Construction

The 16% VAT on Construction Materials: Managing Your 2026 Build Budget

By Elizabeth Costabir2026-02-0913 min read
The 16% VAT on Construction Materials: Managing Your 2026 Build Budget

Budgeting for the 16% Jump

The Finance Bill 2025 reintroduced 16% VAT on key construction materials like cement and steel. We analyze why this has led to a 10% rise in off-plan apartment prices in areas like Ruaka and why developers are now turning to alternative materials like Bamboo and Recycled Bricks.

Tags

VATConstruction CostsFinance Bill
Elizabeth Costabir

Elizabeth Costabir

Senior Market Analyst at Murivest Realty Group with over 20 years of experience in commercial real estate investment and market research. Sarah specializes in identifying emerging market trends and investment opportunities in Nairobi's commercial property sector.