Govt Unveils New Tax Relief to Spur Home Ownership

Hello and welcome to the Money News Roundup where we are covering access to interest deductions on loans for home buyers, opposition to KWS' hike in park fees, and US President Donald Trump's Ksh13 billion charges for Kenyan exporters.

Tax Relief to Spur Home Ownership

If you’ve been eyeing a construction project for your dream home, there’s some good news in the latest Finance Act.

According to Business Daily, the government has expanded the home loan interest relief to now include loans taken for constructing a residential home — not just buying or renovating one. This means that if you take out a loan from a qualified lender to build the house you plan to live in, you can now claim up to Ksh360,000 per year in interest deductions against your taxable income.

Previously, this tax relief was only available to those buying or improving existing homes, leaving out many would-be homeowners who prefer to build from the ground up. Now, with this inclusion of “construction mortgages,” borrowers who want to design their own homes to fit their personal needs and style can also benefit from the tax break — as long as the home isn’t intended for rental income.

“This change encourages homeownership and investment in residential property,” Caroline Owala from Grant Thornton told Business Daily. “But it’s worth noting that the cap of Ksh360,000 might be too low, given how expensive construction can be these days.”

There are some caveats to keep in mind:

• The deduction applies to just one residential property.
• If you live in the house for less than a year, the amount you can claim is reduced.
• The Ksh360,000 cap still stands, even for high-value projects.

Here are other top business headlines this morning;

Tourism Experts Warn KWS Park Fee Hike Could Hurt Kenya’s Global Appeal

Plans by the Kenya Wildlife Service (KWS) to increase park entry fees are facing backlash from tourism experts, who argue the move could derail the country’s goal of attracting 5.5 million international tourists by 2027. According to The Standard, critics say the fee hikes—framed as a response to a Ksh1.4 trillion annual funding shortfall—will likely hurt Kenya’s reputation as a premier safari destination. Tourism strategist Jackyne Njau noted that Kenya’s wildlife heritage predates its infrastructure and global recognition, and warned that higher fees won’t add value to the visitor experience but could instead drive tourist numbers down.

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Instead of pricing out visitors, experts are urging a shift toward innovation and immersive storytelling to revive interest in Kenya’s parks. Ideas floated include ranger-led storytelling lounges, themed safaris, gamified eco-missions for kids, and seasonal wildlife festivals. Former tourism officials and advocates quoted by The Standard stressed that tourism isn’t just about revenue—it’s about emotional connection and national pride. The consensus? Kenya shouldn’t tax the magic of its parks, but rather amplify it.

Beer Slump Hits KRA Revenue as Domestic Excise Collections Dip

The Kenya Revenue Authority (KRA) has reported its sharpest drop in tax collections from locally produced excisable goods and services since the pandemic, largely due to a steep decline in beer sales.

According to Business Daily, domestic excise duty collections for the financial year ending June 2025 fell by 5.75% to Ksh69.39 billion, down from Ksh73.62 billion the previous year. This Ksh4.23 billion drop is the largest contraction in recent years and highlights the continued strain on consumer spending in sectors like alcohol.

Kenya Braces for Billions in Losses as US Tariff Deadline Nears

Kenya risks losing up to Ksh13 billion in export earnings if the government fails to secure a trade deal with the US before the August 1, 2025, deadline set by the Trump administration, per The Standard. The lapse means Kenyan goods, especially apparel, will now face a 10% tariff, putting at risk Ksh12.95 billion ($100 million) worth of annual exports and threatening over 600,000 jobs in the manufacturing sector.

Despite last-minute negotiations, Kenya joins other nations left out of Trump’s “reciprocal tariffs” regime. With AGOA set to expire in 2025 and no renewal in sight, manufacturers warn that export contracts based on duty-free access are collapsing. While Kenya shifts trade focus to China, officials admit the US tariffs will strain local industries.

Key Suspect Arrested in Ksh38 Billion Fake Gold Syndicate

Detectives from the DCI's Operation Support Unit have arrested a suspect linked to a high-stakes gold scam that defrauded a foreign investor of approximately Ksh38 million (USD 265,200). The suspect had been on police radar for months and is believed to have played a key role in the elaborate scheme.

The arrest follows the earlier capture of Steve Okoth Odek (alias David Bett) in December 2024, who was charged in relation to the same fraud. The syndicate allegedly issued fake contracts for over 1,080 kilograms of non-existent gold, offering false assurances such as guaranteed delivery, legal backing, and collateral.

Investigators later discovered that the “gold” was actually a worthless mix of copper, zinc, and tin. The suspect, identified as Shikalo, is currently in custody awaiting arraignment, while detectives pursue two more individuals believed to be part of the criminal network.