Abstract:

This study evaluates the challenges of property taxation in Nairobi city. Property taxation if well exploited can be a major source of revenue at the local government level. Nairobi has not been generating adequate revenue from property taxation, yet this revenue source if fully exploited can be used to fund infrastructure services in the City. The study used survey design where interviews were done on officials under Land Valuation directorates of Nairobi. Review of documents was also done. The study established that property taxation in Nairobi City faces many challenges that relate to policy and administration of property taxation. The legal framework for property taxation is inadequate and has not been review to keep up with the increase property development in the City; Nairobi uses two systems of taxation, site value and area rating that has resulted to a narrow tax base; there are no regular revaluations of the tax base. Property taxation also faces the challenge of lack of p...