35. National Rating Bill, 2022

The Bill provides a comprehensive framework for imposition of rates on land and buildings by county governments; for valuation of rateable property and for appointment and powers of valuers.

Quick Link: http://kenyalaw.org/kl/fileadmin/pdfdownloads/bills/2022/TheNationalRatingBill_2022.pdf

· This Bill which is currently pending in Parliament following the First Reading, seeks to repeal and replace both the Valuation for Rating Act as well as the Rating Act.

· One of the innovations is in section 3 of the Bill which lists the objects of the Bill in enhancing the use of appropriate technology in undertaking valuation for rating and rating-related purposes. The use of technology is likely to expedite these processes. Section 6 provides that each county government shall establish or employ appropriate technological systems in the preparation and implementation of the valuation roll or supplementary valuation roll.

· Section 12(2) provides that a county government shall consider the different categories of properties for purposes of payment of rates including residential properties. The category of property, whether residential, commercial or agricultural may therefore affect the amount of rates levied by a county government. This can be employed by counties in incentivizing a particular land use, say residential, by reducing the rates payable by a landowner relative to other uses.

· Section 17 allows a property owner to apply, to a county government before the payment of the rate becomes due or within 14 days of such payment becoming due, for remission of such rates on rateable property. Section 17(5) provides that where no response is received within 60 days of such application, it will be deemed that such remission has been accepted.

· Section 22 now allows for appointment of a private valuer (in private practice) to prepare a valuation roll. This is expected to expedite these processes far from the current practice of relying on the government valuers who are few and may be overworked.

· Section 37 establishes the National Rating Tribunal to hear and determine all disputes related to rating. Section 40 requires the Tribunal to determine a dispute within 60 days.

· The Bill also modernizes the rating laws by providing for up-to-date nomenclature which also recognizes the current devolved regime and governance structure.

· In terms of how the Bill will relate with the national government and the county governments, the Bill (if it becomes law) is simply to provide a guide to all county governments (which are the rating authorities) on how to go about imposing rates. At present, different county governments include modalities in charging and assessment of property rates in their annual Finance Bills/Acts.