State gives tax relief to boost home ownership

Business Daily Kenya: 

Taxation. Photo/Courtesy

Housing co-operatives are set to enjoy tax relief inside the current financial year to enable them to improve supply of units mainly to middle- in addition to lower-income areas. President Uhuru Kenyatta said the government has extended to the co-operatives mortgage tax relief in addition to real estate development corporate tax.

The fresh tax measures, he said, are designed to influence in addition to encourage further growth in addition to development of the housing sector. He observed of which housing co-operatives have contributed to provision of affordable in addition to decent housing especially for the middle- in addition to lower-income segments of the population.

“In order to further encourage the growth in addition to development of the housing sector through co-operatives, my government has, through the Miscellaneous Amendment Bill 2017, granted various privileges to the housing sub-sector,” said President Uhuru.

He made the remarks in a speech read on his behalf by Industry, Trade in addition to Co-operatives Cabinet Secretary Adan Mohamed during the National Ushirika Day Celebrations at Uhuru Park.

The President observed of which savings in addition to credit co-operatives (Saccos) have mobilised savings to the tune of Sh600 billion with an asset base in excess of Sh800 billion. He said the saving mobilisation design has helped financial deepening right down to the hitherto unbanked segments of the population.

Uhuru said members who borrow via saccos will currently enjoy mortgage tax relief as is usually the case in additional mortgage institutions such as banks in addition to building societies.

“Threshold for real estate development entitlement for the 15 per cent corporate relief has been lowered via 400 units to 100 units so as to enable co-operatives to benefit via the fresh measure,” he added.

According to Vision 2030, the local housing sector is usually characterised by inadequate affordable in addition to decent housing, low- level of urban home ownership in addition to extensive in addition to inappropriate dwellings including slums in addition to squatter settlements.

of which is usually estimated of which out of total 150,000 housing units required annually in urban areas, only an estimated 35,000 are produced. inside the rural areas of which is usually estimated of which there is usually a need to improve the quality of over 300,000 housing units every year.

of which is usually attributed to low investment in low- in addition to middle-cost housing by both public in addition to private sectors. Uhuru said most societies under the umbrella of National Housing Co-operative Union are involved in provision of affordable houses to the middle in addition to lower income earners across the country.

Within the central business district in addition to additional major urban centres, cooperatives own substantial commercial buildings while inside the estates the sector is usually taking lead in residential housing provision.

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State gives tax relief to boost home ownership

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