Finance Act 2023: Government to backdate Housing levy to July 1

Cabinet Secretary for Lands, Public Works, Housing, and Urban Development, Zachariah Njeru.[Wilberforce Okwiri,Standard]

The government will begin backdating the Housing Levy to July 1, 2023, following court's decision to lift orders suspending the Finance Act 2023.

In a notice published on local dailies on Thursday, August 3, the State Department for Housing and Urban Development notified that the levy is now in effect, and shall be remitted by the employer not later than nine working days after the end of each month.

"The levy is payable by the employee and employer at a rate of 1.5 per cent of the employee's gross monthly salary by the employee, and 1.5 per cent of the employee's monthly gross salary by the employer, as outlined in the Finance Act 2023," the notice read.

Further, the Cabinet Secretary for Lands, Public Works, Housing, and Urban Development, Zachariah Njeru, has appointed the Kenya Revenue Authority (KRA) as the collection agent.

The Revenue Authority will issue communication on the mode of collection.

Last week, a three-judge bench hearing the case allowed the government to collect taxes, arguing that the High Court erred by freezing the implementation of the new law.

Justices Mohamed Warsame, Kathurima M'Inoti, and Hellen Omondi ruled that Kenyans can get refunds in the event the Court finds that the Act is unconstitutional.