If you are looking for the current affordable housing levy rates in Kenya, the rules are now fairly straightforward: most salaried employees pay 1.5%, employers match that with 1.5%, and certain non-salaried income earners also pay 1.5% of gross income under the current law.
Housing Levy Rates in Kenya
| Category | Rate | Based On |
|---|---|---|
| Employee | 1.5% | Gross monthly salary |
| Employer | 1.5% | Employee’s gross monthly salary |
| Total per salaried employee | 3% | Combined employee + employer |
| Non-salaried income earner | 1.5% | Gross income |
Simple Housing Levy Examples in Kenya
| Gross Salary / Income | Employee Pays (1.5%) | Employer Pays (1.5%) | Total |
|---|---|---|---|
| KSh 20,000 | KSh 300 | KSh 300 | KSh 600 |
| KSh 30,000 | KSh 450 | KSh 450 | KSh 900 |
| KSh 50,000 | KSh 750 | KSh 750 | KSh 1,500 |
| KSh 100,000 | KSh 1,500 | KSh 1,500 | KSh 3,000 |
| KSh 200,000 | KSh 3,000 | KSh 3,000 | KSh 6,000 |
These examples are based on the statutory 1.5% + 1.5% formula.
Also see: Housing Levy Calculator
Housing Levy Rate for Employees in Kenya
Rate: 1.5% of gross monthly salary
This is the amount deducted from an employee’s gross monthly salary as the Affordable Housing Levy. The levy applies to employees in Kenya under the current framework.
Example:
If your gross salary is KSh 50,000:
- Employee Housing Levy = KSh 750
Housing Levy Rate for Employers in Kenya
Rate: 1.5% of the employee’s gross monthly salary
Employers are required to contribute an amount equal to the employee’s deduction. In simple terms, the employer matches the employee’s housing levy contribution.
Example:
If an employee earns KSh 50,000 gross salary:
- Employer Housing Levy = KSh 750
Total Housing Levy per Employee
Combined rate: 3% of gross monthly salary
This is made up of:
- 1.5% paid by the employee
- 1.5% paid by the employer
So while the employee only sees a 1.5% deduction, the total contribution attached to that employee is 3%.
Example:
For a gross salary of KSh 50,000:
- Employee pays = KSh 750
- Employer pays = KSh 750
- Total remitted = KSh 1,500
Housing Levy Rate for Non-Salaried Persons in Kenya
Rate: 1.5% of gross income
The Affordable Housing Act, 2024 also provides for 1.5% of gross income for persons whose income is not already subject to employee payroll deduction.
This is the category that may affect:
- some self-employed persons
- freelancers
- consultants
- other income earners outside standard payroll
Note: In practice, compliance details can vary depending on KRA implementation and filing setup, so it is wise to confirm the latest filing route directly through KRA or iTax.
What Salary is Used to Calculate Housing Levy?
The levy is based on gross monthly salary. KRA has clarified that this generally includes:
- basic salary
- regular cash allowances
Examples of regular cash allowances may include:
- housing allowance
- commuter/travel allowance
- car allowance
It generally excludes irregular or non-cash items such as:
- bonus
- leave allowance
- gratuity
- pension
- severance pay
- terminal dues
Housing Levy Due Date in Kenya
The levy must be remitted not later than the 9th working day after the end of the month in which the salary or income was due.
That means if you are employed, your employer is expected to deduct and remit it within that legal timeline.
Housing Levy Penalty for Late Payment
If the levy is not paid on time, penalties may apply.
KRA’s 2024 notice states that failure to comply attracts a penalty of 3% of the unpaid funds for every month the amount remains unpaid.
Important: Some older notices and summaries mention different wording because the levy rules evolved from the earlier 2023 framework into the 2024 Affordable Housing Act. For current publishing, use the Affordable Housing Act, 2024 / latest KRA guidance as your main reference.
How do I check my housing levy?
You can usually check your housing levy in these ways:
1. Check your payslip
Look for a deduction labeled:
- Affordable Housing Levy
- AHL
- Housing Levy
2. Ask your employer or payroll office
Your HR or payroll team should be able to confirm:
- the amount deducted
- the month deducted
- whether it was remitted
3. Check through KRA / iTax records
Employers declare housing levy alongside payroll-related tax processes through KRA’s iTax framework.
Practical tip: For most employees, the fastest way to verify is your monthly payslip first, then confirm with payroll if anything looks off.
Want to calculate your Housing Levy? Use this Housing Levy Calculator tool to get your estimate instantly.
