Land rates and council rates in Kenya: what the county actually charges in 2026
Land rates, ground rent and county service charges are confusing line items every Kenyan property owner pays but few understand. Here is the honest 2026 guide on what each charge is, who collects it, how it is calculated and what happens when you do not pay.
Land rates, ground rent and county service charges are confusing line items every Kenyan property owner pays but few understand. Three different charges, three different collectors, three different methods of calculation. Here is the honest 2026 guide.
County land rates
County government tax on the unimproved site value of land within the county. Charged annually under the Rating Act and the various county finance acts.
- Who collects: the county government (Nairobi City County, Kiambu County, etc)
- What it covers: a general property tax; not earmarked for specific services
- How it is calculated: a percentage of the unimproved site value as determined by the county valuation roll. Nairobi typically 0.115 percent. Other counties vary
- When due: annually, by 31 March in most counties
- Penalty for late payment: interest typically 2 to 3 percent per month
Ground rent (land rent)
Annual rent payable to the national government on leasehold land. Under the Land Act, the national government is the ultimate landlord of leasehold property, and ground rent is the formal recognition of that.
- Who collects: Ministry of Lands (national government), now mostly through Ardhisasa
- Applies to: leasehold property only (not freehold)
- How calculated: defined in the lease as a fixed amount or formula. Typical residential leasehold: KES 2,000 to KES 30,000 a year
- When due: annually
- Consequence of non-payment: can prevent registration of subsequent dealings; long-term arrears can theoretically lead to forfeiture (rare in practice)
Single Business Permit
Annual county business permit. Applies to commercial property and short-stay rental operations.
- Who pays: business or commercial property operator
- Applies to: Airbnb and serviced apartment operators, commercial tenants and landlords
- Cost: KES 5,000 to KES 100,000+ depending on category
County service charge
Some counties charge an additional service charge for waste collection, sewerage and related local services. Nairobi has a Sewerage and Solid Waste Management charge in addition to the rates above.
How to pay
- County rates: Nairobi via the Nairobi e-citizen portal or NCRPS; other counties via county revenue offices and increasingly via digital platforms
- Ground rent: Ardhisasa for properties already on the platform; paper at the Ministry of Lands offices for the rest
- Single Business Permit: county portal or county offices
For diaspora owners
- Set up annual reminders; the bills do not arrive at your foreign address
- Pay through your property manager or your lawyer
- Keep digital receipts; you will need them for transfer or sale
- Check arrears every 24 months; small arrears compound silently with penalties
What happens when you do not pay
- Rates clearance certificate is required for property transfer; arrears block sale
- Penalties accumulate at 2 to 3 percent per month
- Formal demand notices issued by the county
- County publishes lists of defaulters; serious arrears can lead to property attachment and auction (rare but real)
Land rates and ground rent are the smallest property taxes Kenyan owners pay. They are also the ones owners forget most often. The bill arrives quietly. The penalty does not.
How Goldstay handles it
For management clients we maintain the annual rates and ground rent payment calendar and ensure clearance certificates are in good order at all times. Read also our pieces on using Ardhisasa and the property tax debate.
If you want the tenancy run end to end, that is long-term rental management.
Goldstay Research covers macro property data, neighbourhood pricing, rental yields and policy across the Kenyan and Ghanaian markets. The desk publishes the firm's view on market trends, oversupply, currency and the longer term direction of property values.
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