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Stakeholders in the real estate sector yesterday criticized the passage of the Finance Bill 2024, terming it oppressive and endorsing calls for its rejection, saying it will result in economic turmoil.

Under the umbrella of the Association of Real Estate Stakeholders (RESA), entrepreneurs in the land sector, led by association chairman Kinyua Wa Iratu, argued that it will spike property and capital gains taxes. These changes could raise the cost of real estate transactions, thereby slowing down property sales and reducing investment in the sector.

“The bill introduces increased land rates for every land within municipalities. This, alongside plans to change land from freehold to leasehold, will not only affect Kenyans but even us in the land selling business,” said Iratu.

Proposed law

Players in the sector also called on the National Assembly to drop the proposed Land Laws (Amendment) (No. 2) Bill 2023 that seeks to tax freehold land in urban regions.

While maintaining that the Bill is punitive and inequitable, the players insisted that the proposed law will introduce taxes and levies on freehold landowners, further impoverishing the already burdened Kenyans.

They said the proposals will allow the government to revalue lands before taxing them according to current rates, adding that if one fails to pay, the land may be auctioned by the government.

“Freehold landowners, who are already burdened with property taxes, will now be compelled to bear an additional annual levy akin to the rent levied on leasehold properties. This essentially amounts to double taxation,” read a statement by association vice chairman Dominic Thuku.