No abstract

One of the services that have been poorly provided in the urban areas in Kenya is water and sanitation. There are many reasons, which can be attributed to poor provision of water and sanitation as undertaken by the local authorities in Kenya. The path to remedy the poor provision of water and sanitation has been charted in privatisation in the form of commercialisation. Commercialisation in Kenya was first implemented on an experimental basis in three urban areas: Nyeri, Eldoret and Nakuru. This involved formation of a publicly owned water company as an agent of the local authority. The companies formed as a result were set up and operated according to the provisions of the Companies Act chapter 486 of the Laws of Kenya. This paper looks at the genesis of privatisation of water services based on the contributions of GTZ, UWASAM and KFW to an experiment in formulating and implementing privatisation in the three urban areas. The outcome of the experiment is then compared to the current on-going exercise of water privatisation by local authorities. Privatisation of water and sanitation services is expected to solve the problem of poor and inadequate service provision that hitherto characterised urban areas. It would do this by achieving its goals of decentralisation and economic viability. However, the outcome of the experiment indicated that privatisation failed to achieve these two fundamental goals. For that matter, privatisation failed to meet its intended objectives of solving the woes of service provision in urban areas. A close examination of the current privatisation indicates that the operation has again failed to achieve its fundamental goals of decentralisation and economic viability. The failure of the current exercise in meeting the objectives of ridding the urban areas of water woes can therefore be predicted on this basis.

Purpose This study aims to evaluate the property tax base under the local government property taxation in Nairobi City and its implication on revenue adequacy of the city. Nairobi has grown both in population and in physical extent resulting to increased demand for urban services. The city faces challenges of adequate infrastructure service provision against increasing demand. Property taxation if fully exploited can be a major source of city government revenue, which has been dwindling. Design/methodology/approach Literature review of property tax bases in the world and examination of best practices was done to highlight the inadequacies of property tax base administration in Nairobi. Primary data were gathered through interviews of officers in Nairobi City involved in the land rating process. Secondary data were obtained through documentary search and field survey of the study area. Findings The study established that Nairobi relies on a dual system of taxation, namely, site value rating and area rating. Tax is on vacant land only and excludes improvements. There are many legal exemptions and administrative exclusions from the tax base. The property tax registers do not include all the taxable properties and there is no regular updating of the tax registers. Nairobi relies on an outdated valuation roll whose values have no relation to the current market values. Research limitations/implications These factors have resulted to a narrow tax base, which affects the revenue potential of the city and its ability to adequately provide infrastructure services. Originality/value This is an original research, which relied mainly on primary data. To establish the property tax bases and the exempt properties in Nairobi, the researchers interviewed the officers at the Nairobi city land valuation and property management directorate using structured questionnaires. To address the third objective on whether the property tax base is complete and all-inclusive, the research relied on primary data. The research population was residential properties in Buruburu, Kilimani and Riruta areas of Nairobi city. The sample data on property details were collected from the Ministry of Land and Physical Planning (MLPP). The researchers then examined the records at the Nairobi City to evaluate whether the properties, which are registered at the MLPP, are charged land rates at the city level and at what amounts. This included properties under site value rating and area rating.

Construction is a strategic industry in the developing economies like Kenya. In order for construction to ably perform this role, there is need to provide information on its various economic aspects including raw materials, products, processes, finance, and labour. Construction statistics of Kenya have been evaluated in order to ascertain their adequacy in terms of scope, portrait, reliability and responsiveness in their coverage of the construction industry. Official statistics published in the annual Statistical Abstract were reviewed according to these adequacy criteria. The findings are that: the scope of construction statistics is narrowly defined making the statistical portrait of the sector to be incomplete; the statistics are also unreliable in terms of quality and unresponsive to economical challenges of inflation, structural adjustment policies and the decline of public sector's role in the construction industry. A participatory statistical governance framework is recommended in order to improve the scope of statistics and alleviate the attendant problems like incomplete portrait that come with the narrow scope.

The world over, the role and eligibility of the state in the provision of water supply is increasingly coming into question. Policy makers and analysts are advocating the abdication of the state in favour of private participation. This is expected to bring with it a host of benefits to all the stakeholders concerned. Kenya is one of the developing countries that have endeavoured to privatize their water sectors. Kenya has done this by enactment and implementation of the Water Act of 2002. The paper carries out an analysis of the water institutions being created under the new legislation. This has been done against conventional policy and conceptual frameworks. Overall, the institutional set-up is found to be public sector-oriented rather than private sector-oriented. Recommendations are made for legislative review for mainstreaming private sector participation.