Housing Levy Calculator (Kenya)
Updated November 2026 · Free · No sign-up
Calculate the affordable housing levy — 1.5% of gross from you, matched by the employer, under the Affordable Housing Act 2024: the cost, the deductibility, and what contributors can claim.
Quick answer: Housing levy = 1.5% of gross salary from the employee + 1.5% from the employer, uncapped, remitted by the 9th. A KSh 100,000 earner contributes KSh 1,500/month (employer adds the same) — deductible before PAYE.
How the Levy Works
The Affordable Housing Act 2024 (the constitutional fix after 2023’s litigation) levies 1.5% + 1.5% on all gross employment income — and extends to non-salaried persons (1.5% of gross income) in phases. Funds flow to the Affordable Housing Fund for the government housing program.
What Contributors Get
- Eligibility to apply for affordable housing units (allocation criteria: contribution history, need bands, county quotas).
- Tax relief: the levy deducts before PAYE — see the stack; an affordable-housing relief (15% of contributions, capped) has existed for purchasers under the program.
- Unlike Nigeria’s NHF, there’s no individual refund-at-60 design — it’s a tax-like levy with program access, which was precisely the political fight.
Worked Example
KSh 100,000 gross: you 1,500 + employer 1,500 = 3,000/month to the fund; over 5 years ≈ 180,000 combined — against the application pathway for units priced via the program’s subsidized tiers.
Compliance
Employer remittance by the 9th with penalties for lateness (3%/month); payslips must itemize it. Self-employed phasing: declarations through KRA. The levy + SHIF + NSSF phases moved Kenya’s statutory wedge from ~7% to ~12%+ of payroll since 2023 — budget reality for both sides.
Frequently Asked Questions
How much is the housing levy?
1.5% of gross salary from the employee, matched 1.5% by the employer — uncapped, on all employment income.
Is the housing levy refundable?
No individual refund mechanism — it funds the affordable housing program; contributors gain application eligibility for units.
Is the levy tax-deductible?
Yes — it reduces taxable income before PAYE computation.
Do the self-employed pay the levy?
The Act extends it to non-salaried persons at 1.5% of gross income in phases via KRA declarations.
What does contributing get me?
Eligibility to apply for program units (criteria include contribution history) and the PAYE deduction — not an individual savings account.
✓ Formula verified • Last updated: November 3, 2026