The Kenya Property Investors Association (KEPIA) has warned of a 25 per cent increase in rent owing to the increased taxes in the country.
While speaking to the press on Monday, Ephraim Murigu the Secretary General of the association, explained that landlords and property owners have raised complaints over the proposed Finance Bill 2024.
A rent increase will affect not only tenants in different estates but also business owners who have rented shops and other business premises.
Murigu argued that the landlords had revealed that they would have no option but to increase the rent by 15%-25%. This increase would affect Kenyans who are already dealing with increased prices of other basic commodities.
"I have heard from my members, including landlords and other corporate tenants, who are complaining about the current bill. They will increase the rent by 15%-25% because they have no other option," he revealed.
The SG also noted that besides members of KEPIA, other landlords and property owners have announced plans to increase the rent to survive in this harsh business environment which will be exacerbated if the Finance Bill is passed as it is.
He revealed that some houses will be left empty as some Kenyans opt for cheaper houses while others move to rural areas and underdeveloped estates. He noted that this would be bad for the economy and property owners.
"Currently, landlords are suffering, about 60% are not getting their rent. If you ask a landlord today they'll tell you that most of the spaces are empty, houses and shops for rent. This is because some cannot afford the rent anymore," he added.
Notably, this group of Kenyans is facing other economic burdens such as the increase in the cost of construction materials.
Data from the Kenya National Bureau of Statistics (KNBS) indicate that the prices of construction have been on the rise since January.
"Today, you can't even buy a can of paint, it's up from Ksh2,400 to Ksh3,200. What do they expect us to do?" Murigu posed.
The Finance Bill 2024 has proposed an increase in the taxes as well as the introduction of new taxes which will affect Kenyans and increase the cost of living in the country.
On Tuesday, the National Assembly Finance Committee is expected to present its report on the bill after weeks of public participation.
Since it was unveiled in May, it has been opposed by Kenyans and a section of leaders from both sides who have asked the government to remove the taxes which continue to burden Kenyans.
