Affordable Housing Levy Statutory Compliance Guide
The Affordable Housing Levy is a statutory deduction introduced under the Affordable Housing Act. It applies to all employee salaries and gross incomes, designed to fund low-cost housing developments in Kenya.
Statutory Requirements & Compliance:
- Deduction Rate: The levy is charged at 1.5% of the employee's gross monthly pay.
- Employer Matching: The employer is legally required to match the employee's 1.5% contribution, making a total of 3.0% remitted to KRA.
- Filing and Deadlines: Employers must declare and remit these housing levy contributions through the KRA unified return portal on or before the 9th of the following month. Failing to do so triggers a steep penalty of 2% of the unpaid amount for every month it remains unpaid.