Housing Levy Kenya 2026 - What It Is and How Much You Pay
MGLSHub
MGLSHub Editorial Team
Mwenda checked his January 2024 payslip and found a new deduction he had never seen before. It said Housing Levy: KES 900. His gross salary was KES 60,000. He had not been told about it. Three months later, his employer was also deducting their own 1.5% on top. This guide explains everything about the levy that confused millions of Kenyans.
What the Affordable Housing Levy Is
The Affordable Housing Levy (AHL) is a statutory deduction introduced under the Affordable Housing Act 2023. It requires every employed Kenyan to contribute 1.5% of their gross monthly salary toward a government housing fund. The employer also contributes a matching 1.5%, making the total contribution 3% of the employee gross salary every month.
The levy is collected by KRA through the payroll system and remitted by the 9th of the following month. It applies to all employees in both the public and private sectors. Self-employed individuals are not currently subject to the levy.
Housing Levy Calculation 2026
| Gross Salary (KES) | Employee (1.5%) | Employer (1.5%) | Total to Government |
|---|---|---|---|
| 15,000 | 225 | 225 | 450 |
| 30,000 | 450 | 450 | 900 |
| 50,000 | 750 | 750 | 1,500 |
| 80,000 | 1,200 | 1,200 | 2,400 |
| 100,000 | 1,500 | 1,500 | 3,000 |
| 200,000 | 3,000 | 3,000 | 6,000 |
"The Affordable Housing Levy is charged at 1.5% of the employee gross monthly salary, with the employer contributing a matching 1.5%. The combined contribution of 3% is remitted to KRA by the 9th of the following month." KRA Official Notice, 2024.
Is the Housing Levy Legal
The Housing Levy faced a legal challenge in 2023 when the High Court initially declared it unconstitutional. The Court of Appeal overturned this ruling in November 2023, upholding the levy as constitutional. The Supreme Court dismissed a further appeal in 2024, confirming that the levy is legally enforceable and all employers must deduct and remit it.
Related Guides Worth Reading
The Housing Levy is one of four deductions on your payslip. For the complete picture including PAYE, SHIF, and NSSF, read our PAYE calculator guide which breaks down a KES 80,000 salary with every deduction shown clearly.
If you are looking for affordable housing in Nairobi while contributing to the levy, our cheapest estates in Nairobi 2026 guide covers real rent prices across 10 major neighbourhoods with a full comparison table.
Conclusion - The Housing Levy Is Here to Stay
The Affordable Housing Levy survived two court challenges and is now firmly part of Kenya payroll law. At 1.5% of gross salary, it is the smallest of the four statutory deductions for most employees. Use the MGLSHub housing levy calculator to verify your deduction is correct every month.
Housing Levy Calculator Kenya
Enter gross salary. Get employee and employer Affordable Housing Levy contributions at 1.5% each.
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