City of Kigali Explains Adjusted Land Tax Rates

The City of Kigali has explained the recent adjustment of land tax rates payable per square metre. The city council approved the new rates in February 2025.

The explanation follows concerns from residents who reported sharp increases in land tax. In many areas, the rate rose to a maximum of Rwf80 per square metre. Previously, most landowners paid lower amounts.

City Says Rates Replaced Old Framework

According to the city, the new rates replaced those approved by district councils in 2017 and 2018. Authorities continued applying those older rates until the end of 2024.

In a statement issued on Monday, January 5, the city said it shared the approved rates through its official website. In addition, local leaders explained the changes during weekly community meetings held every Tuesday.

Furthermore, the city said it will continue to inform residents about land tax obligations. It also urged taxpayers to pay accurately and on time.

How Much Landowners Are Required to Pay

A list of council resolutions from February 2025 shows that many plots now attract a tax of Rwf80 per square metre. However, in other areas, landowners must pay Rwf30 or Rwf40 per square metre.

Areas classified as rural pay the same land tax rates as agricultural land.

The city based the adjustments on a 2023 ministerial order. That order set the allowable land tax range between Rwf0 and Rwf80 per square metre.

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Rates Vary by Area and Land Use

In Kigali’s Central Business District, land used for commercial, industrial and open-space purposes attracts Rwf70 to Rwf80 per square metre. Meanwhile, residential land in the same area attracts Rwf60 to Rwf80.

In suburban centres, residential land attracts Rwf40 to Rwf60 per square metre. Commercial and industrial land attracts Rwf50 to Rwf70.

For land used for agriculture and livestock farming in suburban centres, the tax ranges from Rwf0 to Rwf0.4 per square metre.

In trading centres, peri-urban areas and neighbourhood centres, residential land attracts Rwf10 to Rwf40 per square metre. Commercial and industrial land attracts Rwf20 to Rwf50.

Why the City Adjusted the Rates

The city council said it reviewed the land tax rates as part of its February 2025 agenda. During the discussions, councillors considered several factors.

These included land location, zoning, development level and designated land use. The council also aimed to harmonise rates across districts with similar characteristics. Approved physical development plans also guided the decision.

For example, landowners in Karembure, Kicukiro, paid Rwf10 per square metre in 2024. However, due to rapid development, the rate now stands at Rwf80 per square metre.

Forest and Public Land Also Taxable

The council further decided that forest land and land reserved for public facilities are taxable. These include land used for public utilities, administration, transport, economic activities, science, social services and tourism.

Forest land attracts the same tax as agricultural land. Meanwhile, land used for public facilities attracts the same tax as commercial land.

In addition, the city council approved updated classifications of urban and rural villages. Authorities will use these classifications to calculate trading licence taxes for 2025.