Implementation and Oversight of the Collection Process for the Affordable Housing Levy (AHL) by Kenya Revenue Authority (KRA)

Kenya Revenue Authority (KRA) has notified the public that under the Affordable Housing Act of 2024, it is designated as the entity responsible for collecting the Affordable Housing Levy (AHL).

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Starting from March 19, 2024, all employers must deduct the AHL from their employees’ gross salaries and submit it, along with the employer’s contribution, as outlined below:

• Employees are required to contribute 1.5% of their gross monthly salary.
• Employers are required to contribute 1.5% of their employees’ monthly gross salary.

Additionally, individuals receiving income in Kenya are obligated to remit 1.5% of their gross income as the Affordable Housing Levy to KRA. The deadline for remitting the Affordable Housing Levy is the 9th working day after the end of the relevant month.

Employers must 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 through eCitizen Paybill Number 222 222 or by dialing *222#.

The employer’s contribution to the Affordable Housing Levy is a deductible expense under Section 15 of the Income Tax Act. Resident individuals who pay the AHL are eligible for the affordable housing relief. Failure to comply with the law will result in a penalty equivalent to 3% of the unpaid funds per month.

KRA is committed to providing optimal support to all individuals and will continue to engage and collaborate with stakeholders to enhance compliance with the Affordable Housing Levy provisions.

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For further information, please contact our Contact Centre at Telephone No: 020 4 999 999/0711 099 999, or Email: [email protected].

Source: Kenya Revenue Authority (KRA)

Matthews Ohotto

Matthews Ohotto is a Digital Content Creator at CYBER.CO.KE, specializing in crafting insightful and informative blog posts that empower readers with practical knowledge. Holding a Bachelor’s Degree in Business Information Technology (BBIT) from JKUAT, he blends technical expertise with a passion for clear and impactful communication. He is dedicated to breaking down complex topics into easy-to-understand content that educates and inspires. Need help? Send email to: [email protected]