Mombasa fury over property tax rise

Mombasa residents, traders, developers and a section of leaders are up in arms over the county government’s move to revise the valuation roll on which taxes are calculated by as much as 3,000 per cent.

This is good news for the county government, which will collect more taxes, but bad news for property owners and those renting space because rates, and therefore rents, will likely shoot up sharply.

But the county government argues that the last time a general valuation of property was done was 27 years ago, property values must have gone up and the government is therefore not getting its fair share of rates.

UNREALISTIC

Among those opposed to the decision are Senator Mohammed Faki, the business community, property developers and residents who argue that the plan will hurt local businesses and increase the cost of doing business.

They also argued that high property taxes will scare away investors, already suffering due to the decline in tourism sector and the effects of the Standard Gauge Railway on Mombasa-based trucking and other transport-related businesses.

EXORBITANT

Some investors termed the percentage increase in property values as “unrealistic.”

“The main reasons for our objections are that no services are being provided and that the valuation is unrealistic and exorbitant,” MySpace Properties chief executive Mwenda Thuranira said.

Mr Thuranira added that a property which is currently valued at Sh300,000 in the roll will shoot up to Sh9 million.

“What we are seeing is what the municipal council used to do where they hike the rates so that owners will not be able to pay and then their properties will be auctioned. This is not fair and we are not going to allow it,” said Mr Thuranira.

REJECT

Mondolina Restaurant proprietor Fred Rukunga said his business will suffer heavily if the new rates are to be introduced.

“This is totally unrealistic. We the tenants will be the victims. We are going to be overloaded with taxes. It is absolutely inhumane and we will reject those rates,” said Mr Rukunga.

Mr Omar Fawaz who owns rental houses in Nyali said the new rates will hit the developers badly and may force tenants to leave for cheaper space in Kilifi and Kwale counties.

“If the county needs to see our business coming down, then let them introduce those rates. We do not see how they will benefit if we are to lose all our tenants?” said Mr Fawaz.

STAKEHOLDERS

Kenya National Chamber of Commerce and Industry Mombasa branch chair Rukiya Rashid called on the county to call a stakeholder’s meeting instead “of doing things on their own”.

According to the notice of draft valuation roll published in the Kenya Gezette, the county seeks to implement new rates by the end of this week. In the notice, it had given residents 21 days to raise any concerns.

Senator Faki, however, termed the notice defective, saying it does not comply with provisions which he said grants objectors 28 days and not 21.

The senator further said many businesses had been forced to relocate from Mombasa because of the depressed economy caused by the election.

TRIBUNAL

He said that the Standard Gauge Railway (SGR) has also affected business forcing many transporters to close down or scale down operations, thus the rates will further ruin their businesses.

He added that the new rates will also increase the cost of doing business and coming soon after the 8 per cent VAT slapped on petroleum products, it will further hit residents.

Last week, Lands, Housing and Physical Planning executive Edward Nyale said the county has provided an avenue for redress if the businessmen find the rates too high.

He said the county has provided an independent tribunal for the complaints, after which it will make a determination.

Property and land owners have been asked to visit Bima Towers to lodge their objections before October 24.