City Hall to auction property of rates defaulters as debt collectors step in
Nairobi
By
Pkemoi Ng'enoh
| Mar 25, 2026
Nairobi City County has opted to engage professional debt collectors to enhance the collection of revenues from land rates ahead of the March 31, 2026 deadline.
This means City Hall has shifted from facilitation to enforcement, which initially allowed defaulters to use payment plans, stakeholder engagement and in some cases leniency.
At the same time, property owners with outstanding balances now face penalties, legal proceedings, and the possibility of property auctions if arrears persist.
However, the new shift, according to the Revenue Department, will follow a structured legal framework under the Rating Act, 2024, ensuring due process even as pressure mounts on defaulters.
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"We are now taking the next step after working with all stakeholders for over a year and providing all mechanisms for debt payment, including payment plans," said Receiver of Revenue, Tiras Njoroge
He said the move is not symbolic but structured, deliberate, and backed by law citing that property owners who have consistently paid their rates should not carry the burden for those who have not.
"By tightening compliance, the County is protecting both its revenue base and the integrity of public service delivery," he added
City Hall says this is also aimed at sealing revenue leakages that have strained the county’s ability to deliver essential services.
Land rates, a key source of funding for infrastructure such as roads, drainage, and waste management, have seen uneven compliance.