Kidero opposes 0.5pc construction levy

June 30, 2014 1:27 pm
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In a letter addressed to Lands Cabinet Secretary Charity Ngilu, Kidero states that the regulations were prepared without consultation with county governments/FILE
In a letter addressed to Lands Cabinet Secretary Charity Ngilu, Kidero states that the regulations were prepared without consultation with county governments/FILE
NAIROBI, Kenya, Jun 30 – Nairobi Governor Evans Kidero has opposed the move by the national government to impose a 0.5 percent levy on construction.

In a letter addressed to Lands Cabinet Secretary Charity Ngilu, Kidero states that the regulations were prepared without consultation with county governments.

He pointed out that the levy is bound to impact heavily on housing as well as push the cost of providing urban technical services, which will in turn negatively impact the ability of the county government to expand infrastructure services.

“This levy affects the housing sector that falls within the jurisdiction of the county governments and it should have been prepared with our participation and concurrence,” he stated.

The governor noted that the Nairobi City County government and other counties are currently experiencing serious housing deficits and inadequacy of infrastructure and this would go against the State’s obligation to provide citizens with adequate and affordable housing.

“There are already numerous levies and charges imposed on the housing and construction sectors and this latest move will only serve to discourage investment in the sector,” he said.

He indicated that the levy would also impact negatively projects City Hall is currently engaged in.

“Nairobi City County Government has been trying to engage various potential developers with a view to interesting them in investing in large scale housing and other infrastructure projects in the county including “Eastlands Urban Renewal project” and this latest project will definitely scare them away” he said.

The governor urged the national government to revoke the imposition of the construction levy as contained in the National Construction Authority Act, 2014(Legal notice no 74) as it would adversely affect investor enthusiasm and deny Nairobi Residents the right to adequate and affordable housing and infrastructure.

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