Public notice from KRA:
Kenya Revenue Authority (KRA) would like to inform members of the Public that the Cabinet Secretary, Ministry of Lands, Public Works, Housing and Urban Development through a Public Notice dated 3rd August, 2023, has appointed Kenya Revenue Authority as the collecting Agent of the Affordable Housing Levy (AHL).
With effect from 1st July, 2023, all Employers are required to deduct the AHL from the employee’s gross salary and remit together with the employer’s contribution as follows:
- One point five per centum (1.5%) of the employee’s gross monthly salary by the employee;
- One point five per centum (1.5%) of the employee’s monthly gross salary by the employer.
KRA wishes to further clarify that all employers are required to declare the AHL under sheet “M” of the PAYE return on itax and generate a payment slip under the tax head “agency revenue” and tax sub-head “Housing Levy” and make payments at KRA agent banks or mobile money.
Please note that the employer’s contribution to the Affordable Housing Levy is an allowable deduction under Section 15 of the Income Tax Act.
An employer who fails to comply with the law shall be liable to payment of a penalty equivalent to two per cent of the unpaid funds for every month if the same remains unpaid.
KRA is committed to ensure employers are optimally supported and will continuously engage and collaborate with stakeholders to enhance compliance with the Affordable Housing Levy provisions.
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