Housing Levy Calculator Kenya 2026

What the Housing Levy is

The Affordable Housing Levy funds the government's affordable housing programme. It is charged on employees' gross pay, and employers pay a matching amount. The employee's share is 1.5% of gross monthly pay, and the employer's share is 1.5%. Both are collected through payroll and paid to KRA, usually together with PAYE.

The levy has been through court challenges and legislative changes since it was first introduced. The current form is set out in the Affordable Housing Act, and the calculator uses whichever rate is in force on the date you choose.

Who pays what

• Employees have the levy deducted from their pay. It appears on the payslip next to NSSF and SHIF.
• Employers pay their own share on top of the salary. It is part of the true cost of employing someone, which the calculator shows in the total.
• The self-employed are generally not charged this levy on their own income, though they may have other obligations under the Act. Check with KRA.

A worked example

On a gross salary of KES 100,000 the employee levy is KES 1,500.00 and the employer levy is KES 1,500.00. The employer's share is paid on top of the salary, not taken from it.

Effect on your PAYE

Originally, the levy was not deducted before tax, and employees received a relief equal to part of the levy instead. From 27 December 2024 the employee's levy became deductible when calculating taxable pay, which lowers PAYE. The calculator shows which treatment applies for your date, and the PAYE calculator shows how the levy and the other statutory deductions combine.

Because it reduces taxable pay, the real cost of the levy to a taxpayer is lower than the amount deducted. At a marginal rate of 30%, for example, each shilling of levy reduces tax by thirty cents.

Using the calculator

Enter your monthly gross pay. The result lists the employee levy, the employer levy and the total remitted, and says whether the levy is deductible for the chosen date. If the date is before the levy existed, the calculator says no levy applies.

Things worth checking on a payslip

• The base. The levy applies to gross pay, which includes taxable allowances and, in many payrolls, benefits. If your payslip uses a different base, ask payroll why.
• The rate. A change in the rate would be announced by law. If your payslip shows something different from this page, compare the dates.
• Remittance. Employers must pay the levy to KRA on time. Late payment leads to penalties for the employer, not the employee, but a missing remittance can cause problems with your records.
• Refunds. Contributions have been treated as refundable in some circumstances, such as for people who later buy a home through the scheme or after a period set by law. The rules have changed, so ask KRA or the housing authority before assuming a refund.

About these figures

The rates are taken from the rates held for this site, and they carry a "last verified" date once they have been checked against the source. Housing Levy rules have been revised more than once, so always confirm the figure that applies to you with your employer or KRA. This page gives estimates for information only.

Questions employees ask

Many employees ask whether the levy is refundable or earns a return. The law has treated it as a levy that funds the housing programme, and the rules on refunds and registration of contributors have changed through legislation and court decisions, so ask your employer and KRA what applies now. Others ask why the levy applies to allowances: the base is gross pay, so allowances count. If your payslip shows no levy for months when it should have applied, ask payroll to correct it, because the employer is responsible for the remittance.

Guides, tools and templates for this topic

Read next: NSSF contributions explained: tiers, limits and what you pay, The Affordable Housing Levy explained for employees and employers, How PAYE is calculated in Kenya, step by step

Related calculators: PAYE Calculator, NSSF Calculator, SHIF Calculator

Excel templates: Monthly payroll workbook (up to 50 employees)

More in the blog and the template shop, or ask for a custom template.