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.