President Uhuru Kenyatta has signed into law a Bill granting a 15 per cent relief for Kenyans buying houses under the Affordable Housing Scheme.
The Head of State also signed an amendment to the income tax to create a new section that establishes an Affordable Housing Relief set at 15 per cent of the gross remunerations. The tax relief is however not supposed to exceed Ksh 108,000 per annum as set out in the act.
He also signed into law an amendment to the Stamp Duty Act to exempt first-time home buyers under the affordable housing scheme from Stamp Duty. Amendments to the Stamp Duty Act also include provisions to allow the Collector of Stamp Duties to refer a valuation of property for the purpose of Stamp Duty to a registered and practicing valuer. The amendment to the Stamp Duty Act is intended to fast track valuations at the Ministry of Lands.
The reprieve is a goal towards the achievement of the Big 4 agenda that aims at providing affordable housing of constructing 500,000 new houses by 2022.
Other signed amendments include Value Added Tax Act to effect zero rating of ordinary bread, copra, linseeds and mustard seeds.
Similarly, the VAT Act amendment zero rates inputs or raw materials for electric accumulators and separators. The aim of the amendment is to support the manufacturing pillar of the Big Four Agenda by making manufacturing of the items, especially batteries, cheaper.
