KENYA - THE AFFORDABLE HOUSING ACT, 2024, EFFECTIVE MARCH 2024

KENYA - THE AFFORDABLE HOUSING ACT, 2024, EFFECTIVE MARCH 2024

On Tuesday, 19th March 2024, Kenya’s President signed into law The Affordable Housing Act, 2024, which amends the legislation which originally implemented the Affordable Housing Levy in 2023 in the Finance Act, 2023.

The Act requires employees to contribute 1.5% of their gross monthly salary, matched by their employers, into the Affordable Housing Fund.

The Act requires employers to remit this to the KRA (the collector on behalf of the Affordable Housing Fund) by the 9th of the following month.

Please note that this information is based on a copy of the Affordable Housing Act, 2024, available in general circulation, which has not yet been confirmed as the copy assented to by the President. We wait to receive the version published in the Kenya Gazette

The KRA also published a notice (see below) to inform employers that effective 19 March 2024, employers must remit this using tab M of the iTax file.

The employee contribution toward the Affordable Housing Levy is also allowed as a tax deduction in terms of the Third Schedule of the Income Tax Act, however, currently the P10 iTAX file does not make provision to allow this deduction on the payroll, we have escalated this to the KRA for clarification. Once more information is available it will be communicated. https://www.kra.go.ke/news-center/public-notices/2099-collection-of-the-affordable-housing-levy-by-kenya-revenue-authority-2



    • Related Articles

    • Kenya | High Court Rules Affordable Housing Levy Lawful

      On Tuesday, 22 October 2024, Kenya’s High Court ruled that the affordable housing levy, introduced through the Affordable Housing Act effective March 2024, is lawful. The High Court has found that adequate public participation took place, allowing ...
    • Kenya - Affordable Housing Levy Contributions Tax Relief Update

      The Affordable Housing Act, 2024 (AHA), published and gazetted on 19 March 2024, contains consequential amendments as specified in section 60 of the Act and in the Third Schedule to the Act. According to section 60 of the AHA, the Acts specified in ...
    • Kenya: Public Notice Affordable Housing Levy (AHL)

      As per the public notice issued by the KRA on 15 August 2023, please note: The Finance Act 2023 introduced the AHL with effect from 1st July, 2023. Kenya Revenue Authority has been appointed as the collecting Agent of the Affordable Housing Levy ...
    • Kenya: Collection Of Affordable Housing Levy By Kenya Revenue Authority

      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 - High Court declares 'Affordable Housing Levy' unconstitutional

      On Tuesday 28th November 2023, Kenya's High Court declared the 1.5% levy intended to fund affordable housing unconstitutional. The High Court has stayed the ruling until the 10th January 2024 to allow for the Government to appeal. This means the ...