Real estate stakeholders have raised concern over the rising cost of construction, saying higher prices of building materials and fuel are driving up the cost of delivering affordable housing in Kenya.
The stakeholders and investors maintain that the government t should go slow on tax hikes so as to promote investments and enable Kenyans own properties and homes.
Most Kenyans according to the sector players are unable to raise resources to purchase land or homes due to a raft of taxes introduced by the government thereby increasing housing deficit in the country.
Speaking during the handover of more than 70 completed homes to their owners at Kenyatta Road in Kiambu County, Willstone Homes Managing Director Ejidio Kinyanjui urged the government to introduce tax cuts and subsidies for developers.
Kinyanjui said the increasing cost of key construction materials such as cement, coupled with higher transport costs resulting from rising fuel prices, has significantly increased the cost of building houses.
The MD quipped that increased taxation in the sector has undermined investments in the country which has in turn caused ripple effects in the economy.
He singled out the increment of stamp duty in municipalities close to urban areas from 2 percent to 4 percent which has seen prices of land and houses in the urban setups skyrocket thereby making it difficult for ordinary Kenyans to own homes.
“The government should be considerate of the current economic situation in the country before introducing more taxes that will scare away investors who are pivotal in turning around the country’s economy,” he said.
He noted that government support would enable private developers to play a bigger role in advancing the Affordable Housing Programme and help meet the growing demand for home ownership among Kenyans.
The MD also called on both the National and County Governments to focus on implementing infrastructure projects including roads, water and electricity installation even in remote parts of the country so as to open up regions for settlement and investments.
“Most Kenyans have bought property but they are yet to develop them or settle due to lack of requisite infrastructure. This is what the Government should focus on, to enable Kenyans to settle in their own homes. It will solve about 80 percent of the housing problems the country is facing,” he noted.
While noting that the real estate sector is the backbone of the country’s developments, Kinyanjui called on the government to come up with laws and policies that will create an enabling environment for the sector.
He quipped that the sector contributes significantly to the country’s economic basket as well as creating numerous job opportunities for Kenyans and especially the youth.
He added that easing the tax burden on the real estate sector would lower construction costs, making homes more affordable and encouraging greater private sector investment in housing projects.
The Association of real estate Stakeholders (RESA) who attended the ceremony also appealed to the government to involve industry players in the formulation of policies affecting the sector, saying consultation would lead to more practical and sustainable decisions.
They further called for peace and peaceful political campaigns, stressing that a stable and secure environment is critical in attracting investment and sustaining growth in the real estate industry.
Investors led by Phillip Kagichu echoed the sentiments saying that the government should create a conducive environment that’ll enable Kenyans in the country and abroad to invest in the country and contribute towards the nation’s economic growth.
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