- According to KRA, the employer's contribution to the Affordable Housing Levy is an allowable deduction under Section 15 of the Income Tax Act.
- The Revenue Authority said that resident individuals, who pay the affordable housing levy, shall be entitled to affordable housing relief
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The Kenya Revenue Authority has announced that the Affordable Housing Levy will take effect on March 19, 2024.
KRA said the Authority is the designated collector of the Affordable Housing Levy.
"This takes effect from March 19, 2024. Employers are therefore required to deduct the AHL from employees' gross salary and remit it together with a matching contribution from the employer of 1.5 per cent of the gross monthly salary for each employee," the statement reads.
"Additionally, all other individuals who earn income in Kenya are required to remit 1.5 per cent of their gross income as the Affordable Housing Levy (AHL) to KRA."
KRA said that the date for remittance of the Affordable Housing Levy is the ninth working day after the end of the month in which the gross salary was due or gross income was received or accrued.
KRA clarified s that all employers are required to 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 mobile money through eCitizen Paybill Number. 222 222 or by dialling *222.
According to KRA, the employer's contribution to the Affordable Housing Levy is an allowable deduction under Section 15 of the Income Tax Act.
The Revenue Authority said that resident individuals, who pay the affordable housing levy, shall be entitled to affordable housing relief.
"Any person who fails to comply with the law shall be liable to payment of a penalty equivalent to three per cent (3 per cent ) of the unpaid funds for every month if the same remains unpaid," KRA said.
President William Ruto on Tuesday assented to the Affordable Housing Bill, after it was passed by Parliament.
The signing ceremony was held at State Nairobi.
Parliament approved the controversial bill that was opposed by Opposition lawmakers.
The Azimio lawmakers termed the legislation illegal and unconstitutional.
The Senate passed it last Tuesday, with a raft of amendments, following its passage by the national assembly.
However, the National Assembly on Thursday endorsed the Senate’s amendments, essentially escaping the mediation route that could have derailed the Bill.
The Bill establishes a framework for the collection of the affordable housing levy and implementation of the affordable housing programmes.