There are two types of taxes in Kenya that are payable on land. These are called Land rates and Land Rent. These taxes are levied based on the size and location of the land.

When setting the rates, the national or county government considers factors such as accessibility, proximity to urban centers, availability of utilities, and any existing infrastructure on the land.

As the value of the land appreciates, the rates levied on the land also increases.

Difference Between Land Rent and Land Rate in Kenya

Land rates is payable on land whose title is freehold. This rate is payable to county government. When you pay your rates, the county government issues a rates clearance certificate as evidence of payment of land rates.

Land rates are payable to land whose title is leasehold and is payable to  to the Ministry of Land and Physical Planning through the KRA. Once you make payment, the Ministry of Land issues a rent clearance certificate as evidence of payment of land rent.

Land Rates

In Kenya, county governments have legislative authority to levy property taxes to finance some of the costs of the services they provide. Land tax is one of the land taxes imposed and varies depending on the location and size of the land e.g. Kshs 1,000 per hectare per annum. 

Land tax is levied only in designated urban areas while most agricultural land is not taxed. This tax applies equally to land whose title is on freehold and on leasehold basis.

Land tax varies by county with Nairobi having the highest rate of 8% of the value of land. Governments make decisions on the commercial value of the land. This amount is payable in most county cash offices. Upon full payment of all rates, one is issued with the rates clearance certificate which is conclusive evidence that all rates due and interest accrued have been fully paid

How to pay land Rates

Though most county and the national government is adopting online methods to streamline payment and delivery of services, landowners can use other land rates payment options.

Online payment option.

To pay your land rates online, you can do this in 3 steps.

• Register for the service using either mobile phone or using the county’s online portal.
• Open the browser and visit ecitizen
• Sign in or sign up to your registered account.
• Click on the ministry of Land and Urban housing development
• Click on the land search.
• Enter your land title number, fill the online form and then submit it.
• Confirm the details that have been entered and then proceed for making the payment.
• Once the payment has been confirmed then you will have the option of printing the results.

County government cash office.

This is the oldest payment option. It is used by most of the countries across the country. When using this option, make sure you are given a receipt and that the payment is done in the right way.

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How to pay your land rates online in Nairobi

To pay your land rates online in Nairobi, you will first need to

• register on NCCG epayments Portal  or using the USSD *217# on your phone.
• Log into your account
• Find the land search option by clicking on the ministry of land and urban housing
• You will be prompted to enter your title number. Complete the form submit it
• Confirm your details and make the payment for the required amount
• If the payment is successful, you will have the option of printing the payment slip.

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How to pay for land rates in Kiambu

Please visit the Kiambu County Portal.

How to pay land rent.

How To Pay Land Rent on Ardhisasa

You can now pay your land rent on Ardhisasa, at the comfort of your home or office. Follow the following easy steps to make your payment.

• Go to ardhisasa.lands.go.ke
• Register an account to begin transacting. If you are a registered user, simply log into your account and transact.
• Go to Services on the website
• Under Land Administration, click on Land Rent
• Then click on Pay Land Rent
• Enter Title Number on the Search section using the following formats: Registration Unit/Registration Section/Parcel Number;
• For Nairobi Blocks: Nairobi/Block12/345 or Block No/Parcel Number (for example: 12/345)
• For Mombasa Parcels: Mainland North (or South)/Roman Number/Parcel Number (for example MN/IV/123)
• For other towns and municipalities: Kiambu/MunicipalityBlock1/234
• After searching for the parcel, pending payments will be listed
• Under Actions, click on Pay
• Choose Payment method (M-Pesa or M-Pesa Express) and follow the instructions given to make the payment.
• You will received a payment Confirmation message on your phone
• Click on Confirm to complete the transaction.
• The payments will reflect on your account instantly!

NOTE: If you have several pending land rent payments, you will be required to pay each one of them separately, since each has a unique invoice number. You will ONLY receive a Clearance Certificate once you have settled all pending payments.

• Download the Clearance Certificate or Print it directly from the site.

How to pay Land rent on Mobile Phone

The process is quite simple because it is done using any type of mobile phone. Here are the steps that you should follow;

1. Register by sending an sms with the word lands” to the number 21504. An sms confirming your subscription to the land service will be sent to you.
2. Dial *512# so as to access the service.
3. You will receive a prompt asking you if you want to continue registering. Note that you will be charged Kshs 5 per sms for this service.
4. If you choose to proceed, you will receive another prompt with the options such as registering your land, land tracking and land rate payment.
5. For the case of the land rate, you will be required to enter your land reference number, I.D number and to confirm your details.
6. You will then receive an sms with your payment options.

To pay land rates on eciziten.

1. Open the browser and visit ecitizen then sign in or sign up to your registered account.
2. Click on the ministry of Land and Urban housing development to click on the land search.
3. Then just enter your land title number, fill the online form and then submit it. Confirm the details that have been entered and then proceed for making the payment.
4. Once the payment has been confirmed then you will have the option of printing the results.

An advantage this tax holds over other taxes is that its assessment is simple to understand and to execute. It does not require complicated methods of calculations and assessments. Further, the collection and assessment costs are usually low. The tax rates are varied across regions to take account of the property location. This way, properties in developed counties can be charged more while developing counties charge less which promotes equity.

A disadvantage is that the value of property is subjective leading to the tax amount not being reflective of the value of the land or its actual productive capacity and may punish the registered. Due to at times the low nature of the tax, it does not encourage optimal utilization of land.

In summary:

The case for taxing land in both urban and rural areas in Kenya is strong and compelling. In Kenya, while most people already understand the need to pay land rates, most land owners only pay land rent on transfer or charge of their property. Any owner could lose their property for default of payment of Property tax and accumulation of penalties levied. In case you are a landowner and your schedule doesn’t leave time to visit county governments