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Determining if there are Unpaid Land Rates when Buying Land in Kenya

Land Rates in Kenya

One thing that you should be keen on when buying land in Kenya is whether your preferred piece of land is subject to unpaid land rates. The reason it is important to confirm if there are unpaid land rates is that you cannot complete a land transfer before paying pending rates. Your funds may be stuck if you pay the seller all or some of the purchase price for a parcel if huge unpaid land rates halt the deal.

 Some landowners in Kenya who are obligated to pay land rates have neglected to do so for a long time. This has led to huge amounts of unpaid rates. Doing land rates search early on during the land buying process can help you determine if to proceed with the deal or walk away.  

What are Land Rates?

Land rates are taxes imposed on pieces of land. In Kenya, the tax is payable to county governments. Thus, land rates for a particular parcel are paid to the county government where the plot is situated. Land rates are part of county governments’ tax revenue.

Land rates are charged based on the value of a parcel of land. Valuable parcels are charged higher rates than less valuable ones. Counties charge land rates in exchange for services like streetlights, water, improved roads, sewerage, and drainage system.

Not all parcels of land in Kenya are subject to land rates. If you are a land owner anywhere in the country, doing a land rates search is key to determining if you are supposed to pay land rates for any parcel of land you own or otherwise. Doing such a search will help avoid unknowingly accumulating large sums of land rates.   

Pending Land Rates during Land Acquisition

Pending land rates hinder the land transfer process in Kenya. Thus, they must be cleared to pave the way for a land transfer. Determining if there are unpaid land rates earlier in the land acquisition process helps you negotiate who will be responsible for clearing such rates. You can either agree that the seller will be responsible for clearing pending rates, or you, the buyer, will clear such rates.

If you, as the buyer, agree to clear pending land rates, you should include such details in the land sale agreement. Including the details in the sales agreement would help you recover such money if the land acquisition process fails.

Determining if there are Pending Land Rates

In most counties, to determine if a parcel of land has pending land rates, you have to visit the county land offices. You will need to provide the county office with the title number of the parcel you intend to buy to facilitate the search. You should get the results immediately.

In some counties like Nairobi County, you can conduct a land rates search online. To conduct an online land rates search in Nairobi County, you will need to:

  1. Open the county’s E-Services Portal
  2. Create an account if you do not have one
  3. Navigate to the land rates section
  4. Key in the title number of the parcel you intend to buy, among other details
  5. Proceed to get results

How to Pay Pending Land Rates?

There are several payment options if you opt to pay the land rates for the land you intend to buy. One option is visiting the respective county’s cash office and paying in cash. Ensure that you get a receipt for the payment.

Another option is paying through mobile money services like MPESA. The third option is depositing the land rates in a bank account. Whichever method you use, make sure you get a physical or electronic receipt for proof of payment.   

 

Location: Kenya

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