Give Developers Incentives to build more affordable housing

The Kenya Kwanza government promised to give developers incentives to build more affordable housing.

In July 2023, an array of tax incentives were given to individuals and developers to encourage home ownership. A lump sum paid out of a registered home ownership savings plan that is used for the purchase of an interest in or for the construction of a permanent house for occupation by the depositor within twelve months immediately following the year of withdrawal is exempt from income tax.
Other incentives included 15% reduction in corporate tax , 1.5% reduction in Import Declaration Fee (IDC), 0.5% drop in Railway Development Levy and offering land for development as well as providing favourable financing conditions.
However, the Finance Act of 2025 has removed significant tax incentives, resulting in increased costs associated with affordable housing projects.

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This Promise Tracker is an independent civic-accountability tool designed to monitor and document the progress of public commitments made by the Government of Kenya. Information presented on this platform is compiled from publicly available sources including government publications, parliamentary records, policy documents, and credible media reports. The classifications used in this tracker represent an evidence-based assessment by the platform’s researchers and should be understood as analytical judgments rather than official government determinations. While every effort is made to ensure accuracy and regular updates, the status of promises may evolve as new information becomes available. This website is not affiliated with or operated by the Government of Kenya.

Last updated: March 4, 2026 8:08 am