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City Hall seizes five buildings to recover debt

The county government has taken over five buildings within the city centre as it seeks to recover money owed by rate defaulters.

City Hall is targeting Sh200 million from 150 properties in the next one month in its efforts to recover a Sh12 billion debt.

City Printing Works, Leo Investment Limited, P&L Investment Limited and Princely House Limited, which own premises on Moi Avenue, and Brighton Investment Limited on Tom Mboya Street became the first casualties of the county’s operation.

TENANTS TO PAY CITY HALL

Tenants occupying the buildings will now pay rent to City Hall until the county recovers its money.

The county will impose a 3 per cent interest on the outstanding amounts.

County Executive member for Finance Gregory Mwakanongo told journalists on Monday that they had given building owners enough time to clear their debts.

“Last year, we gave property owners up to 90 per cent waivers on their accrued interest and we collected Sh780 million,” he said.

Mr Mwakanongo said those who failed to pay even after the waivers were granted are the ones they are targeting.

EXTEND CRACKDOWN

Another crackdown is set to be conducted on Thursday morning.

The operation will be extended to the outskirts of the city from January next year.

This comes as a report  for the first quarter of 2014 cast doubt on whether the county will meet its revenue estimates.

City Hall collected Sh158 million between July and September against a targeted Sh3.7 billion for the whole financial year.