Tough times await property owners in Nakuru County after the devolved unit moved to develop a new property valuation roll that would enable it to increase land rates.
The levying of land rates has been a thorny issue between residents and successive local governments for the past three decades.
Landowners have been filing numerous court cases challenging the validity of any newly developed valuation roll.
According to county government records, land rates account for almost 20 per cent of the annual local revenue collection that fluctuates between Sh2billion and Sh2.4billion.
Although the Environmental and Land Court judge, Justice Millicent Odeny slammed the brakes on the latest move by the county to validate the draft Valuation Roll 2017, property owners and leading business firms are apprehensive.
They are up in arms over the proposal as the move will hurt owners of rateable properties in the city and urban centres across the county.
Over 210 leading individuals including local leaders, businessmen, lawyers, doctors, university lecturers, other professionals, and major business firms have filed the suit challenging the county government move, which they argue flies in the face of the law.
The petitioners in the suit filed by lawyer Lawrence Karanja of Mirugi Kariuki advocates argue that the county government has violated various law provisions while formulating the draft valuation roll. Also listed as respondent in the suit are Lands and Urban Planning and Finance and Economic Planning executives.
Justice Odeny ordered the petitioners to serve the court papers to the respondent and have the matter mentioned before her on October 22.
“Temporary conservatory orders are hereby granted staying the process of validation of the Nakuru County Valuation Roll 2017 by the respondents pending the hearing of the application inter-parte,” the judge ordered.
The contentious valuation roll was first prepared in 2017 during the tenure of the county’s inaugural Governor Kinuthia Mbugua.
However, its implementation was put into abeyance until recently when it was adopted by the current regime headed by Governor Susan Kihika.
The valuation roll is normally used by the county government as the basis for the imposition of new rates on plot owners.
The increase in land value as captured in the valuation roll would lead to a rise in rates charged to property owners. The county government has been collecting a huge sum of money as rates from numerous plot owners spread across major towns and townships in the county.
The defunct Municipalities and County Councils of Nakuru faced numerous legal suits over their attempts to hike land rates within their respective areas of jurisdictions.
Sections of residents had also in the past petitioned the Nakuru County Assembly to intervene over what they termed as an unlawful increase in annual land rates.
In June 2020, the assembly ordered the county government to reduce land rates after it endorsed a petition by 25 landowners along George Morara Road in Shabab Ward.
The assembly’s Lands, Housing and Physical Planning Committee report stated that the erroneous rates paid by the petitioners should be transferred to the subsequent years to clear the pending arrears.
In 2007, the Municipal Council of Nakuru was embroiled in a protracted court battle with 169 residents who objected to the implementation of the Valuation Roll 2005.
The residents in their suit filed in 2007 argued that the council had unlawfully drafted the valuation roll after 13 years after the previous roll was adopted in 1992. The law required that a valuation roll be formulated after 10 years.
Residents in previous litigations had also raised issues relating to the legality of the Valuation Court which they argued lacked independence as it was established by the local authority.
The legal battle involving the 169 petitioners which was litigated both at the High Court and in the Court of Appeal was however determined in favour of the civic body which received the green light to adopt the property roll and to impose new rates on plot owners.
The county government which came into operation after the 2013 general election following the enactment of the 2010 constitution has been using the 2005 property listing roll to impose rates on land owners.
The current court dispute arose after the county government placed newspaper announcement urging plot owners to inspect the Draft Valuation Roll 2017 and file any objections before its adoption.
Lawyer Karanja argued that the county government prepared the contentious valuation roll without first enacting law to guide its preparation and imposition of taxes as required by the constitution.