Tuesday, November 11, 2014

Elevated taxation hampers investment in Kisumu real estate




It has come to the stake holders’ attention of Kisumu real estate’s that this newly imposed tax by the county Government of Kisumu is basically the source of slow rate of development in Kisumu real estate’s sector. This condition has notably affected the number of properties installed by the local and non-public investors. Both the local and the foreign investors have made their voices heard whereby they’re terribly discontented about the push of high property taxation.
This move is not going to only hinder Kisumu County but all the 47 counties in Kenya are affected, moreover, the circumstance is perceived as deterrent to the business set up in Kisumu real estate sector plus the whole country in its entirety. The most recent research from the 2014 brand Kenya audits survey indicates dissatisfaction among the many possible investors regarding the new charges and taxes normally imposed by the County Governments.
It’s projected that the increased charges will certainly impact the counties with growth opportunities, one of the 47 county chief executive stated that they've only engaged the Counties in such subjects and anticipates that there aren't going to be any weighty taxes will be levied upon the investors in order to make the counties attractive for the business which ultimately will develop picture of the Country completely.
Evans a marketing Executive in a premier real estate in Kisumu noted that whenever the taxes on properties are high, the demand for building and developing properties in Kisumu County precinct depreciates notably.
He said that just recently private investors wanted to purchase a huge parcel to develop a five star hotel in Kisumu, but after learning that there is a heavy taxation to be included, he opted to hold on and give it yet another thought. The County Government must review this law and adjust the rates of this heavy taxation, because at the end of the day investors will shy disconnected from the venture hence development will absolutely decline from the county levels.
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