National Rating Bill becomes law establishing a national framework for land and building rates » Capital News

NAIROBI, Kenya, Dec 5 – The National Rating Bill (National Assembly Bill No. 55 of 2022) has been signed into law by the President William Ruto.

The new legislation seeks to create a standardized framework for county governments to assess and impose rates on land and buildings.

It also establishes mechanisms to enhance accountability in the use of revenues collected from these rates.

The National Rating Act introduces a comprehensive framework for imposing rates on land and buildings by county governments, and valuation of rate-able property, with the use of modern technology to ensure accuracy and efficiency.

The newly signed law also establishes the Office of the Chief Government Valuer to oversee valuation processes nationwide and provide expert advisory services and enables formation of the National Rating Tribunal, comprising up to 15 members, to resolve disputes related to property valuation and rating.

The law explicitly excludes freehold agricultural land from its application, focusing instead on urban and rate-able properties.

Counties are expected to adhere to constitutional public finance principles, including fairness, accountability, and responsible financial management.

Initially passed by the National Assembly in October 2023, it faced amendments by the Senate in June 2024. A mediated version was later agreed upon by both Houses in November 2024, paving the way for presidential assent.

The new Act replaces the Rating Act and the Valuation for Rating Act, which were deemed outdated.

By doing so, it introduces modernized guidelines for property valuation and taxation, promoting equity and efficiency in revenue collection for counties.

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