Parliament Seeking To Introduce Taxing of Freehold Title Deed, NLC Opposes This

The bill seeks to force holders of freehold title deeds to pay an annual fee over and above land rates.

Parliament Seeking To Introduce Taxing of Freehold Title Deed, NLC Opposes This
  • A freehold title deed does not have time limitation on ownership of the property. One owns it indefinitely.
  • The bill seeks to force holders of freehold title deeds to pay an annual fee over and above land rates.
  • The National Land Commission, led by its CEO Kabale Tache, oppose the bill citing double taxation.

The National Land Commission (NLC) has raised objections to a proposed amendment that could significantly affect property owners in urban areas. Sponsored by Majority Leader Kimani Ichung’wah, the Land Laws (Amendment) Bill 2023 seeks to introduce an annual levy on freehold land within or near urban zones.

READ ALSO: Land Laws Amendment Bill 2023 (What you need to know about the Proposed Increase in Land Rates)

NLC CEO Kabale Tache expressed concerns about this, citing double taxation, arguing against the levy before the National Assembly’s Committee on Lands. The amendment, if passed, would mandate owners of freehold land in urban areas to pay an annual levy equivalent to leasehold land rates, potentially conflicting with existing legislation.

Moreover, the bill aims to streamline various land laws and empower the Lands Cabinet Secretary in land acquisition for state projects, currently a role held by the NLC. It also proposes amending the Land Registration Act of 2012 to block registration of land until all rate obligations are met.

READ ALSO: What to Know About Property Laws in Kenya

For property owners in areas like Syokimau, Kiambu, Thika, Mlolongo, and other urban centers near Nairobi, these changes could mean additional financial burdens. The bill’s provisions would require them to pay an annual fee mirroring land rates paid for leasehold properties in similar areas.

While the proposed amendments aim to enhance efficiency in land matters, they have sparked debate due to potential economic strain on Kenyans. As discussions continue, property owners are advised to stay informed about the evolving legislative landscape to understand the potential impact on their properties and finances.

READ ALSO: Can a foreigner own land in Kenya?

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