TAXES & REAL PROPERTY IN KENYA | Part 5: Ownership Costs

Once the Developer has finished the Construction of his infrastructure project, there are taxes and costs that accompany the privilege of Ownership.

I have also included in this dialogue the administrative costs the Developer incurred in undertaking the Construction project e.g. the Single Business Licence. In any case, such costs are usually passed to the final owner of the building.

4.1 Property Taxes

Taxes levied on the owners of property or the construction facilities mainly in an effort to redeem the government for allowing the developer to use the land for which it is the custodian

Land Rent- Paid to Ministry of Lands annually as determined by the Chief Valuer

  • Land Rate- Paid to Local Authorities annually
  • Income Taxes- Varies from 10% to 30% Paid by individual developers on earned income
  • Corporation Tax – is taxed separately from individuals because it is recognized as a separate legal entity. It is paid at the rate of 30% by Corporate developers on earned income
  • Single Business Licence- Paid by real estate developers and Contractors.

-Minimum Kshs.20,000 annually

  • Other Incidental Costs e.g. of hiring Tax Consultants

The Other Parts of the Series are

Part 1 | An Overview

Part 2 | Land transaction Costs

Part 3 | Consultancy Fees/Costs

Part 4 | Construction Costs/Taxes

Part 6 | Economic Impact of Taxes & Proposed Solutions

@UjenziBora

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~ by ujenzibora on July 23, 2010.

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