By Dr. Edris Omondi (Advocate)
(Strategic Thinker, Author, Motivational Speaker, Preacher and a Lawyer)
Kenya’s devolved system of governance has long struggled with inconsistencies in property valuation and taxation, leading to revenue collection inefficiencies. The National Rating Act 2024, which repeals the outdated ‘Rating Act’ and ‘Valuation for Rating Act’, seeks to standardise property valuation and taxation across all 47 counties. However, its implementation won’t be without legal battles, financial losses for counties that had already developed their own valuation laws, and debates over its constitutionality.
This article provides a comprehensive analysis of the new law, its implications, and the challenges the 47 counties are likely to face in complying with it.
Why the National Rating Act 2024?
Previously, counties operated under the Rating Act (Cap 267) and the Valuation for Rating Act (Cap 266), which were relics of the defunct local government system. These laws were ill-suited for devolution, leading to:
- Inconsistent valuation methods – Counties used different criteria, causing unfair taxation.
- Weak enforcement – Many property owners defaulted without consequences.
- Revenue leak – Poor systems allowed evasion, depriving counties of crucial funds.
The National Rating Act 2024 was introduced to:
- Harmonise property valuation– Ensuring uniformity across counties.
- Strengthen enforcement – Allowing auctioning of properties for unpaid rates.
- Enhance transparency – Reducing corruption in valuation processes.
Key Provisions of the National Rating Act 2024
- Repeal of Old Laws – Nullifies all county-specific rating laws, forcing counties to adopt the national framework.
- Standardised Valuation – Establishes a uniform method for assessing property values.
- Strict Enforcement – Defaulters risk property auctions if they fail to pay rates.
- County Compliance– Requires counties to align their systems with the new law.
Constitutionality of the National Rating Act 2024
The law has sparked debate over whether it infringes on ‘county autonomy’ under Article 209(3) of the Constitution, which grants counties the power to impose property rates.
Critics argue:
❌ Overreach by National Government – The Act centralises what should be a devolved function.
❌ Wasted Investments – Several Counties spent millions developing their own valuation laws, now rendered obsolete.
Proponents counter that:
✅ Uniformity is necessary – Disparities in rates discouraged investment and created confusion.
✅ Stronger revenue collection– A standardized system reduces loopholes and increases county incomes.
Ideally, sooner or later, the courts may ultimately decide whether the law respects devolution or undermines it.
Pros of the National Rating Act 2024
✔ Fairness – Prevents arbitrary valuations that favour politically connected individuals.
✔ Increased Revenue – Stronger enforcement means more funds for county services.
✔ Investor Confidence – Predictable taxation attracts real estate development.
Cons and Challenges
❌ Legal Battles – Counties are likely to challenge the law in court.
❌ Financial Losses – Millions spent on county-specific valuation laws are now wasted.
❌ Implementation Delays– Transitioning to the new system may take years, slowing revenue collection.
The Way Forward
1. Court Clarification– The judiciary should determine whether the law respects devolution.
2. County Engagement – The national government should consult counties before full implementation.
3. Phased Transition – Allow counties time to adapt without losing revenue.
Conclusion: The National Rating Act 2024 is a bold step toward streamlining property taxation in Kenya. However, its top-down approach risks alienating counties that have already invested in their own systems. For the law to succeed, the national government must balance standardization with respect for devolution, or risk prolonged legal battles and
