,
11 tweets,
4 min read
Read on Twitter
@dailynation Majority of Kenyans don’t know the many incentives & tax benefits due to them to enable them to become home owners. However, they remain good on paper if we don’t stimulate development of affordable homes. Some of the benefits are;
@dailynation 1. Affordable housing relief. You can get of as high as 15% of your gross income subject to a maximum of Sh 108k per annum as a relief (it reduces the actual tax paid) if you are registered & saving towards home ownership under an affordable housing scheme.
@dailynation 2. If you are a new home owner, stamp duty is exempted. That’s a whooping 4% off the cost of the house. So, if you buy a Sh3m unit, you save Sh 120k
@dailynation 3. We have doubled the home ownership savings plan deductions from 4K a month to 8k a month
@dailynation By the way I’m not sure why the pundits have been so slow in highlighting this. To a layman, it means while contributing and waiting for a home, your take home salary does not decrease.
@dailynation 4. Once you get a house, and start servicing a mortgage, you get a mortgage relief for the life of the mortgage. The mortgage relief is equal to Sh 3,750 per month subject to a maximum of Sh 25k per annum. It’s important to highlight that a relief reduces your actual tax payable
@dailynation 5. The affordable housing program introduces interest rates never witnessed in the history of this country. It also increases tenure for repayment. Social housing 3%. Low cost housing 5%. Mortgage gap housing 7% all for periods of up to 25 years
@dailynation This is by far the most revolutionary & aggressive incentive to show that at the heart of this pgm we have the real wanjiku in mind. You can pay as low as Sh2,5k a month for 25 years to own a home. If you are salaried,take 30% of your gross,that’s the max you’ll pay to own a home
@dailynation 6. You can now use your pension savings for purposes of putting down a deposit towards home ownership. Our mantra is Boma Yangu, Hadhi Yangu, which means my home, my dignity.
@dailynation GoK & County Governments are identifying land for affordable housing development and will provide offsite infrastructure. This cost of land & Infra is at no cost to you potential home owner. Counties now have Sh30bn to plan their new settlements & build resilient urban Infra
@dailynation In conclusion, the pgm is by no means a perfect one. We are striving to improve it all the time. It’s the best shot since independence geared towards ensuring that hardworking Kenyans have a dignified place they call home. Let’s not allow the perfect stand in a way of a good pgm
