The City of Kigali has explained that newly adjusted rates of land tax payable per square metre were approved by the City Council in February 2025. The explanation followed recent complaints from taxpayers who noted a drastic increase in land tax, rising to a maximum of Rwf80 per square metre in most parts of the city that previously paid less than this amount. ALSO READ: City of Kigali explains newly adjusted land tax In this article, The New Times looks at what is based on increasing land tax. Criteria and range of land tax rates The standard rates of land tax range between Rwf0 and Rwf80 per square metre, according to the 2023 ministerial order by the Ministry of Finance and Economic Planning. Criteria applied to set the tax rate per square metre of the surface of land are the class of the city where the taxable plot of land is located, the level of development where the taxable land is located, and the intended use of the taxable land. ALSO READ: Govt mulls changes to land, corporate tax rates For the City of Kigali to adjust land taxes, the city council had several specific considerations. These considerations included the category or class and location of the area in which the taxable land is located, the level of development of the area, the designated use of the land (zoning), the harmonisation of tax rates previously approved by the District Councils of the City of Kigali based on areas with similar characteristics across different districts, as well as approved physical plans. Central Business Development (CBD) level Central Business Development (CBD) is among the levels of development where the taxable land is located that are used as a basis to set land tax. “CBD” means a Central Business Development area in the City of Kigali and in some district satellite or secondary cities, as explained by the ministerial order. In the City of Kigali, the CBD comprises commercial areas in which landowners have to pay between Rwf70 and Rwf80 per square metre, residential areas that pay between Rwf60 and Rwf80, industrial areas that pay between Rwf70 and Rwf80, and open spaces that pay between Rwf70 and Rwf80 per square metre. ALSO READ: Why some plots of land in Kigali will be exempt from tax CBDs in satellite and secondary cities comprise commercial areas that pay between Rwf40 and Rwf70 per square metre, residential areas that pay between Rwf30 and Rwf60, industrial areas that pay between Rwf40 and Rwf70, and open spaces that pay between Rwf40 and Rwf70 per square metre. Open space means an area reserved for tourism or recreational activities of various kinds, including hotel construction sites, scenic spots, and sports fields. Sub-urban centre level Sub-urban centre means a decentralised mixed-use nodal point within the City of Kigali, the satellite or secondary cities, and rural district towns, serving as a socio-economic hub. Landowners in sub-urban centres of the City of Kigali must pay between Rwf40 and Rwf60 in residential areas, Rwf50 and Rwf70 in commercial areas, between Rwf0 and Rwf0.4 in agriculture and livestock areas, and Rwf50 and Rwf70 in open space and industrial areas. ALSO READ: Land cost soars in secondary cities Landowners in sub-urban centres of satellite and secondary cities must pay between Rwf10 and Rwf30 in residential areas, Rwf20 and Rwf40 in commercial areas, between Rwf0 and Rwf0.4 in agriculture and livestock areas, and Rwf20 and Rwf40 in open space and industrial areas. Trading, peri-urban areas and neighbourhood centres Peri-urban area means a landscape interface between town and countryside, or a rural–urban transition zone where urban and rural mixed uses occur. Neighbourhood centre means an individual urban area within urban boundaries that provides work and services and offers economic opportunities to a maximum of 5,000 urban dwellers. Trading centre means a place determined by a decentralised entity where micro-enterprises and small businesses are carried out. ALSO READ: Govt makes U-turn on property tax In the City of Kigali, these areas comprise residential areas that pay between Rwf10 and Rwf40 per square metre, agriculture and livestock areas that pay between Rwf0 and Rwf0.4, as well as commercial areas, open spaces and industrial areas that pay between Rwf20 and Rwf50 per square metre. In satellite and secondary cities, residential area landowners pay between Rwf10 and Rwf50 per square metre, agriculture and livestock areas pay between Rwf0 and Rwf0.4, and commercial areas, open spaces and industrial areas pay between Rwf10 and Rwf20 per square metre. Rural area level of development in satellite and secondary cities Residential areas, agriculture and livestock areas, and open spaces in satellite and secondary cities pay between Rwf0 and Rwf5, between Rwf0 and Rwf0.4, and between Rwf5 and Rwf10 per square metre, respectively. Elsewhere in the country Elsewhere in the country, trading centres, peri-urban areas and neighbourhood centres are also considered. In these centres, agriculture and livestock areas, residential areas, commercial and industrial areas, as well as open spaces, pay between Rwf0 and Rwf0.4, between Rwf5 and Rwf20, between Rwf10 and Rwf20, and between Rwf10 and Rwf20 per square metre, respectively. In rural parts elsewhere, commercial or industrial areas, residential areas, agriculture and livestock areas, and open spaces pay between Rwf5 and Rwf10, between Rwf0 and Rwf5, between Rwf0 and Rwf0.4, and between Rwf5 and Rwf10 per square metre, respectively.
