An Evaluation of the Property Valuation Process for County Government Property Taxation, Nairobi City

  • Lucy Nyabwengi University of Nairobi
Keywords: County government, Property taxation, Property valuation


This study evaluates the valuation process for property taxation under the County government in Nairobi. The valuation process is an important element of the property tax administration process because it links the market value of the property with the tax paid. Where the valuation process is unable to capture the full market value of the property, the County government does not get adequate revenue from property taxation and there is unfairness in taxation. Data was gathered through interview of officials in the Land Valuation Directorate of Nairobi City County to evaluate the property valuation process. Documentary search of the laws that govern property valuation process for taxation purpose at the county level was also done. Literature review of best practices in property valuation process in the world was done with focus on South Africa and USA. Data analysis was done through thematic analysis and ratios. The study established that Nairobi city has not yet adopted mass valuations, it uses outdated valuation registers that are over thirty years old and does not carry out regular revaluations. There is no independent body that monitors the valuation process in the County. The existing legislation has not promoted best practices in the valuation process. All these issues have resulted in the city not fully exploiting the revenue potential in property taxation in Nairobi City. The study recommends that the laws governing property taxation at the county level should be amended to reduce the period between revaluations to a maximum of five years; allow for use of mass valuation techniques and establish a body that monitors and regulates the property taxation process including valuation. The county should also use capital value as the basis of valuation and not unimproved site value. Nairobi County government should regularly carry out revaluation of the property tax base to boost its revenue.