Serene Park
Property tax is an essential part of revenue generation for the Kenyan government. It plays a significant role in funding public services and infrastructure development. In this article, we will delve into understanding what property tax is in Kenya.
What is Property Tax?
Property tax is levied on individuals who own real estate property, including residential homes. The tax is paid to the national government, and the revenue generated from it is utilized for financing various community services such as schools, parks, and infrastructure projects.
In Kenya, the property tax rate for residential homes varies depending on several factors. These factors include the location of the property, its value, and the local government’s policies on property taxation.
The valuation of properties in Kenya is by the government’s Ministry of Lands, Housing, and Urban Development, which is responsible for determining the market value of properties in various regions of the country.
The property tax in Kenya is usually calculated as a percentage of the property’s market value and is determined by the government using property information.
It is worth noting that the property tax rate for residential homes in Kenya varies from one location to another. For example, properties in urban areas, such as Nairobi, Mombasa, and Kisumu, tend to have higher tax rates than those in rural areas because urban areas have more services and infrastructure, which require more funding from the local government.
Another factor affecting the property tax rate in Kenya is the local government’s policies. Some counties have higher tax rates than others, depending on the services and projects they provide. For instance, counties that have invested heavily in infrastructure tend to have higher tax rates.
The property tax in Kenya is also affected by exemptions and deductions. The government provides exemptions for properties, such as religious institutions and public schools.
To ensure total collection of property tax, the government has introduced the use of technology to improve the property tax collection process.
The government has developed an online platform where property owners can access their tax records, make payments, and submit requests for exemptions and deductions, making it easy for property owners to comply with their tax obligations and improving the efficiency of the tax collection process.