- The Nairobi City County Cabinet, chaired by Governor Sakaja Johnson, approved a fresh application process for land rates exemptions on October 13, 2026
- All previous exemptions granted under repealed legislation must now be reviewed against the National Rating Act, 2024, which took effect in December 2024
- Private hospitals, schools, sports clubs and charitable institutions may lose exemptions they previously held under the old law
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Amos Khaemba, a journalist at TUKO.co.ke, brings over four years of experience covering politics and current affairs in Kenya.1
The Nairobi City County Cabinet has directed all property owners and institutions holding land rates exemptions to reapply, following the introduction of the National Rating Act, 2024, which repealed the laws under which most of those exemptions were originally granted.
Governor Sakaja Johnson chaired the cabinet session on October 13, 2026, at which the resolution was passed.
The decision requires City Hall's Lands sub-sector to review all exemption claims against the revised legal framework, verify property use through site inspections, and update county records ahead of the January 1, 2027 billing cycle.
What the new law changes
The National Rating Act, which came into force on December 24, 2024, narrows the categories of property eligible for exemption.
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Land used for public religious worship, cemeteries, crematoria, public health facilities, public educational institutions, libraries, museums, public outdoor sports grounds, dams, wayleaves and national monuments continues to qualify. Freehold agricultural land and land used exclusively for public purposes, such as roads, utilities and parks, is also excluded from county rates.
The key departure from the previous framework is that private institutions no longer benefit from the same blanket protections.
Under the repealed laws, hospitals, schools and sports grounds were exempt regardless of ownership, provided they were not operated for profit.
The new law restricts those exemptions to specified public facilities, meaning private hospitals, clinics, schools, colleges, universities and sports clubs could now face rate liability. Charitable institutions and student hostels also lose the express exemptions they previously enjoyed.
Religious institutions retain protection for land used for worship, but any commercial development on the same plot, such as rental units or retail premises, will not automatically qualify.
Governor Sakaja addressed this directly: "Places of worship remain protected, and rightly so. But a block of shops or flats on the same compound is a business, and the law now treats it like one."
Landlords who lease property to foreign embassies or diplomatic missions will also be liable for rates where those properties remain registered in their names.
How to Apply
Speaking to TUKO.co.k, County Receiver of Revenue Tiras Njoroge confirmed that applications must be submitted to the County Executive Committee Member responsible for Lands at City Hall.
"Required documents include a plot or land reference number, a rates account number, proof of ownership, and the specific provision of the Act under which the applicant seeks exemption. Supporting evidence of current property use, such as photographs, registration documents or a site plan, is also required. Where land serves more than one purpose, applicants must clearly identify the portion being claimed for exemption," Njoroge said.
The county has also clarified that for properties previously exempt, land rates began accumulating from the date the National Rating Act came into operation, meaning outstanding amounts may already apply even before the 2027 billing cycle begins.
Source: TUKO.co.ke