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Originally published by Nation Business
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business
June 12, 2026
3h ago

Affordable housing developers face higher costs on scrapped VAT exemption

Affordable housing developers face higher costs on scrapped VAT exemption

Analysts say removing VAT exemptions could result in slow affordable housing development...

✨ Key Highlights

Developers of Kenya's affordable housing program are facing increased construction costs as the VAT exemption on related goods has been removed, shifting them to standard-rated supplies.

  • The standard 16 percent VAT will now apply to construction materials like cement and steel.
  • This change impacts the National Treasury's affordable housing initiative, a flagship government project.
  • Analysts at KPMG warn this could slow down affordable housing development and increase prices for consumers.

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