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Employees To Pay Housing Tax From May 2019

Employees To Pay Housing Tax From May 2019

The Housing Fund Levy, which is aimed to fund president Uhuru Kenyatta’s Big 4 Agenda on affordable housing, has been affected and employers will from 9, 2019 be required to remit 3 percent of each employees pay to the tax man.

Both the employer and the employee will each contribute 1.5 per cent of the employees monthly basic salary. The maximum contribution has been capped at KSh 5,000.

According to a notice published in the dailies by the Ministry of transport, infrastructure, housing, Urban development, and public works together with the Kenya Revenue Authority (KRA), the first contribution shall be due by 9th May, 2019.

“Employers will be required to deduct and remit the levy together with other statutory levies from both the employer and the employee by the 9th of each succeeding month together with other payroll statutory deductions,” the notice read in part.


Under his Big 4 Agenda, Uhuru aims to provide 500,000 decent, affordable housing units by 2022. The housing project is expected to break ground at Park Road, Nairobi in July 2018.

1,500 units will be constructed on 7.9 acres of land along Park Road, Ngara, next to Park Road primary school and Muslim Academy. They will comprise 105 one-bedroom units, 540 two-bedroomed units and 855 three-bedroom units.

Affordable Housing Allocation

Treasury Cabinet Secretary Henry Rotich had earlier said that the government would use a lottery scheme to give the affordable homes to deserving Kenyans.

“In terms of priority, the first ones in line to get the affordable housing will be the contributors. This is how it works in other countries… we will thereafter determine whether the contributors will access (the homes) on the first-come-first-served basis or use a lottery system as it happens in Ethiopia,” said Rotich.


The government has also set up a website where Kenyans can register and submit their details in order to qualify for a house allocation under the affordable housing project. Click HERE to register.


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