Kenya's State broadcaster KBC is leading among those organisations and individuals of land rate defaulters to the County Government of Nairobi amounting to Sh47 billion.
Nairobi Governor Evans Kidero said on Thursday KBC is yet to pay a some Sh900 million in land rates and warned they would auction their property in efforts to recover the money. He added that the amnesty period that had been offered to the defaulters to pay the money will not be extended after it expires Friday. Kidero said in their one-month campaign, they intended to collect Sh15 billion in rates but so far they have realised Sh500 million. “Failure by these organisations to pay the money has really affected our operations. We inherited unpaid rates amounting to Sh47 billion,” said Kidero. He added that they intend to in a week’s time auction three prime properties in the city to reclaim their money. City Hall said it would take legal action beginning next week to recover the money owed by defaulters. “Legal action could mean auction of properties of those who don’t pay”. “It is a long legal process but we are ready to go there if these defaulters do not want to pay. We have already auctioned three and we intend to sell three others,” he added. He revealed that Kenya Sports Stadia owes the council Sh252 million, Kenya Airports Authority Sh153 million, Kenya Railways Sh146 million and Pensions Fund Sh302 million among other organisations. Kidero who addressed a press conference in his office said ignorance is the main cause of non-payment of the rates. He revealed they intend to launch a major sensitization exercise to ensure residents know their duties. Land rate defaults have been a major reason for poor revenue collection by county governments, whose budgets have continued to trail expenditure.