Developers to import materials due to weak shilling

Real estate developers are now considering importing construction materials in the wake of the weakening shilling.

Building materials which include steel and cement have over the past few months risen by up to 20 per cent forcing foreign companies to bear the brunt.

Most of the imports are priced in dollars due to its stable value against the local currency.
Currently, the US dollar is trading at Sh150 as compared to Sh147 October.

Local developers, however, hold a contrary view that the high taxation on imported materials might end up eating into the profits.

The government introduced a 30 per cent tax on all materials in a bid to support local manufacturers.
Brownstone Capital sales executive Peter Ng’ang’a says importing only applies when they are not available locally.

“To import or not depends with the developer since there are many factors to consider including the risks,” he said in an interview.

Real estate

Investment in real estate remains the most profitable venture in the country currently that can guarantee passive income.

Rapid urbanisation and the high demand for houses continues to push more local developers into the business.

With the government’s affordable housing plan aimed at ensuring more Kenyans own homes, real estate firms are targeting long term investors looking to cash on the huge deficit.

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