Nairobi County appoints 6 debt recovery firms to pursue land rates defaulters

The revenue recovery drive, being spearheaded by the Nairobi Revenue Authority (NRA), seeks to collect long-standing land rates arrears, together with accrued penalties and interest.

To oversee the operation, the NRA has appointed six specialised debt recovery firms to manage recoveries across Nairobi's six boroughs. Siuma Auctioneers will cover the Western Borough, Prysis Solutions Limited the Northern Borough, Jephys Auctioneers the Central Borough, Boresha Credit Services Limited the South Eastern Borough, Quest Holdings Limited the Eastern Borough, and AFS Holdings Limited the Southern Borough.

Governor Johnson Sakaja defended the crackdown, saying it was unfair for small traders and compliant taxpayers to bear the burden of financing county services while many property owners continue to default on their statutory obligations.

"Mama Mboga and small business owners have never failed to pay what is due to the county. However, many landowners have failed to pay what they owe the county," Sakaja said.

He noted that out of approximately 250,000 registered land parcels in Nairobi, only about 50,000 property owners have active accounts and consistently pay land rates.

"We have even introduced instalment payment options to make compliance easier. The system is fully automated, so unless payments are reflected in the accounts, no one can make adjustments on your behalf," he said.

Sakaja reiterated that the county could no longer rely on a small pool of compliant taxpayers to fund essential services.

"Mama Mboga, motorists and other law-abiding taxpayers have always paid their dues. We cannot continue running this city on the shoulders of Mama Mboga alone. Everyone must pay what they owe the county so that we can continue providing quality services," he added.

Nairobi Receiver of Revenue Tiras Njoroge warned that enforcement would proceed without further notice against property owners who fail to settle outstanding land rates.

"Property owners in default are warned that failure to settle arrears immediately will trigger enforcement actions without further notice. Under the National Rating Act, 2024, enforcement measures may include property attachment and auction, Credit Reference Bureau (CRB) listing, and other statutory recovery actions," Njoroge said.

He urged landowners to clear their outstanding balances promptly, stressing that all payments must be made exclusively through authorised Nairobi City County revenue collection channels.

The latest enforcement campaign is part of Nairobi County's broader efforts to strengthen own-source revenue collection and improve compliance among property owners.

County officials have repeatedly expressed concern that only about 20 per cent of the city's estimated 250,000 registered property owners regularly pay land rates, depriving the county of critical revenue needed to finance service delivery, infrastructure development and other public services.

The county says the exercise is intended to promote equitable tax compliance while enhancing its capacity to fund essential services for Nairobi residents.