Elevated taxation hampers investments in Kisumu real estate

Elevated taxation hampers investments in Kisumu real estate

Elevated taxation hampers investments in Kisumu real estate

It has come to the stake holders’ attention of Kisumu real estates that the newly imposed tax by the county Government of Kisumu is actually the source of slow rate of development in Kisumu real estates sector. This situation has notably affected the number of properties put up by the local and private investors. Both the local and the foreign investors have made their voices heard where by they’re terribly discontented over the push of high property taxation.

This move did not only hinder Kisumu County but all the 47 counties in Kenya are affected, moreover, the situation is perceived as deterrent to the business set up in Kisumu real estate sector and the whole country as a whole. The recent research by the 2014 brand Kenya audits survey indicates dissatisfaction among the possible investors over the new charges and taxes that are being imposed by the County Governments.

It’s projected that the increased charges will only impact the counties with growth opportunities, one of the 47 county chief executive said that they have only engaged the Counties in these subjects and anticipates that no more weighty taxes will be levied upon the investors to make the counties attractive for the business which ultimately will develop the image of the Country completely.

Otieno a marketing executive at west Kenya real estate co in Kisumu noted that when the taxes on properties are high, the demand for building and developing properties in Kisumu County precinct depreciates notably.

He said that just recently private investors wanted to purchase a huge parcel to develop a five star hotel in Kisumu, but after learning that there is a heavy taxation to be included, he opted to hold on and give it a second thought. The County Government needs to review this law are adjust the rates of this heavy taxation, because at the end of the day investors will shy off from the business hence development will absolutely decline from the county levels.

Read more at: www.westkenyarealestate.com