Examining the factors influencing the collection of land rates by county governments - a case of Nairobi county
Biwott, Sharon Jematia
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Tax administrators including those in charge of land rates collection require information on tax payers which enhances land rate revenue collection. The aim of this study was to examine the factors influencing the collection of land rates by the County Government of Nairobi. The study adopted a descriptive design to obtain qualitative information on factors influencing the collection of land rates. Quantitative and qualitative methodologies were used to generate primary data. A questionnaire was used and sample size of 413 was determined of which 120 responded. Data analysis was done on the relationship between Land Valuation Methods/Techniques, Land Rates collection strategies and Jurisdiction and administration on one and Land Rates Collection. The findings revealed that the greatest problem in county governments is lack of proper property tax registers. This resulted in lack of active property markets, poor methods of land valuations, locations of properties were not properly known and sometimes owners were anonymous. In addition, Nairobi County Government had resorted to waiver of land rates arrears as a land rate collection strategy. Waiver of land rate arrears is the collection strategy that is used more with all the 15 employees who participated in the study saying that waiver of land rate arrears is used to a very large extent compared to seizure and subsequent sale of properties. Also, use of private debt collectors was the least used method due to cost implications, time wasting and corruption or being compromised. Moreover, what was ailing Nairobi County government was lack of proper land valuation methods. This study recommends that Nairobi County Government starts by developing a simple land valuation method that is understood by all land rates payers then proceed to implementing a land rate collection strategy that will maximize land rates collection.