Home News Architects warn Finance Bill taxes could push up cost of housing

Architects warn Finance Bill taxes could push up cost of housing

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[Architectural Association of Kenya Coast Branch Chairperson Duncan Odhiambo. He has warned that additional taxes would ultimately be passed on to consumers through higher prices for houses, schools, hospitals and other infrastructure projects. Photo/Ahmed Omar/July 25, 2026].

MOMBASA, Kenya — The Architectural Association of Kenya (AAK) has urged the government to suspend proposed taxes on key construction materials, warning that the measures could significantly increase the cost of housing and slow investment in the construction sector.

In a statement on Saturday, the association said higher import duties and excise taxes on products such as ceramic tiles, sanitary ware, glass, aluminium profiles and wood products would drive up the cost of residential and commercial construction.

The architects argued that the additional taxes would ultimately be passed on to consumers through higher prices for houses, schools, hospitals and other infrastructure projects.

“The construction industry cannot and will not remain silent while policies that undermine investment, job creation and affordable housing are imposed without meaningful stakeholder engagement,” said Architectural Association of Kenya Coast Branch Chairperson Duncan Odhiambo.

According to the association, the Finance Bill 2026 proposes a 35 per cent import duty on ceramic tiles alongside an excise duty of KSh50 per kilogram, a move AAK says could significantly increase retail prices.

The association said similar tax measures targeting sanitary ware, glass, aluminium products and selected wood products risk raising construction costs across the entire building sector.

AAK further argued that Kenya has relatively few domestic manufacturers of some construction materials, warning that higher import barriers could reduce competition and leave consumers with fewer affordable options.

The architects said while supporting local manufacturing is a legitimate government objective, taxation should not make housing and commercial developments more expensive.

The association called on the government to review the proposals through consultations with industry stakeholders before implementing the new tax measures.

AAK also warned it could mobilise professionals within the built environment sector to oppose the proposals if the government proceeds without changes.

The construction sector remains one of Kenya’s key economic drivers, supporting thousands of jobs in engineering, architecture, manufacturing, transport and real estate.

Industry players have repeatedly cautioned that rising material costs could slow housing development at a time when the government is seeking to expand affordable housing and stimulate private sector investment.

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