The Finance Bill 2025 proposes a reduction of Export & Investment Promotion Levy from 17.5pc to 5pc for a number of construction related products.
The products include semi-finished products of Iron or non-alloy steel; bars & rods of iron or non-alloy steel.
The levy introduced in 2023 was meant to discourage imports and spur local steel production, placing a 17.5pc charge on a range of steel products.
Local manufacturers heavily rely on imported semi-finished steel as domestic capacity remains limited.
According to the Kenya National Bureau of Statistics Construction Input Prices Indices, steel remains one of the most expensive construction materials, edging above the 150 cost index.
If the proposal sails through, the revised rate is likely to ease pressure on developers by lowering construction costs.
