The real estate sector is blossoming following the striking out of the contentious Land Laws (Amendment) Bill 2023 that sought to tax freehold land in urban areas.
Players in the sector said the bill introduced in Parliament by the National Assembly Majority Leader and Kikuyu MP Kimani Ichung’wah had scared off investors in properties and housing.
They said the bill was punitive and inequitable as it sought to introduce taxes on freehold land, which would have further impoverished the already burdened Kenyans.
Speaking during awards organised by Dependable Brands in Nairobi, the stakeholders led by Dr George Wachiuri, the proprietor of Optiven Group, hailed the move to drop the contentious bill saying that it was a significant boost to the sector.
Wachiuri said Kenyans are investing in land and properties in large numbers, adding that those who had halted payment for their properties resumed after the proposed law was dropped.
“The bill would have hampered development across the country if it had seen the light of day. Investors in land and housing had shelved their ambitions to own homes and properties after word spread that they would be paying rates for freehold properties. We are, however, grateful that the plan was dropped and Kenyans, even those in the diaspora, are massively investing in the sector,” Wachiuri said.
Fanaka Real Estate CEO Moses Muriithi said increased taxation in the sector has undermined investment, which has in turn caused ripple effects in the economy.
He singled out the recent increment of stamp duty in municipalities close to urban areas from two to four percent, which has seen prices of land and houses in the urban rise thereby making it difficult for ordinary Kenyans to own homes.
“The government should be considerate of the current economic situation in the country before introducing more taxes that will scare away investors who are pivotal in turning around the country’s economy,” Muriithi said.
He called on the government to focus on implementing infrastructure projects including roads, water and electricity even in remote parts of the country to open up regions for settlement and investments.
“Many Kenyans have bought lands but they are yet to develop them or settle due to lack of requisite infrastructure. This is what the government should focus on, to enable Kenyans to settle in their own homes. It will solve about 80 per cent of the housing problems the country is facing,” he said.
Wilstone Homes managing director Egidio Kinyanjui, while noting that the real estate sector is key to the country’s development, called on the government to come up with laws and policies that will create an enabling environment for the sector.
He said the sector contributes creates job opportunities for Kenyans, especially the youth.
Meanwhile, the stakeholders called on Kenyans planning to invest in land or homes to do proper due diligence to avoid falling prey to fraudsters.
Top Care Lands chairman Peter Muturi said Kenyans have lost billions of shillings to unscrupulous individuals and land buying firms in fake land deals.
some of the firms that were feted include Zani Properties, Fahari Concept, Briko Homes, Adval Property, Silverseed Property, Kenya Homes, Finsco Africa, Willstone Homes, Topcare Land Investment, Think Real Real Estate, Silverseed Property and Uwezo Land Limited.
Others are Miliki Space, Amara Realtors, Optiven, Icon Prime Property, Imarika, AMG Realtors, Pekan Real Estate, Hyssop Limited, Legacy Estate, Gateway Homes, Username Investment abnd Fanaka Real Estate.