Real estate developers are worried after the National Construction Authority (NCA) indicated its intention to hire a debt collection agency. The NCA is seeking the services of a debt collection agency that will collect levies owed to them by real estate developers. This levies go back to the year 2017.
The national government had cancelled all levies that were collected by the NCA, NEMA and county governments in a bid to make construction cheaper and more attractive. Levies that were scrapped had already accrued to almost to 2 billion shillings which the authority seeks to recover.
In its adverts the Authority is seeking a competent collection firm that will be able to maintain proper records. Advise both the Authority and the developers of the recovery rate and period. The recovery period is expected to take 24 months according to documents seen by https://www.iconnews.co.ke team.
Kenya has experienced a construction boom in the last ten years. This boom can be attributed to the infrastructure develop that the government has invested in. Before the scrapping of the levy all construction project over 5 million shillings attracted a levy of 0.5% of the total cost.
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According to the NCA the levy charged on construction projects at the time made up 70% of their total revenue. The government has in the past ten years embarked on ambitious infrastructural projects that were set to spur investments.
Some of this projects include the Standard Gauge Railway, The Nairobi Expressway, Rehabilitation of the Longonot -Malaba Railway. Others include construction of the Kenol- Marua dual carriage road, newly commissioned Lamu port among others.
All this projects have spur growth on their own level. This increase in construction has given rise to new revenue streams for the NCA.