Kenyans planning to build residential and commercial units this year are set to spend more following the implementation of the Tax Laws (Amendment) Act, of 2024.
As detailed in a notice published by the Kenya Revenue Authority (KRA) on Tuesday, January 7, several items such as ceramic tiles, sinks and toilets are set to increase in prices owing to an increase in Excise Duty.
For instance, KRA noted that imported ceramic sinks, wash basins, wash basin pedestals, baths, bidets, water closet pans, flushing cisterns, urinals and similar sanitary fixtures would have their excise duty set at 5 per cent of custom value or Ksh50 per kg.
Excise duty for wall tiles will also be charged at 5 per cent of custom value or Ksh200 per square meter.
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Already, architects warned that the prices of the items would increase significantly as many Kenyans seek quality products that are imported.
Finishing for both residential and commercial projects will rise sharply to meet high-quality requirements," the architects noted in its Status of the Built Environment Report 2024 report.
"The promotion of tile production at the local level will indeed reduce dependence on imports. However, this may be at a cost in terms of reduced choice and quality."
Also set to increase in prices is imported glass. The new applicable Excise Duty is 35 per cent of custom value or Ksh200 per kg
"Projects with a lot of glass, like high-end apartments and office buildings, will see tremendous cost increases," the architects added.
"Limited local production may encourage developers to change materials or redesign building facades."
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