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Treasury extends tax relief to home construction loans
Data by the Kenya National Bureau of Statistics shows that homeownership rates in Kenya have decreased, with 61 percent of households owning homes compared to 64 percent a decade ago.
Kenyans tapping loans to build their residential homes have been handed a boost after the Treasury expanded a preferential provision that now allows them access to interest deductions against their taxable income.
In changes through the Finance Act 2025, taxpayers can now claim an annual deduction of up to Sh360,000 on interest paid for building, buying, or improving a residential property—provided the loan is from one of the prescribed lenders.
