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Kenya: Kajiado County Loses Millions in Land Rate Row With Tata Chemicals Ltd

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4 years ago

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Nairobi — Kajiado county government has been losing revenue amounting to millions over uncollected land rates and royalties from Tata Chemicals Magadi Limited.

The company has been embroiled in a legal tussle with the county government over unpaid rates amounting to close to Sh14 billion.

According to the Auditor General’s report, in the financial year 2019/2020 alone, the county government had lost Sh10.6 million in revenue as the international firm had refused to pay the land rates contesting the rates in the County Finance Act (2016)

“The High Court ruled the law was procedurally passed and the county government has legal mandate, they now went to the court of appeal. We know they will lose because the current land rate is what everybody is paying,” said Kajiado Governor Joseph ole Lenku told Senate Public Accounts Committee.

Tata Chemical is accused of contravening local laws by failing to pay revenue to the county government according to the finance act.

The company is disputing the increased land rates from the initial Sh 2000 per acre to Sh10,000 per acre.

The Chair of the committee Ochillo Ayacko questioned why Kajiado county government and Tata Chemicals Magadi limited have failed to work on an amicable solution years after the tussle between the two emanated.

“This is a big issue; we can listen to it and make our recommendations. Just out of curiosity on the undisputed rate. Why can’t they pay what is not being disputed?” he questioned.

The county government has decried that Tata Chemicals has refused to pay the land rates to despite the court issuing orders directing the same.