TAXES & REAL PROPERTY IN KENYA | Part 4: Construction Costs/taxes

We shall briefly examine the various taxes and costs involved in the actual Construction Process after the project has been designed and documented.

3.0 Construction Costs/Taxes

These costs are incurred in the actual process of Construction. They include Cess Fees, Transport Costs including taxes therein, Value Added Taxes etc


  • 16% VAT on inputs and equipments
  • 16% VAT on Contractor Payments
  • Import taxes – Import Duty is a charge levied on goods brought in from other countries. E.g. on Lifts, Sanitary Appliances
  • KPA Charges– e.g. Import Declaration Expenses
  • Cess Fees
    • On Sand e.g. Kshs.1,000/Lorry (Machakos County Council)
    • On Ballast
    • On Building Stone
    • On hardcore
  • Transportation Taxes (approx 25%)
    • Fuel Levy
    • Road Licence
    • TLB Requirements

  • Training Levy- 0.25% For works above Kshs. 50,000 as per provisions of the Industrial Training Act
  • 0.2% Kenya Bureau of Standards Levy

The Other Parts of the Series are

Part 1 | An Overview

Part 2 | Land transaction Costs

Part 3 | Consultancy Fees/Costs

Part 5 | Ownership Costs

Part 6 | Economic Impact of Taxes & Proposed Solutions

@UjenziBora

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~ by ujenzibora on July 23, 2010.

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