The National Rating Bill, 2022
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
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Final
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Establishment of the National Rating Tribunal
Under Section 37, the Bill establishes the National Rating Tribunal to hear and determine disputes and appeals regarding land valuation and rating. Appointed by the Judicial Service Commission, the Tribunal will consist of a Chairperson (qualified to be an Environment and Land Court judge) and up to 14 other experienced professionals serving on a part-time basis.
Five-Year Valuation Roll Cycles
Section 29 mandates that county governments prepare a valuation roll of all rateable properties within the county every five years. The life of a valuation roll may only be extended by a maximum of two years, subject to approval by the respective county assembly.
Strict Qualifications for Lead Valuers
To enhance professionalism in property assessment, Section 21 stipulates that any lead valuer appointed to prepare valuation rolls must be registered by the Valuers Registration Board under the Valuers Act and have at least seven years of experience in valuation.
Annual Contributions in Lieu of Rates
Section 20 introduces a clear mechanism for public land held by National Government entities. The National Government is required to remit an annual contribution in lieu of rates to the respective county government. Claims must be submitted via the National Land Commission three months before the rates fall due.
New Fees and Penalties for Non-Compliance
Section 34(2) introduces a non-refundable objection fee of not less than KSh 10,000 for challenging draft valuation rolls. Under Section 52, failing to comply with a lawful order of the Tribunal constitutes an offence punishable by a fine of up to KSh 100,000, imprisonment for up to six months, or both.
Bill No.
Bill No. 55 of 2022
Gazette No.
Supplement No. 185 of 2022
Background
The National Rating Bill, 2022 seeks to provide a uniform national framework for county governments to value rateable property and impose land rates, replacing outdated legislative mechanisms. It formally repeals the Rating Act (Cap 267) and the Valuation for Rating Act (Cap 266) to align property rating with the devolved governance system established under the Constitution of Kenya.
Key Amendments
- Repeal of Cap 267 and Cap 266: Under Section 55, the Bill completely repeals the legacy Rating Act and Valuation for Rating Act.
- Establishment of the National Rating Tribunal: Section 37 establishes a new judicial body to handle all appeals and disputes arising from county property valuations and rating decisions. Appeals from the Tribunal's decisions lie with the Environment and Land Court (Section 53).
- Property Exemptions: Section 36 exempts land used exclusively for public purposes, including public religious worship, cemeteries, public health facilities, public educational institutions, dams, and national monuments, provided they are not used for profit or residential purposes. Freehold agricultural land is also fully excluded from the Act's application (Section 5).
New Obligations
- Valuation Roll Cycles: County governments are obligated to prepare a valuation roll every five years (Section 29). This can be extended by a maximum of two years with county assembly approval.
- Public Notification & Objection: Before adopting a rating scheme, County Executive Committee (CEC) members must publish a 60-day notice in the Gazette and national newspapers to invite public comments (Section 10). To challenge a draft valuation roll, objectors must file a notice of intention and pay a non-refundable fee of at least KSh 10,000 (Section 34).
- National Government Contribution: For public land held by national entities, the National Government must pay an annual contribution in lieu of rates (Section 20). Counties must lodge these claims through the National Land Commission three months before the rates fall due.
- Valuer Qualifications: Any lead valuer appointed to prepare a valuation roll must be registered under the Valuers Act (Cap 532) and possess a minimum of seven years of experience in valuation (Section 21).
Penalties
- Non-Compliance with Tribunal Orders: Under Section 52, any person who fails to comply with a lawful order or decision of the National Rating Tribunal commits an offence and is liable to a fine not exceeding KSh 100,000, imprisonment for a term not exceeding six months, or both.
- Rate Defaults: Section 19 empowers county governments to levy penalties at the prevailing Central Bank rate on unpaid rates, deny county services, create a charge on the land, appoint a receiver to collect rent, or auction the property at market value.
Transitional Provisions
- Conformity of Existing Rolls: Under Section 57, existing valuation rolls prepared before the Act are saved. However, if they do not conform to the provisions of this Act, county governments must bring them into conformity within 24 months of the Act's commencement.
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