18 July 2018

Kenya: Home Owners Get 15% Tax Relief After Kenyatta Signs Affordable Housing Scheme Law

Nairobi — President Uhuru Kenyatta today signed into law a Bill creating a 15 per cent tax relief for Kenyans buying houses under the Affordable Housing Scheme.

The President signed an amendment to the Income Tax Act to create a new section that establishes an Affordable Housing Relief set at 15 percent of the gross emoluments.

The tax relief is however not supposed to exceed Sh108,000 per annum as set out in the Act.

Affordable housing is one of the main pillars of the President's Big Four Agenda under which the Government intends to build 500,000 new houses by 2022.

The amendment to the Income Tax Act also includes the introduction of a compensation tax for power producers under a power producing agreement.

President Kenyatta also signed into law an amendment to the Stamp Duty Act to exempt first-time home buyers under the affordable housing scheme from Stamp Duty.

Amendments to the Stamp Duty Act also include provisions to allow the Collector of Stamp Duties to refer a valuation of property for the purpose of Stamp Duty to a registered and practising valuer. The amendment to the Stamp Duty Act is intended to fast-track valuations at the Ministry of Lands.

Further, President Kenyatta approved amendments to the Value Added Tax Act to effect zero rating of ordinary bread, copra, linseeds and mustard seeds.

Similarly, the VAT Act amendment zero rates inputs or raw materials for electric accumulators and separators. The aim of the amendment is to support the manufacturing pillar of the Big Four Agenda by making manufacturing of the items, especially batteries, cheaper.

Kenya

Sublime Soul Diva Who Demanded Respect, Which Will be Forever Given

It is no coincidence that two of Aretha Franklin’s celebrated contemporaries who travelled to Detroit to see the… Read more »

See What Everyone is Watching

Copyright © 2018 Capital FM. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.