Calculate your monthly Housing Levy contributions in Kenya using our Housing Levy Calculator tool.
Simply select the payroll period and enter your gross monthly pay to generate a detailed breakdown of both employee and employer contributions.
Housing Levy Calculator
Read: Affordable Housing Levy Rates in Kenya
Housing Levy Calculation Table
| Gross Salary (KSh) | Employee Levy (1.5%) | Employer Levy (1.5%) | Total |
|---|---|---|---|
| 15,000 | 225 | 225 | 450 |
| 20,000 | 300 | 300 | 600 |
| 30,000 | 450 | 450 | 900 |
| 50,000 | 750 | 750 | 1,500 |
| 75,000 | 1,125 | 1,125 | 2,250 |
| 100,000 | 1,500 | 1,500 | 3,000 |
| 150,000 | 2,250 | 2,250 | 4,500 |
These figures are based on the current statutory 1.5% rate.
How to Calculate Housing Levy in Kenya (Step by Step)
Calculating Housing Levy in Kenya is simple once you know the formula.
Step 1: Know Your Gross Salary
Start with your gross salary, not your net pay.
Your gross salary is the total amount you earn before deductions such as:
- PAYE
- SHIF
- NSSF
- Housing Levy
In most cases, this includes:
- basic salary
- regular allowances such as house allowance or commuter allowance
Step 2: Use the Housing Levy Formula
Employee Formula
Housing Levy = Gross Salary × 1.5%
That is the amount deducted from the employee. The legal rate is set at 1.5% of gross salary.
Step 3: Convert 1.5% Into Decimal
To calculate easily:
1.5% = 0.015
So the formula becomes:
Housing Levy = Gross Salary × 0.015
That is the easiest way to calculate it on a calculator or spreadsheet.
Step 4: Multiply Your Gross Salary by 0.015
Now do the actual math.
Example 1: Gross Salary of KSh 20,000
20,000 × 0.015 = 300
Step 5: Add the Employer’s Contribution
The employer must also contribute an equal amount of 1.5% of the employee’s gross salary.
Understand the Total Housing Levy
The total Housing Levy attached to one salaried employee is:
3% of gross salary
This is made up of:
- 1.5% from the employee
- 1.5% from the employer
Formula
Employer Contribution = Gross Salary × 0.015
So if your salary is KSh 50,000:
- Employee pays = KSh 750
- Employer pays = KSh 750
- Total remitted = KSh 1,500
How to Calculate Housing Levy for Non-Salaried Income
If you are not employed under payroll, the law provides for 1.5% of gross income received or accrued, where that income is not already subject to employee payroll deduction.
Formula
Housing Levy = Gross Income × 0.015
Example
If your gross monthly income is KSh 80,000:
80,000 × 0.015 = 1,200
✅ Housing Levy = KSh 1,200
Important: If you are an employer already deducting and remitting for employees, the law also provides specific treatment so you are not charged twice on the same basis.
FAQs
What is the formula for calculating housing levy in Kenya?
The formula is:
Housing Levy = Gross Salary × 1.5%
If you are calculating the total contribution including the employer:
Total = Gross Salary × 3%
Is housing levy calculated before or after tax?
Housing Levy is calculated from gross salary, meaning before deductions such as PAYE, SHIF, or NSSF.
Important
The Affordable Housing Act 2024 mandates a monthly Housing Levy at a rate of 1.5% of an employee’s gross monthly salary. This contribution is matched by an additional 1.5% from the employer, totaling a 3% contribution to the Affordable Housing Fund.
