Kenya Affordable Housing Levy Calculator
Calculate exact 1.5% employee deduction and 1.5% employer contribution under the Affordable Housing Act 2024 with Affordable Housing Relief (AHR).
🏗️️ Gross Remuneration Details
Includes basic salary, housing allowance, overtime, and recurring taxable allowances.
Total combined monthly remittance payable to KRA (Employee 1.5% + Employer 1.5%).
Housing Levy Statutory Breakdown KRA Unified Payroll
| Component | Statutory Basis | Amount (KES) |
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❓ Frequently Asked Statutory Questions
What is the rate of the Affordable Housing Levy in Kenya?
Under the Affordable Housing Act 2024, the Affordable Housing Levy is pegged at 1.5% of the employee's gross monthly salary for the employee, matched by an equal 1.5% of gross monthly salary contributed by the employer (totaling 3.0%). For non-salaried individuals, it is levied at 1.5% of gross income.
What constitutes "gross salary" for the Affordable Housing Levy calculation?
Gross salary for Housing Levy purposes encompasses basic pay plus all regular cash allowances and taxable benefits, including housing allowances, commuter/transport allowances, overtime pay, bonuses, commissions, and directors' fees. Reimbursements for actual out-of-pocket business expenses are excluded.
Is there an Affordable Housing Relief against KRA PAYE tax?
Yes. Under Section 30A of the Income Tax Act (introduced via the Affordable Housing Act 2024), a resident individual who contributes to the Affordable Housing Levy is entitled to Affordable Housing Relief (AHR). The relief is calculated as 15% of the employee's monthly contribution, up to a statutory ceiling of KES 9,000 per month (KES 108,000 per year).
Is there a maximum statutory cap on the Affordable Housing Levy?
No. Unlike the old repealed 2018 draft proposal that envisioned a cap of KES 2,500, the enacted Affordable Housing Act 2024 contains no monetary upper limit. The 1.5% applies to the entirety of an individual's gross remuneration, regardless of whether their earnings are KES 50,000 or KES 2,000,000 per month.
When must employers remit the Affordable Housing Levy to the Kenya Revenue Authority (KRA)?
Employers are required to remit both the employee and employer portions of the Affordable Housing Levy to KRA through the unified payroll portal on or before the 9th day of the month following the payroll deduction, concurrent with PAYE, NSSF, and SHIF remittances. Late payments incur a statutory penalty of 3% per month or part thereof on the unpaid amount.
Engr. Muhammad Shahzad
Verified Tax & Statutory Systems SpecialistCertified Systems Engineer and International Fiscal Policy Researcher. Specializing in computational labor standards, statutory payroll compliance, and tax withholding architectures across Commonwealth and East African Community (EAC) jurisdictions.