The president of Kenya on 19 March 2024, signed into law the Affordable Housing Act 2004 (The Act). The Act is effective 19 March 2024 and reintroduces the Affordable Housing Levy (AHL) which was suspended in January 2024 due to being deemed unconstitutional.

Under the Act, the employer and employee contribution rates remained unchanged:

• The employer’s contribution at 1.5% of the employee’s gross monthly salary, and
• The employee’s contribution at 1.5% of the employee’s gross monthly salary.

Resident individuals, who contribute to the affordable housing levy, shall be entitled to the affordable housing relief. The relief is 15% of the contribution amount, subject to maximum relief of Ksh 108 000 per annum (Ksh 9 000 per month).

Employers are thus expected to account for the levy from the March 2024 payroll going forward and remit to the Kenya Revenue Authority(KRA).

Please ensure that your Methods of Calculation has been linked on your employees for the the contributions are calculated.