City Hall seeks KRA help to collect rates

August 21, 2012 3:34 pm
He urged those who have not done so to ensure that they use the window of opportunity provided to clear their debts/FILE

, NAIROBI, Kenya, Aug 21 – The City Council of Nairobi is seeking to partner with the Kenya Revenue Authority (KRA) to bolster its rates collection capacity from residents.

Speaking after extending the rates default waiver period by a further seven days, Mayor George Aladwa stated that this will strengthen City Hall’s revenue base and enable it provide needed services.

He urged those who have not done so to ensure that they use the window of opportunity provided to clear their debts.

“I have heard the plea of Nairobi residents. There are those who have taken bank loans and there are those who have plots that they have subdivided to the public,” he said.

“So after consultations with the Local Government Ministry, the Town Clerk and councillors, we have agreed to extend the waiver period by seven days,” he stated.

He pointed out that should they fail to heed his call; no mercy will be extended as the council will repossess their property.

“I have increased the number of days to seven and anyone who does not take advantage of this provision will only have themselves to blame. We shall repossess their property and sell it to recover our dues,” he said.

The deal with KRA is a culmination of negotiations which have been going on for one year between the council’s revenue department and KRA.

This is the second attempt by the council to engage KRA to collect land rates on its behalf after a similar attempt collapsed in 2005.

Aladwa stated that all payments will be made through the National Bank of Kenya in favour of the Commissioner of Domestic Taxes, who will in turn deposit the funds to the council’s account.

He said that the move is meant to enhance the revenue collection for the council, which relies on the Local Authority Financial Management System.

He explained that with the completion of the partnership with KRA, the issue of defaulters will no longer be there as the taxman has all details and everyone who owes the council will be followed to his doorsteps to pay.

The council is due to roll out an e-payment system that will allow its clients to make payment of rates away from the office and eradicate long queues in its offices.

Motorists will also be able to pay their parking fees through mobile phones following the signing of an E-Payment Services agreement between the Council and mobile service providers.


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