Prudential Assurance building clamped down

The Nairobi County Government has clamped down Prudential Assurance Building in Nairobi’s Central Business District (CBD) due to property rate arrears amounting to Sh1.8 million.

According to the building caretaker, Patrick Inzira, the owners have delayed payment by only 12 days; he now terms the move malicious since the building was also clamped down last year.

Inzira said the deadline for the payment was the 31st of March and alleged that the Nairobi County Government had not issued them with any notice prior to the closure.

Documents show that the county government demands Sh1.7 million as payment for land rates and Sh103,747 as penalties accrued before the building can be opened.

In February 2015, the Nairobi County Government said it was targeting to collect Sh28 billion in land rate arrears owed to it by property owners.

Apart from taking over buildings within the central business district, City Hall said it would target property located in the outskirts of the city.

Deputy Chief Revenue Officer Shaban Asman said 100 buildings within the city would be taken over to recover rates owed to the county government.

“So far we have clamped down 13 buildings and we will collect rent from tenants until we recover our debt,” he said.

In May 2015, the Nairobi County Government extended its operation to clamp down against rates defaulters to Kilimani Estate.

The move came after it was established that most defaulters had sought safe havens in such affront estates.

The Chairman for the Rates Steering Committee, John Ntoiti, said more than 14 private properties owed the county more than Sh20 billion.

“The initial debt stood at Sh60 billion before the inception of the clamp down operation. Currently we have recovered Sh2.9 billion with 80 percent compliance within the CBD,” said Ntoiti.

He said Muthaiga Estate, Kilimani and Westlands owed the county government over Sh40 billion.