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The Standard

Real estate stakeholders call for reforms to boost sector

By Sofia Ali | 5mos ago
AMCCO Properties Limited during 4th anniversary celebrations. [Courtesy]

Construction industry stakeholders are calling for policy reforms to address issues that are hindering the sector’s growth, including double taxation and the lack of a cohesive regulatory body.

They say policy inconsistency complicates the investment climate, deterring potential investors and hindering growth.

“There needs to be a solid regulatory framework that enforces fair practices across the board,” said Amcco Properties managing director James Muturi during an entrepreneurs forum in Nairobi last week.

He warned that without such measures, stakeholders may become alienated, ultimately undermining the market’s potential.

The forum was jointly hosted with Kenya National Chamber of Commerce and Industry (KNCCI).

Muturi highlighted the burden of double taxation where property owners are required to pay taxes to both national and county governments for the same property.

Financing remains another significant barrier. Despite a strong desire among Kenyans to own homes, access to mortgages is limited.

“How many banks are willing to finance construction or plot purchases?” Muturi posed, stressing the necessity for more accessible financing options. “Mortgages should be as accessible as car loans.”

Simon Nyaga, chairman of the KNCCI Diaspora Committee, emphasised the importance of building partnerships with potential investors in the diaspora.

He said by establishing strong connections, developers can tap into a wealth of resources and a genuine interest in contributing to Kenya’s growth.

“Understanding the unique needs of the diaspora community is essential for creating opportunities that resonate with their vision for their homeland,” he said.

Research by Statista projects that the Kenyan real estate market will reach a value of Sh697.80 billion in 2024. 

Related Topics

KNCCI AMCCO Properties Limited Real Estate Construction Industry
.

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