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 project value. Property investors have since September 2013 been paying Environmental Impact Assessment (EIA) fees as a percentage of the value of projects to NEMA, resulting in higher costs especially for big projects. 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.
The move by the government is aimed at facilitating ease of doing business and to spur growth in the construction sector.