Stakeholders in the private sector have urged the government to create an enabling environment for businesses to thrive and eventually spur the country’s economy.
They are also pleading with the Kenya Kwanza administration to go slow on taxes so as to promote investments in the country.
Some of the stakeholders in the Real Estate Sector aver that most of Kenyans are unable to raise resources to purchase land or homes due to a raft of taxes introduced by the State, thereby increasing housing deficit in the nation.
The stakeholders led by Top Care Properties Limited CEO Peter Gichuki maintain that a conducive business environment and a relaxed tax regime will enable more Kenyans upscale investments and own homes and properties.
Speaking at the sidelines of awards by Dependable Brands at Weston Hotel in Nairobi, Gichuki noted that the harsh economic times in the country has slowed down investments which has resulted to a ripple effect in the country’s economy.
The CEO quipped that many taxes, including taxation on construction materials and deductions from payslips have significantly reduced Kenyans’ purchasing power and dealt a huge blow to investments.
“This year we have witnessed a significant decline especially in investments on land properties and this has been occasioned by the hard economic times as well as increased taxation. We are however optimistic that the Government will make the requisite interventions to address this issue,” Gichuki said.
ALSO READ:
Similar sentiments were echoed by the firm’s Managing Director Amos Karuri who noted that increased taxation in the sector has undermined investments in the country.
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 play a pivotal role in turning around the country’s economy,” he said.
Karuri however hailed the recent progress in the sector due to government digitization efforts. The ongoing digital transformation of land registration and documentation processes has made it easier and safer for first-time buyers to invest, minimizing the risk of fraud.
“We commend the government for digitizing key components of the land sector. It has helped restore trust and opened up the market to more potential investors. However, our call to the government is to complete the overhaul by digitizing land control boards and related institutions. This way, both buyers and sellers will benefit from a transparent, efficient system,” the MD said.
Next Level Properties CEO John Thiong’o told journalists that the real estate sector is the backbone of the country’s developments and urged the government to come up with laws and policies that will create an enabling environment for the sector to grow.
He quipped that the sector contributes immensely to the country’s economic basket besides creating numerous job opportunities for Kenyans and especially the youth.
ALSO READ:
Obonyo: Coffee Co-operative societies with production of below 500,000kg to merge with stronger ones
Similar sentiments were echoed by Homelink Mabati CEO Catherine Kathure who called on the government to reduce excise duty for importers and especially the key players in the ongoing affordable housing programme.
“We are ready to partner with the Government and contribute significantly to the successful implementation of affordable housing programme as players in the construction industry so that all Kenyans can get access to decent and affordable housing,” Kathure said.
Meanwhile, Karuri 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.
“It is important to conduct background checks and do thorough investigations before investing your hard earned money. Innocent Kenyans have lost their money to corrupt individuals and companies,” the MD said.
He noted with concern that many Kenyans have lost billions of shillings to unscrupulous individuals and land buying firms in fake land deals. “To the land buying and selling companies, make sure that land you buy to resell does not have disputes. Again, uphold high levels of integrity in the business so as not to lose trust with investors,” Karuri said.
By John Kamau
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
