Kenya-Decrease in corporate tax rate rises developers’ needs to provide low cost housing

Low cost housing may be seen as the next frontier for investment in the Kenyan real estate sector. This was due to the implementation of a law that reduced the corporate tax rate by half for developers and investors; who aim to build at least 400 low cost homes. Even though the government is yet to identify what is meant by a low cost house, market players have defined it as a development that costs a maximum of Sh2 million to build, and ideally built of people who earn an income between Sh40 000 – Sh60 000. There is an increase in developers shifting their interests toward low cost housing projects as they seek to address the rising demand for affordable housing in the country. (Source: Construction Business Review)

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