Get the latest construction industry insights and platform updates delivered to your inbox.
© 2026 Consnect. All rights reserved.
The City of Kigali has implemented a new land tax structure for 2026, replacing rates that stood for nearly a decade. With the top tier reaching 80 Rwf per square meter in premium business zones, construction companies and real estate developers must now recalibrate their project feasibility studies and operational budgets to align with these updated fiscal regulations.
Redempta
27 days ago
After seven years of stable land tax rates, the City of Kigali has officially enforced a new tariff structure effective from January 2026. This change follows a Kigali City Council decision from February 2025, rooted in the Ministerial Order of November 2023.
For the construction and development sector, this update is a critical factor in land acquisition, site development, and long-term property management.
The new tax system is categorized by the land’s location and intended use. Understanding these tiers is essential for construction firms planning their next project:
These are the highest-value areas for developers.
Commercial & Industrial: Rwf 70 – Rwf 80 per sqm.
Residential within CBD: Rwf 60 – Rwf 80 per sqm.
For projects located just outside the primary CBD:
Non-Residential (Business/Industrial): Rwf 50 – Rwf 70 per sqm.
Residential: Rwf 40 – Rwf 60 per sqm.
Ideal for affordable housing and small-scale commercial hubs:
Non-Residential: Rwf 20 – Rwf 50 per sqm.
Residential: Rwf 10 – Rwf 40 per sqm.
Agricultural/Livestock: 0 – 0.4 Rwf per sqm.
For construction companies, these new rates represent more than just a cost increase; they signal a shift toward higher-density development and optimized land use.
Expert Insight: With land tax in the CBD now capped at the maximum allowed by law (80 Rwf/sqm), the pressure is on for developers to ensure their projects generate high returns per square meter. This is expected to drive a surge in vertical construction and mixed-use high-rise developments.
As a construction firm or property developer, staying updated on these changes is vital for your "Compliance & Documentation" profile on the Connsect platform.
Project Budgeting: Ensure your 2026 bids and proposals reflect the current tax rates to avoid under-budgeting.
Due Diligence: When seeking partners or investors on Connsect.rw, having a clear understanding of the tax liabilities on your proposed site builds trust and professional credibility.
The City of Kigali emphasizes that these rates were established to reflect the current value of infrastructure provided in these zones, ensuring that the city’s growth remains sustainable.
source : igihe.com
Sign in to share your thoughts and engage with the community