failure by the respective organizations and individuals to honor their statutory obligations has slowed down the county’s operations of delivering services to the city residents.

“Land rate defaults have been a major reason for poor revenue collection by county governments in the country, whose budgets continue to trail expenditure. At the end of the waiver period we shall auction properties of all those owners who will not have settled their debts,” Kidero warned.

He said only a third of about 400 000 plots within the city have been registered, making it difficult for his government to deliver services efficiently to the residents.

“The county government will start using share certificates from land buying companies to charge individuals who have pending land rates,” Kidero said.

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