In Short: Kenya Affordable Housing Levy (2026)
The Affordable Housing Levy (AHL) is established at 1.5% of gross monthly remuneration paid by the employee, matched by an identical 1.5% paid by the employer (total 3.0%). There is no maximum monetary cap. Employee housing levy contributions are an allowable statutory deduction, reducing your taxable income prior to PAYE tax calculation.
Assessing the impact of housing infrastructure contributions on your monthly salary requires an up-to-date PAYE calculator that incorporates the tax-deductible status of the levy established under the Affordable Housing Act 2024.
Housing levy calculator
Enter your gross monthly remuneration below to compute your employee deduction, the employer's matching liability, and the income tax savings resulting from its pre-tax deduction.
How the levy works
The Affordable Housing Act 2024 established the legal framework governing the Affordable Housing Levy across Kenya. Key statutory elements include:
- Base of Calculation: The levy applies at 1.5% across an employee's total gross remuneration, encompassing basic pay and cash allowances (housing, transport, and bonuses).
- Employer Matching Obligation: Employers must match the employee's 1.5% deduction shilling-for-shilling.
- No Upper Cap: Unlike NSSF, there is no upper salary ceiling on the Housing Levy.
- Remittance Deadline: Employers must remit both employee and employer portions to the KRA by the 9th day of the following month.
Is the housing levy tax deductible?
Yes. Following legislative amendments and official KRA administrative notices, employee Affordable Housing Levy contributions are treated as an allowable deduction under Section 15 of the Income Tax Act. The levy is subtracted from gross pay before applying PAYE tax brackets, reducing your net tax liability. To learn how all statutory deductions combine, visit our statutory deductions hub, consult our NSSF calculator, and review our SHIF calculator.