Housing Levy deductions to take effect from March 19

President William Ruto and other senior government officials inspect an affordable housing project at Mukuru in Nairobi. [File, Standard]

The Affordable Housing Levy deductions will take effect from March 19, 2024, the Kenya Revenue Authority (KRA) has announced.

Employers will be required to deduct 1.5 percent of their employees' gross salary every month and remit it together with a matching contribution.

"All other individuals who earn income in Kenya are required to remit 1.5 percent of their gross income as the Affordable Housing Levy (AHL) to KRA," said the tax agency in a statement.

In the latest developments, the court also declined to stop the implementation of the Affordable Housing Act on Thursday, paving the way for employed Kenyans to pay the controversial housing levy.

Justice Chacha Mwita, noting that the matter raised pertinent questions, directed the two cases challenging the implementation of the Act to be mentioned on May 16.

The president assented to the Bill on Tuesday, March 19, after it was passed by Parliament.

During the ceremony, Ruto expressed gratitude to the courts for challenging the implementation of the Bill.

"The law courts asked us to relook into the Bill, and that is commendable, we now have on board people that had been left out. It is key to note that public participation is not a sterile provision in the constitution," Ruto said.