Plans to eliminate taxes on all construction materials utilized in the Affordable Housing project were revealed by President William Ruto.
Ruto emphasized taxes like Value Added Tax (VAT) that have caused the cost of building houses to soar during the opening of the construction of homes in Mombasa County.
He clarified that the action would help Kenyans purchase homes at a reduced cost, advancing his housing agenda.
According to Ruto, the Ministry of Lands will gazete the Affordable Housing Financing in the upcoming weeks, with a focus on the removal of taxes.
The Head of State insisted, though, that taxes on imported household goods and materials will continue as long as efforts are made to increase local production of them.
However, he emphasized that guidelines on mortgage rates for different Kenyans will also be provided by the Affordable Housing Financing, which is scheduled to be gazetted.
For example, homes in the social housing category intended for low-income individuals will be available at a three percent interest rate.
The houses offered to middle-class Kenyans will cost 6% of their income, while houses for upper-class Kenyans will cost 9%.
Ruto stated that the Cabinet had already approved the plan.
Every year, the government intends to build 200,000 new homes.