The Kenya Revenue Authority (KRA) has stated that housing levy deductions for the government's affordable housing scheme would take effect on March 19.

On Thursday, the KRa asked firms to deduct 1.5 percent of their employees' gross pay and remit it, along with a matching contribution of 1.5 percent for each employee.

PHOTO | COURTESY KRA

“With effect from 19 March 2024, all employers are required to deduct the affordable housing levy from the employee's gross salary and remit together with the employer's contribution as follows: One point five per centum (1.5%) of the employee's gross monthly salary by the employee; One point five per centum (1.5%) of the employee's monthly gross salary by the employer,” KRA said.

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Non-salaried Kenyans must pay 1.5% of their gross income to KRA as a housing levy. The fee must be remitted by the ninth working day after the end of each month.

PHOTO | COURTESY President Ruto

Employers will make housing levy payments at KRA agent banks or by mobile money using the eCitizen Paybill Number 222 222 or the USSD code *222#.

"Any person who fails to comply with the law shall be liable to payment of a penalty equivalent to three per cent (3%) of the unpaid funds for every month if the same remains unpaid," he said.

President William Ruto signed the contentious Affordable Housing Bill into law on Tuesday.