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New crackdown to recover Sh15bn owed by defaulters

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City Hall has launched a crackdown on rate defaulters in a bid to recover Sh15 billion owed by developers.

On Thursday, county officers raided eight high-end buildings and closed them down over huge rates arrears.

The eight owe the county government a total of Sh7.8 million.

Erected closure notices on in front of the buildings. Tenants of the buildings will pay rent to City Hall until the county recovers the full amount.

This is provided for in the County Rating Act. The law gives the county government authority to place a charge on a property which has not paid rates.

Most of the affected buildings are in Central Business District, Kilimani, Thika Road, Ngara area and Parklands.

Governor Mike Sonko said the county has been crippled financially and is facing challenges in implementing development projects because of the huge debt owed by developers.

“Let me make it very clear that there shall be no waivers and we shall stick to our notice. The county does not intend to give waivers this year, so the defaulters should pay their rates,” Sonko said in a statement yesterday.

Rates is one of the main revenue stream for Nairobi. The county rakes in over Sh3 billion annually from rates. Other streams are parking, single business permit, outdoor advertising and building approvals.

This is the second clampdown by the county government with the first one in August netting Sh300 million. The August exercise was carried out by officials from the county’s revenue department.



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