All employees irrespective of their contract of service shall pay the affordable housing levy (AHL), Kenya Revenue Authority (KRA) has stated.
In a notice, the taxman clarified that it was targeting the gross monthly salary which constitutes basic salary and regular cash allowances. “This include housing, travel or commuter, car allowances and such regular cash payments and would exclude those that are non-cash as well as those not paid regularly such as leave allowance, bonus, gratuity, pension, severance pay or any other terminal dues and benefits.
“Taxpayers paying housing levy under Section 31B of the Employment Act are not eligible for Affordable Housing Relief under the Section 30A of the Income Tax Act Cap. 470,” said KRA.
The Ministry of Lands, Public Works, Housing and Urban Development early August appointed the Kenya Revenue Authority as a collection agent of affordable housing levy.
The ministry on August 3rd notified members of the public that the levy is now in effect from 1st July, following lifting of temporary orders barring the implementation of Finance Act 2023.
The levy is payable by the employee and employer at a rate of one point five per cent of the employee’s gross monthly salary by the employee, and one point five centum of the employee’s gross salary by the employer.
The money shall be remitted by the employer not later than nine working days after the end of the month in which the payments are due.
Ministry Appoints KRA To Collect Housing Levy From 1st July – Kenyan Wallstreet
