Nairobi, KENYA: The Kenyan government has scrapped construction levies in a bid to boost investment in the building and construction industry.
During a Cabinet meeting held at State House Nairobi on Tuesday, President Uhuru Kenyatta said that multiple charges levied by various ministries, departments, agencies and county governments for the construction industry had contributed to the increase of costs in the sector.
“This will encourage investors, increase investor confidence and improve the cost of doing business,” Kenyatta noted during the meeting which he chaired.
Cabinet said it had eliminated duplication of roles with a view of ensuring that government ministries and departments performed their core mandate.
The cabinet also agreed that overlapping services will now be performed by the ministry, department or agency best suited to offer the requisite service.
It also decided on the creation of a one-stop shop approach, such as that delivered within Huduma Centres, for licensing and registration of contractors by the National Construction Authority.
According to a 2016 finding by the Oxford Business Group, Kenya’s construction sector continues to see robust growth and remains a central component of the country’s immediate and longer-term economic growth agenda.
The industry’s GDP contribution in 2014 was sh. 259.6bn ($2.86bn), up 13.1% in 2013.
This growth pushed the construction sector’s share of the economy up by a third of a percentage point to reach 4.8% of GDP.