Friendly taxes promote investments, government told

A section of the new homes in Juja, Kiambu County. HANDOUT

Real Estate sector stakeholders and investors have urged the government to go slow on taxes so as to promote investments in the country and enable Kenyans to own properties and homes.

Most Kenyans, according to the sector players, are unable to raise resources to purchase land or homes due to several economic factors, among them a raft of taxes in place.

Willstone Homes Ltd Managing Director Ejidio Kinyanjui said that the many taxes, including taxation on construction materials and deductions from pay slips have significantly reduced Kenyans' purchasing power and dealt a huge blow to investments.

He spoke during the official handover of over 100 homes to investors at the firm's Batian, Windsor Annex 2 and Windsor Annex Court B Estates in Juja, Kiambu County on Saturday.

Kinyanjui said an increase in taxation in the sector undermines investments in the country which has in turn causes ripple effects in the economy.

He singled out the recent increment of stamp duty in municipalities close to urban areas from 2 percent to 4 percent saying it 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.

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 reiterated that the Real Estate Sector played a pivotal role to the increment of diaspora remittance in the first nine months this year noting that most Kenyans working and living abroad have embraced investments in the sector.

The remittance increased by 17.2 percent to 3.639 Billion USD from 3.106 billion USD for a similar period last year.

Investors led by Phillip Kagichu and Angelina Phaltang 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.

Kagichu, a medic working in the US, bought a home for his mother who has been living under poor conditions in one of the informal settlements in Nairobi.

He at the same time called on Kenyans planning to invest in land or homes to do proper due diligence before investing their hard earned money to avoid falling prey to criminals purporting to sell land.

Kagichu averred that Kenyans have lost billions of shillings to unscrupulous individuals and land buying firms in fake land deals, adding that he was once a victim of the culprits.

"It is important to conduct background searches and do thorough investigations before investing your hard earned money. Innocent people, and especially those working abroad, have lost their money to corrupt firms," he said.

He urged Kenyans not to be in a hurry but take time conducting searches, companies' profiles and track records before investing their resources