You will be deducted upto Ksh 5,000 to fund the Affordable Housing Scheme under the Big 4 Agenda

Times Tower,Kenya Revenue Authority Headquarters

Net salary of employees in the public and private sector is expected to go down 1.5percent in May as the Government directive to deduct housing levy takes effect.

A notice in the local dailies indicates that employers are to deduct and remit the levy by the 9th of every succeeding month.

The notice reads “The Ministry of Transport, Infrastructure, Housing, Urban Development and Public works in conjunction with Kenya Revenue Authority wishes to inform employers, employees and the Public that the provision of the Finance Act 2018 relating to Housing Fund Levy has come into effect.

Both the employer and the employee shall each contribute 1.5% of the employee’s monthly basic salary, provided that the sum of the total monthly contributions shall not exceed five thousand shillings. Voluntary contributions may also be made to the scheme at a minimum of two hundred shillings per month.

The employers are required to deduct and remit the levy together with other statutory levies from both the employer and employee by the 9th of each succeeding month together with other payroll statutory deductions. The first contribution shall be due by 9th May 2019.

The Housing Fund shall be used to finance the Affordable Housing Scheme under the Big 4 Agenda. The benefits of contributions in respect of the employee shall include;

1.Purcahese of a home under the affordable housing scheme.

2. In case of ineligibility for a home the contribution may be transferred;

  • To a pension scheme
  • To another person on the scheme
  • As cash to self, spouse or a dependent child.”



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