President William Ruto announced plans to remove taxes on all building materials used in the Affordable Housing project.
Speaking during the launch of the construction of houses in Mombasa County, Ruto highlighted taxes such as Value Added Tax (VAT)that have seen the cost of constructing houses shoot up.
He explained that the move would see Kenyans get to buy houses at lower prices which is aimed at his housing agenda.
Ruto added that the removal of taxes will be highlighted in the Affordable Housing Financing which will be gazetted by the Ministry of Lands in the coming weeks.
However, the Head of State maintained that the taxes on imported household materials and items will remain as they push to improve local production for the same.
"I am going to remove taxes on all building materials used in affordable housing so that they can be accessed at a cheap price.
"We have agreed that we cannot continue to import the materials. That is why we have placed taxes on imported furniture," he stated.
On the other hand, he highlighted that the Affordable Housing Financing set to be gazetted will also give guidelines on mortgage rates for various Kenyans.
For instance, houses under the social housing category that targeted low-income earners will be offered at an interest rate of 3 per cent.
Kenyans categorised in the middle class will receive the houses at 6 per cent while those in the upper class will have the houses offered at 9 per cent.
Ruto added that the plan had already been agreed by the Cabinet.
"We have the opportunity in our lifetime to change and transform Kenya through affordable housing programme," he stated.
The government plans to construct 200,000 houses every year.
