An aerial view of City Hall, Nairobi. [File, Standard]

Government and private entities in the capital owe City Hall Sh120 billion in land rates, the county has said.

The county's Budget and Appropriations Committee yesterday invited officials from the rates department to explain why it had not been meeting its targets since 2013.

Challenges such as lack of title deeds for property, an outdated valuation system and long legal processes, the committee heard, hindered efficient collection of the rates.

Head of Rates Department Albert Okiro told the committee Government institutions such as Parliament, Department of Defence, Central Police, National Treasury, Vigilance House, and other affiliated agencies were the biggest defaulters in land rates.

Big defaulter

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According to a geospatial report by the National Government, only 150,000 property owners of more than 1.5 million paid land rates in Nairobi.

“We are owed Sh120 billion in land rates from property in the city. The national government is one of the biggest defaulters since it has a lot of property in the Central Business District that do not pay land rates,” said Mr Okiro.