Nairobi set to unlock billions through new law targeting unauthorised developments

Nairobi Governor Sakaja Johnson, accompanied by Paris mayor Anne Hidalgo/FILE

A new law targeting irregular buildings and informal settlements in Nairobi is expected to unlock over Sh5 billion in revenue, forming part of an ambitious plan by City Hall to raise Sh20.9 billion in the 2025-26 financial year without introducing new taxes. 

The implementation of the Nairobi City County Regularisation of Unauthorised Developments Act, 2025, marks a pivotal moment in the city’s quest for structured urban planning, financial sustainability, and formalisation of thousands of properties that were previously unregulated.

The law is part of the aggressive push by City Hall to have land owners pay up their rates to fund the current financial year's budget without raising taxes. 

Signed into law earlier this year, the act allows developers and property owners to seek retrospective approval for buildings that were erected without necessary permits or that deviated from approved plans—for example, adding extra floors without clearance. These approvals, however, are not automatic.

Applicants must undergo technical compliance checks, pay penalties, and submit documentation prepared by licensed professionals.

Patrick Analo, Nairobi’s chief officer for urban planning, said the process could potentially affect close to two million residents living in informal or irregularly developed areas. 

“Our focus is on areas like Embakasi East, West, North and South, Ruai, Kasarani, Mwiki, and Roysambu,” Analo said during a presentation to the Nairobi county assembly planning committee. 

“These are neighbourhoods that originated through land-buying companies or squatter settlements on public land, many of which have been in and out of court.”

One of the landmark cases he referenced involves the late businessman Gerishon Kirima, whose family won a protracted legal battle over contested land.

The court gave the family the option to evict settlers or pursue a buyout. Eventually, both parties agreed to a buyout arrangement, setting the stage for regularisation.

Analo stressed that the initiative is not purely a revenue-raising tactic but a tool for economic empowerment. 

Once properties are regularised, residents will be able to access formal financial services, including credit and mortgages, using the new documentation as proof of ownership and compliance. 

“Banks usually ask whether the property was approved and where it is located. Having proper documents gives residents financial leverage and security,” he said.

The county is also moving to regularise titles issued during Governor Johnson Sakaja’s recent distribution of 7,000 deeds. 

Analo cautioned that title ownership alone does not permit development. 

“Under the Physical Planning Act, anyone with a title deed must still obtain construction approvals. This process cannot be bypassed,” he said.

Crucially, land under active legal dispute remains ineligible for approval under the Act until all issues are resolved in court. 

The law also provides for the formation of a Regularisation Advisory Committee, consisting of professionals from planning, engineering, surveying, architecture, public health, and environmental departments. 

The committee is responsible for evaluating applications and recommending approvals, rejections, or deferrals based on technical and legal criteria.

Meanwhile, the county has been under pressure from professionals and residents to clean up its planning systems.

 The Institution of Engineers of Kenya recently decried widespread delays and corruption in building approvals. 

“There are officers who extort architects just to move files. We will name them,” said IEK president Shammah Kiteme, vowing to expose cartels in City Hall.

The new law also follows a series of high-profile crackdowns. In early 2025, the Environment and Land Court invalidated approvals for buildings exceeding height restrictions in areas like Kileleshwa and Rhapta Road, citing safety and zoning violations. 

Separately, the National Environment Management Authority has intensified its enforcement of environmental regulations, including arresting developers who ignored stop orders for illegal projects.

On the streets, Nairobians have expressed both support and skepticism. Many welcome the chance to legitimise long-held properties, while others fear bureaucratic hurdles or exploitative fees.

 “We want order, but not another cash cow for corrupt officials,” said one resident in Mwiki.

Still, with Governor Sakaja’s administration under pressure to meet budget targets without overburdening taxpayers, the Regularisation Act represents a delicate balancing act: formalise, regulate, and monetisewithout fuelling further dysfunction.