Department of Land Valuation

Department of Land Valuation

The Valuation Department is one of the technical departments within the Ministry of Physical Planning. It is headed by the director of Land Valuation; formerly referred to as the Chief Government Valuer. The Department plays a key role in providing valuation services which forms a basis for revenue collection (Stamp Duty, Ground Rent and Rates) or determination of appropriate market rents and market values for leasing or sale and purchase for and by all National and County Government Departments, Commissions, Agencies, Parastatals, Institutions of Higher Learning, Public Schools and all public bodies.

Valuation of property and determination of fair market rents and values ensures that all revenue due to Government is collected and public property is disposed of or acquired in a manner that protects the monetary interests of The Government of Kenya.

Mandate Of The Valuation Department

The Chief Government Valuer or the Director of Land Valuation is the Principal Advisor to Government on all valuation matters. These include but are not limited to:-

  1. Valuation for Stamp Duty to enhance revenue generation from transfer of land. The Department of Valuation determines the market value on each property to ensure that the right amount of revenue is collected. Property owners tend to under-declare the sale prices of property in an attempt to avoid paying duty.
  2. Determination of Ground Rent on all leasehold properties. Government being the “landlord” or lessor of all leasehold properties, charges rent for leasing out that property. Ground rent is determined based on the approved user and location of a property. For Example, commercial properties located within the central business district of Nairobi fetch higher ground rents than residential properties in the suburbs like Runda. When a leaseholder wants to subdivide or make changes to the user of the property for example from residential to commercial, valuation is required to determine the enhanced ground rent.
  3. The Ministry of Transport, Infrastructure, Housing and urban Development refers all applications for leasing of private properties for use by government to the Department of Valuation. The department conducts a rental analysis and advices the Ministry of Transport, Infrastructure and Urban Development on appropriate market rents and market values to be adopted in the preparation of lease and sale agreements. Other Government Departments like the Department of Defence seeks the professional services of the Department of Valuation in similar cases of leasing and sale or purchase
  4. All Government Ministries and Departments regularly engage the services of the Department of Valuation for valuation of their fixed and loose assets either for insurance or book keeping purposes.
  5. The Ministry of Foreign Affairs, periodically seeks the services of the Valuation Department to conduct valuations of all government owned properties in foreign missions for various purposes.
  6. The Department is responsible for the preparation and continuous review of the National Land Value Index to contain cases of land speculation especially for large scale infrastructure development.