The building industry in Kenya is set for a faster growth this year after the government scrapped two crucial levies that were prohibitive to developers.

The government in last June's budget estimates removed the National Environment Management Authority (NEMA) and National Construction Authority (NCA) charges set at between 0.1 percent and 0.5 percent of construction costs.

This, however, was to take effect from January 1, 2017 with the NCA confirming in a statement Monday that it is no longer collecting the levies.

"The NCA has been imposing a construction levy of 0.5 percent of the value of any contract which exceeds 48,076 U.S. dollars upon registration of the project. To facilitate ease of doing business and spur growth of construction sector, the government has set aside payment of construction levy with effect from January 1, 2017" said the NCA Director Daniel Manduku.

However, all developers, government agencies and individuals intending to undertake any project are required to register them and acquire approvals. The move will spur development by reducing costs and increase compliance especially from non-institutional developers.

Construction Industry to Grow as National Construction Authority (NCA) Scrap Levies

The building industry in Kenya is set for a faster growth this year after the government scrapped two crucial levies that were prohibitive to developers. The government in last June's budget estimates removed the National Environment Management Authority (NEMA) and National Construction Authority (NCA) charges set at between 0.1 percent and 0.5 percent of construction costs.

This, however, was to take effect from January 1, 2017 with the NCA confirming in a statement Monday that it is no longer collecting the levies.

"The NCA has been imposing a construction levy of 0.5 percent of the value of any contract which exceeds 48,076 U.S. dollars upon registration of the project. To facilitate ease of doing business and spur growth of construction sector, the government has set aside payment of construction levy with effect from January 1, 2017" said the NCA Director Daniel Manduku.

However, all developers, government agencies and individuals intending to undertake any project are required to register them and acquire approvals. The move will spur development by reducing costs and increase compliance especially from non-institutional developers.