New Jersey — Lands, Public Works, Housing and Urban Development Cabinet Secretary Zachariah Njeru is in the US to attend the World Bank-organized Global Affordable Housing Conference and to also woo Kenyans in the diaspora to invest in the Affordable Housing Programme.
Shortly after arriving in the US on Saturday, the CS delivered a keynote address at an Expo held in New Jersey aimed at attracting the Kenyan diaspora to invest in the Affordable Housing Programme.
In his address at the Jambo List Expo, CS Njeru encouraged Kenyans living in the United States to invest in the massive construction opportunities in Kenya as the Government moves ahead to build 200,000 affordable housing units annually for the next five years.
The CS,who is accompanied by Housing and Urban Development Principal Secretary Charles Hinga, said the Government has availed several incentives for those investing as developers in the programne as well as those who buy houses through the initiative.
The CS said the Government is committed to safeguarding the property and investment of all investors whether they reside in Kenya or outside the country.
"The Government, through the Ministry of Lands, has undertaken many procedures to promote the safety and security of Kenyan's investment in real estate," said the CS.
The Cabinet Secretary said that the Government has put in place several tax incentives to benefit both the investors as well as the buyers of the houses.
Mr Njeru said the incentives include a mortgage relief on interest paid on a mortgage up to a maximum of Shs 300,000 per year, as well as a tax relief of up to Shs108,000 per year when saving for a home.
Another incentive is the waiver of stamp duty for first-time owners under the AHP.
For developers, the CS noted, the Affordable Housing Programme has a raft of tax benefits: VAT on construction inputs will only be 16 percent, leading to a reduction in construction costs of up to 9 percent.
Corporate tax for developers building more than 100 houses will be limited to 15 percent and this is designed to contribute to the low prices of the houses.
The Railway Development Levy for developers will be maintained at 1.5 percent, and there will be a restriction of interest expense deduction when computing taxable income where a foreign-controlled company has a debt-to-equity ratio exceeding 3:1, the CS said.
Mr Njeru said the Government appreciates the huge demand for safe, reliable investment opportunities for the diaspora community, especially in the docket under the Ministry.
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He said besides the incentives he cited, the Government has created an online platform, Boma Yangu, which makes it easy to register and purchase AHP houses.
The CS encouraged the Kenyans in the US to use the Boma Yangu platform to purchase affordable houses for themselves and their families back in Kenya.
Diaspora remittances have been the largest source of foreign exchange to Kenya.
According to Central Bank of Kenya statistics, diaspora remittances increased to Sh532.3 billion between March 2022-March 2023 up from Sh518 billion between March 2021- March 2022.
CS Njeru said the Government is conscious of the fact that the Kenyan diaspora has always had a keen interest in land and housing investments.
"There is a huge opportunity for us to partner with you and tap into your expertise and resources to grow this sector," said CS Njeru.
CS Njeru has assured all Kenyans who contribute money to the programme that they will never be exposed to any risks.
