One item that appreciates in value overtime is Art. I am certain you thought I’d say Land. You are right! Land indeed appreciates in value over time. Whereas some would buy land to develop immediately or practice agriculture others simply purchase land for speculation.
Whichever the case might be, all land owners are subject to paying either land rates depending on the area or land rent if the title is on leasehold. What is the difference? Land rates and rents may be used interchangeably but they do have distinctive meaning. This article will help you understand better.
What is the difference?
Land rate is a type of tax that the land owners are expected to pay to the county or municipality where that parcel of land is registered. The amount varies depending on value of the land and access to services such as water, sewerage that the county government provides. Land rate is paid by both lease hold and freehold land owners.
Whereas, a title deed document shows ownership of a parcel of land. The title deed can either be freehold or leasehold. Lease hold title holders pay land rents. This is remitted directly to the government through the ministry of Land and Physical planning.
Modes of Paying Land Rates
There are 3 modes of acceptable payment options for your land rate or rent: –
Cash – this is the oldest mode which involves a visit to the county’s office and giving cash to settle your dues. A receipt should be issued by the officer upon receiving.
Bank transfer – having the correct land registration details, one can deposit money to the respective lands collection account. This might take 1 or 2 days to reflect on the other end.
Online payment– which is the most effective and time saving mode. This allows one to transfer funds from their account (Mpesa) to the lands portal and instant settle the rates or rent.
Whichever the channel to make payment, always keep proper records of the payment for avoidance of doubt in future in case you would wish to sell or transfer ownership.
Land rates and rent are due every end of the fiscal year i.e., end of march. Penalty accrues at the rate of 2% to 3% of the due amount. Owning land in Kenya comes with its obligations that should be met by the possessor.
In conclusion, this should not worry you as land is a promising investment for your generations. The government issues land rates and rent clearance certificate to proof settlement of the respective taxes.
One item that appreciates in value overtime is Art. I am certain you thought I’d say Land. You are right! Land indeed appreciates in value over time. Whereas some would buy land to develop immediately or practice agriculture others simply purchase land for speculation.
Whichever the case might be, all land owners are subject to paying either land rates depending on the area or land rent if the title is on leasehold. What is the difference? Land rates and rents may be used interchangeably but they do have distinctive meaning. This article will help you understand better.
What is the difference?
Land rate is a type of tax that the land owners are expected to pay to the county or municipality where that parcel of land is registered. The amount varies depending on value of the land and access to services such as water, sewerage that the county government provides. Land rate is paid by both lease hold and freehold land owners.
Whereas, a title deed document shows ownership of a parcel of land. The title deed can either be freehold or leasehold. Lease hold title holders pay land rents. This is remitted directly to the government through the ministry of Land and Physical planning.
Modes of Paying Land Rates
There are 3 modes of acceptable payment options for your land rate or rent: –
Whichever the channel to make payment, always keep proper records of the payment for avoidance of doubt in future in case you would wish to sell or transfer ownership.
Land rates and rent are due every end of the fiscal year i.e., end of march. Penalty accrues at the rate of 2% to 3% of the due amount. Owning land in Kenya comes with its obligations that should be met by the possessor.
In conclusion, this should not worry you as land is a promising investment for your generations. The government issues land rates and rent clearance certificate to proof settlement of the respective taxes.
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