Kenya is considering putting in place tax incentives that will spur the real estate sector to boost the supply of affordable houses, an official said on Tuesday.
“We plan to put together an aggressive tax package in the finance bill later this year that will incentivize the construction of low-cost houses,” Charles Hinga, principal secretary in the Ministry of Transport, Infrastructure Housing, Urban Development and Public Works, told a housing conference in Nairobi.
Most of the houses built in Kenya are targeted at middle- and high-income segment of the population, Hinga said.
Under an affordable housing program (AHP), the east African nation plans to build 500,000 low-cost houses by 2022.
Hinga said the government will use private-sector funding to facilitate provision of affordable homes to Kenyans.
In its Budget Policy Statement presented to parliament last month, the national treasury allocated about 11 billion shillings (110 million U.S. dollars) to the AHP. Enditem