Nairobi City county objects levy imposition

The Nairobi City County government has objected the National governments’ 0.5 % charge levied on construction.

In a letter addressed to Hon. Charity Ngilu, the Cabinet Secretary, Lands, Housing and Urban development and copied to Senator Abu Chiaba, Chairperson, Senate committee on Energy, Roads and Transport and Hon. Maina Kamanda, Chairperson, Transport, Public Works and Housing Committee; Nairobi Governor Dr. Evans Kidero said the regulations were quietly prepared without consultations with the county governments.

Said Dr. Kidero “This levy affects the housing sector that falls within the jurisdiction of the county governments and it should have been prepared with our participation and concurrence. This levy is  bound to impact heavily on housing as well as push the cost of providing urban technical services which would in turn impact negatively on the ability of the county government to expand infrastructure services for socio- economic development.”

The governor noted that the Nairobi City County government and other counties was currently experiencing serious housing deficits and inadequacy of infrastructure  as such this would go against the State’s obligation to provide citizens with adequate and affordable housing.

“There are already numerous levies and charges imposed on the housing and construction sectors and this latest move will only serve to discourage investment in the sector.

Nairobi city county government has been trying to engage various potential developers with a view to interesting them in investing in large scale housing and other infrastructure projects in the county including “the Eastlands Urban Renewal project” and this latest project will definitely scare them away”

The governor urged the National government to revoke  the imposition of the construction levy as contained in the National Construction Authority Act, 2014(Legal notice no 74) as it would adversely affect investor enthusiasm and deny Nairobi Residents the right to adequate and affordable housing and infrastructure.