Kenya Govt lowers real estate tax by 10% to address housing deficit

The Kenyan government has lowered corporate tax for real estate developers to 20 per cent down from 30 per cent, a move that seeks to address the shortage of housing across the country.

Treasury Cabinet Secretary Henry Rotich stated that the government has further waived levies payable to the National Construction Authority (NCA) and National Environment Management Authority (NEMA), which would further lower the cost of constructing houses.

The move comes just after the recent release of statistics, which revealed that the country needs 250,000 housing units annually yet only 50,000 units are constructed, resulting in a shortage of 200,000 units every year.

The new tax incentives are projected to encourage real estate developers build more houses in a more friendly investment environment to meet the ever-rising housing demand, particularly in the low cost housing segment.