KRA offices at Times Tower, Nairobi.
The Kenya Revenue Authority (KRA) has directed all employers to deduct the 1.5 percent Affordable Housing Levy (AHL) from employees.
In a statement on Thursday, KRA said the deductions of the Housing Levy took effect on March 19, 2024.
The taxman noted that the Authority is the designated collector of the Affordable Housing Levy.
“With effect from 19th March 2024, 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 and One point five per centum (1.5%) of the employee’s monthly gross salary by the employer,” read statement in part.
KRA noted that all other individuals who earn income in Kenya are required to remit 1.5 percent of their gross income as the Housing Levy to KRA.
According to the authority, the date for remittance of the Housing Levy is the ninth working day after the end of the month in which the gross salary was due or gross income was received or accrued.
KRA also said all employers will be required to declare their levy and make payments at KRA agent banks or mobile money through the eCitizen Paybill Number 222 222 or the USSD code *222#.
“KRA clarifies that all employers are required to declare the AHL under sheet “M” of the PAYE return on itax; 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 through eCitizen Paybill Number. 222 222 or by dialing *222#,” KRA added.
Kenyans who make contributions to the Levy will be entitled to a housing tax relief at 15 percent of the amount deducted.
However, KRA warned that any person who fails to comply with the law shall be liable to payment of a penalty equivalent to 3 percent of the unpaid funds for every month if the same remains unpaid.
President William Ruto on Tuesday assented to the Affordable Housing Bill, after it was passed by Parliament.
Also Read: Government Reveals Identities Of 2 KRA Officials Whose Car Was Swept Away By Floods
