Investors have urged the government to lower taxation rates for them to focus on lower end residential developments.
Speaking at the East Africa Property Investment Summit, a number of real estate and banking companies suggested that lowering construction levies to the National Construction Authority and taxation on construction materials would help them focus on lower end residential properties.
Dan Karua, the Managing Director of online real estate marketplace Lamudi, said current players in the real estate market should lobby the government through associations such as KPDA to address the high cost of construction.
“Through associations like Kenya Property Developers Association, it is on real estate companies to push for a look into regulations on levies to governing bodies such as the National Construction Authority, as well as high taxation on construction materials such as the 25% taxation on imported steel,” said Karua.
Karua added that the government should partner with corporations in other jurisdictions that have successfully frontiered alternative construction materials such as South Africa’s Moladi.
Karibu Homes Managing Director Ravi Kohli said the industry has seen some positive moves in Kenya through construction technology like International Green Structures (IGS), Appropriate building materials (ABMT) and Expanded Polystyrene (EPS) in Mlolongo, Athi River & Kajiado.
Others who spoke during the session interrogating housing in East Africa include Coldwell Banker Kenya Managing Director Danielle Callaway and Fred Msemwa, the CEO of Watumishi Housing Company.
The Event took place at Radisson Blu hotel along Elgon Road at Upperhill Nairobi
