White Paradise: For 54 years the Killarney Golf Club paid only a mere R2 for rates & taxes to joburg

Breaking: For 54 Years, Killarney Country Club Paid Only R2 Per Year in Rates and Taxes to Johannesburg

JOHANNESBURG (August 1, 2025)
In a remarkable discovery, it has emerged that the esteemed Killarney Country Club (KCC) in Houghton has been paying just R2 per annum in rates and taxes to the City of Johannesburg for more than five decades. This nominal fee stems from a lease agreement struck in 1970 and extended in 1992 through to 2040.

The lease was established after the Johannesburg municipality expropriated the Club’s original land to construct the M1 Highway. In return, KCC was offered five nearby erven under a long-term lease of R2 each year. That extraordinary arrangement has remained unchanged ever since.

Council Takes Action: Public Participation and Renegotiation Underway

Responding to mounting public concern, the Johannesburg Property Company and city council have launched a public participation process to determine whether to renegotiate lease terms or sell or long-term lease the land. Under municipal asset regulations, any disposal or lease of assets with value exceeding R10 million requires public consultation. An independent valuation has confirmed that Killarney’s land value far exceeds that threshold.

MMC for Economic Development Nomoya Mnisi labeled the current R2-per-year rental as an “inheritance of apartheid.” Proponents argue the Council must rectify this historic underpayment, especially given that alternative developments such as housing or mixed-use public facilities could yield far greater value for residents.

Despite the low rent, club representatives maintain the arrangement has been mutually beneficial. KCC pays and assumes full responsibility for maintenance, security, groundskeeping, and improvements, which they say amount to millions annually. Club President Darryn Faulds argued that the land is largely a flood-prone wetland unsuitable for residential development, and that converting it to public parkland would impose heavy financial burdens on the city.

Club Responds: Benefits, Community Access, Breaking Even

From its establishment in 1903 as the Transvaal Automobile Club, rebranded in 2005, KCC has grown into a full-service country club with an 18-hole course, tennis, squash, bowling, a gym, and restaurants open to both members and public guests.

While critics decry the nominal rent as a subsidy for the elite few, the club responds that membership revenues go mostly back into upkeep and that it has not posted a profit in 15 years. It also contributes through advertising revenue passed to the city and has indirectly boosted the value of surrounding areas through maintenance of green space and facilities.

What Happens Next?

A council motion to consider renegotiation or sale was approved. As part of the process:

• An independent valuation will be completed

• Public input will be solicited

• A report to city council will be submitted within 60 days

• If the land is deemed non-essential to basic municipal services, a sale or lease renegotiation may proceed

Context and Significance

The lease rate of R2 per year, fixed since 1970 and reaffirmed in 1992, stands in stark contrast to current municipal rates. Council documents suggest even a modest rental of R1,000 per month for a small municipal property would be much more reasonable, making the existing deal strikingly outdated.

Given Johannesburg's soaring property values and the fiscal strain on municipal budgets, critics argue that renegotiating or selling the land could unlock funds for affordable housing, public infrastructure, or community sports facilities.

Summary Table

Stay tuned as public consultations get underway and a decision on the future of one of Johannesburg’s most prestigious but controversially subsidised sports facilities looms.