Kenya
NYS

Ensure housing quality

If the draft Income Tax Bill is passed, those developing 100 units will pay 15 per cent tax on the resulting profits instead of the current 30 per cent. Such incentives are necessary if Kenya is to reduce the housing shortage in the country. Despite there being a housing construction boom in the country, it  has tended to benefit the upper end of the market with developers shunning the poor. The government is planning to build 500,000 new units in the next five years as it seeks to address the housing shortage problem.

A plan aimed at encouraging the construction of low-cost units by housing developers is a step in the right direction. The government is planning to offer them a lower corporate tax by slashing the minimum number of units required to to qualify for the tax cut to 100 from 400. If the draft Income Tax Bill is passed, those developing 100 units will pay 15 per cent tax on the resulting profits instead of the current 30 per cent. Such incentives are necessary if Kenya is to reduce the housing shortage in the country. Despite there being a housing construction boom in the country, it  has tended to benefit the upper end of the market with developers shunning the poor.The government is planning to build 500,000 new units in the next five years as it seeks to address the housing shortage problem. However, we must caution that the housing tax cuts must be transparent and should not be controlled by a few well connected contractors. The quality of construction must also be clearly stated to avoid instances where some contractors will claim tax cuts on shoddy buildings.

EDITORIAL: MPs should get to the bottom of NYS scandal

Once proper structures are in place the quest for affordable housing will be possible.

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