Nairobi — Stakeholders in the real estate sector have reinforced the calls for President William Ruto to halt signing the Finance Bill into law calling for dialogue on the matter.
The realtors criticized the bill as oppressive and endorsed calls for its rejection saying it will result in economic turmoil.
Under the umbrella of Association of Real Estate Stakeholders (RESA), the entrepreneurs in the land sector
led by the association chairman Kinyua Wa Iratu, the land buyers and sellers decried that the bill introduces increased property and capital gain taxes which could raise the cost of real estate transactions thereby slowing down property sales and reducing investment in the sector.
Players in the sector have also called on the National Assembly to drop the proposed Land Laws (Amendment) (No. 2) Bill 2023 that seeks to tax freehold land in urban regions.
They termed the bill, which was introduced in Parliament by the National Assembly Majority Leader Kimani Ichung'wa, as punitive, noting that the levy equates to the rent charged on comparable leasehold properties.
While maintaining that the Bill is punitive and inequitable, the players insisted that the proposed law will introduce taxes and or levies to freehold land owners which will further impoverish the already burdened Kenyans.
The Bill, they said, allows the government to revalue lands before taxing them according to current rates adding that if one fails to pay, the land will be auctioned by the government.
According to them, freehold titles represent the pinnacle of land ownership, conferring perpetual rights to the property owner adding that it was introduced post-independence to rectify the injustices of the colonial land tenure system.
Thuku observed that the financial strain imposed by the proposed annual levies will result in small land owners losing their properties, culminating in a concentration of land ownership among a few affluent individuals or entities.
His sentiments were echoed by Kigathi Kionywe from Hotstep Holdings Ltd who said the Bill jeopardizes the security and principle that land acquired through struggle and sacrifice should remain in the hands of Kenyans.
