Nairobi County Introduces Mandatory Building Fees and New Zoning Rules Under 2026 Policy
Nairobi Landlords Face Fresh Costs as County Unveils Sweeping Building Fees, New Zoning Rules and Tough Green Requirements
Thousands of landlords, developers and property owners in Nairobi could soon face higher construction costs and stricter planning obligations after the Nairobi City County Government unveiled sweeping reforms under its proposed Development Control Policy 2026.
The policy, which seeks to overhaul how buildings are planned, approved and regulated across the capital, introduces a raft of new requirements, including a mandatory Development Impact Fee (DIF), revised zoning regulations, stricter environmental standards and a fully digitised building approval system.
County officials say the reforms are aimed at ensuring rapid urban growth is matched with investment in roads, drainage systems, public utilities and other critical infrastructure. However, the proposals are expected to increase the financial burden on developers before construction projects can commence.
Mandatory Development Fee Before Construction Approval
At the centre of the proposed reforms is a compulsory one-time Development Impact Fee (DIF) that every developer must pay before obtaining a building permit.
According to the policy document, payment of the fee will no longer be optional.
“A mandatory, one-time Development Impact Fee (DIF) is applied at the building permit stage. Payment of the full DIF is a mandatory precondition for the issuance of a Building Permit,” the policy states.
The county further proposes that developers must fully settle the fee before they can obtain an occupation certificate for completed buildings.
The Development Impact Fee will be calculated using three key factors:
- Gross Floor Area of the development
- Building Use Class Factor
- Location Factor
The formula proposed by the county is:
DIF = Gross Floor Area × Use Class Factor × Location Factor
Under the framework, commercial developments are expected to attract significantly higher charges than affordable housing projects, while developments located in areas requiring extensive infrastructure investment will pay even more through the location-based multiplier.
County Explains Purpose of New Charges
Nairobi County says revenue generated from the new levy will be channelled into the proposed Nairobi Urban Infrastructure Reinvestment Fund (NUIRF).
The fund is expected to finance roads, drainage systems, sewer lines, public amenities and other infrastructure required to support the city’s expanding population.
Officials argue that developers whose projects increase demand for public infrastructure should contribute towards financing those improvements rather than leaving the entire burden to taxpayers.
Major Changes to Zoning Rules
Beyond the new fees, the county is also proposing one of the biggest overhauls of Nairobi’s zoning regulations in decades.
The number of development control zones will be reduced from 20 to 15, creating a new planning framework that will determine:
- What types of buildings can be constructed;
- Maximum building heights;
- Land-use categories;
- Density requirements; and
- Development standards within each zone.
The changes are expected to influence future residential, commercial and mixed-use developments across the capital.
Digital Approval System to Replace Paper Processes
The reforms also seek to modernise Nairobi’s development approval process by introducing an electronic permitting platform.
The proposed digital system will enable applicants to submit building plans online, monitor application progress in real time and reduce approval delays that have long frustrated developers.
To strengthen oversight, the county also plans to establish an Urban Planning Technical Committee comprising planners, architects, engineers and surveyors to review complex development applications before approvals are granted.
Tougher Environmental Rules for Developers
Developers of large projects will also be required to meet stricter sustainability standards under the proposed policy.
Among the new requirements are:
- Solar-ready rooftops;
- Electric vehicle charging infrastructure;
- Rainwater harvesting systems;
- Waste segregation facilities; and
- Contributions towards public infrastructure or community facilities.
High-rise developments will additionally be required to provide separate waste collection facilities for recyclable and general household waste.
One of Nairobi’s Biggest Planning Reforms
If adopted, the Development Control Policy 2026 would represent one of Nairobi’s most significant urban planning reforms in recent years.
The proposals would fundamentally reshape how buildings are approved, financed and regulated while introducing additional compliance costs for developers in exchange for improved infrastructure and more sustainable urban growth.
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