New housing levy kenya
The New Housing Levy in Kenya!
In 2020, the Kenyan government introduced a new housing levy, also known as the Affordable Housing Levy, to address the country's housing shortage and promote affordable housing. Here's a summary of the levy:
What is the New Housing Levy?
The New Housing Levy is a 1.5% tax on the sale of immovable property, including land, buildings, and structures. The levy is aimed at generating revenue to fund the development of affordable housing projects in Kenya.
Who is affected by the levy?
The levy applies to all individuals, companies, and organizations that sell immovable property in Kenya. This includes:
- Property developers
- Real estate agents
- Individuals selling their own properties
- Companies selling properties as part of their business operations
How is the levy calculated?
The levy is calculated as 1.5% of the sale price of the immovable property. For example, if a property is sold for KES 10 million, the levy would be KES 150,000 (1.5% of KES 10 million).
What is the purpose of the levy?
The revenue generated from the levy will be used to fund the development of affordable housing projects in Kenya. The funds will be channeled through the Affordable Housing Fund, which will be managed by the National Housing Corporation (NHC).
Benefits of the levy
The New Housing Levy is expected to:
- Increase the supply of affordable housing in Kenya
- Reduce the housing deficit in the country
- Provide affordable housing options for low- and middle-income households
- Stimulate economic growth by creating jobs and increasing economic activity in the construction sector
Implementation and compliance
The New Housing Levy is implemented by the Kenya Revenue Authority (KRA), which is responsible for collecting the levy. Property developers and sellers are required to pay the levy when they sell immovable property in Kenya. Failure to comply with the levy may result in penalties and fines.
Overall, the New Housing Levy is a significant step towards addressing Kenya's housing shortage and promoting affordable housing. It is expected to have a positive impact on the country's economy and society as a whole.