Kenya's property tax system is set for a major overhaul, with the National Treasury Cabinet Secretary (CS) Njuguna Ndung’u proposing a reevaluation that could lead to a fivefold increase in taxes.

Ndung’u, speaking at the 12th African Fiscal Forum, highlighted the system's stagnation.

"The country's property taxes have remained unchanged since the 1970s, necessitating re-evaluation," Ndung'u stated.

He argued that the current structure has reached its limit, stating, "We have reached the end of the road with the tax regime as presently structured and there's a need for redesigning it."

The proposed changes outlined in MTRS 24/25 – 26/27 encompass two key areas: property mapping and harmonizing rental income tax with corporate income tax.

Ndung’u emphasized this point, noting, "MTRS 24/25 – 26/27 speaks of mapping out property & harmonising rental income tax with corporate income tax."

While details remain scarce, the potential for a significant increase in property taxes has sparked discussions.

The government sees this as a crucial step to bolster tax revenue and redesign a system considered outdated.

This proposal, if implemented, could significantly impact property owners and the real estate market in Kenya.