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Housing Levy Kenya — What You Need to Know
Updated April 2026 — HelaBora
What is the Housing Levy?
The Affordable Housing Levy is a mandatory contribution from all employed Kenyans towards the government's affordable housing programme. It was introduced in the Finance Act 2023 and became effective in March 2024.
How Much is it?
- -Employee: 1.5% of gross salary
- -Employer: 1.5% of gross salary (matching contribution)
- -Total: 3% of gross salary
| Gross Salary (KES) | Employee Deduction | Employer Match | Total |
|---|---|---|---|
| 20,000 | 300 | 300 | 600 |
| 50,000 | 750 | 750 | 1,500 |
| 100,000 | 1,500 | 1,500 | 3,000 |
| 200,000 | 3,000 | 3,000 | 6,000 |
Is the Housing Levy Tax-Deductible?
Yes. The Housing Levy is an allowable deduction before calculating PAYE tax. This means your taxable income is reduced by the Housing Levy amount, partially offsetting the impact on your net pay.
Can I Access the Money?
The Housing Levy contributions go to the National Housing Development Fund. You may be able to apply for affordable housing under the government's programme, but there is no provision to withdraw individual contributions as cash.
Impact on Your Salary
Combined with NSSF Year 4 (KES 6,480 max) and SHIF (2.75%), the Housing Levy adds another 1.5% deduction. Total statutory deductions for a KES 100,000 salary:
| Deduction | Amount (KES) |
|---|---|
| PAYE | ~18,118 |
| NSSF | 5,940 |
| SHIF (2.75%) | 2,750 |
| Housing Levy (1.5%) | 1,500 |
| Total Deductions | ~28,308 |
| Net Pay | ~71,692 |
Use our PAYE calculator for your exact net pay.
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Frequently Asked Questions
How much is the Housing Levy in Kenya?
The Housing Levy is 1.5% of gross salary, deducted from your pay. Your employer contributes a matching 1.5%, making the total 3% of gross salary.
Is the Housing Levy mandatory?
Yes. All employed Kenyans (both formal and informal sector) are required to contribute to the Housing Levy. Self-employed individuals also contribute based on declared income.