Construction Costs Set to Surge as Fuel Prices Soar
After the Energy and Regulations Authority (EPRA) reviewed fuel prices on July 1. Engineers from a Nairobi-based construction firm warned Kenyans on Sunday, July 2. To prepare for a rise in the cost of building materials.
Joseph Muturi, the managing director of Precise Civil Engineering. Bemoaned to the media that the real estate industry was severely impacted by the increase in fuel prices from Ksh180.4 to Ksh195.53 per liter of petrol.
President William Ruto signed into law the Finance Act 2023, which increased the Value-Added Tax (VAT) on petroleum products from 8% to 16%.
The only solution, he stated, would be for the government to provide developers with incentives.
“Kenya’s construction industry is facing difficulties due to the increased cost of construction materials. He pleaded with the government to reduce taxes to create more incentives in the construction industry.
The ripple effect, he cautioned, could force developers to use counterfeit materials and seek substandard services from contractors.
This trajectory could ultimately increase the number of buildings that collapse, posing a threat to tenants and the economy.
ALSO READ: Gachagua Urges Kenyans to Save, Break Free from External Borrowing
“Kenya Bureau of Standards (KEBS) should follow up on testing of construction materials so that we have stable buildings and the construction industry has confidence in the materials,” he added, cautioning that increasing the price of fuel by Ksh13 may be retrogressive in the end.
In April 2022, KEBS introduced a certification program mandating that manufacturers of structural steel, cement, and roofing tiles implement quality control measures within their manufacturing facilities to reduce the use of substandard building materials.
On June 19, KEBS stated in response to a spate of building collapses in Kenya, the most recent of which occurred on June 15.
Several people were tragically trapped beneath a three-story building under construction in the Sagana neighborhood of Murang’a.
Muranga County Governor Irungu Kang’ata confirmed the incident and stated that the building’s construction was authorized in 2021. However, he pointed out that the approval process was flawed because the structure was constructed on riparian land.
In a separate incident on May 23, a building under construction in Ruiru collapsed, burying two construction workers.
Margaret Mbugua, the deputy county commissioner, disclosed that the contractor lacked the required documentation proving he had permission to proceed with the project.
Construction Costs Set to Surge as Fuel Prices Soar
HEY READER. PLEASE SUPPORT THIS SITE BY CLICKING ADS. DON’T FORGET TO HIT THE NOTIFICATION BELL FOR MORE UPDATES AROUND THE GLOBE.
