Editorial Desk 
- Collection of Affordable Housing Levy by Kenya Revenue Authority (KRA)
Kenya Revenue Authority (KRA) has come out to inform members of the public that the Affordable Housing Act,2024 designates KRA as the ”Collector” of the Affordable Housing Levy (AHL)
The Taxman in its statement said it will start collecting the Levy effective 19th March , 2024 and urges all the Employers to deduct and remit 1.5 percent from the Employee’s gross income as the affordable Housing Levy
The Deduction is as follows;
1.5 % of the employee’s Gross monthly salary by the employee
1.5 % of the employee’s monthly gross salary by the employer.
All other persons who receive income or whose income is accrued in Kenya are required to remit 1.5 percent of their Gross Income as the Affordable Housing Levy(AHL).
However, the due date for remitting the Levy has been set on 9th working days after the end of the month in which the gross salary was due or gross income was received or accrued.
Kenya Revenue Authority has clarified that all employers are required to declare the AHL under sheet ‘M’ of the PAYE Return on itax; generate a payment slip under the tax head “agency revenue” and tax sub-head ”Housing Levy”; and make payments at KRA agent Banks or mobile money through eCitizen Paybill Number 222 222 or by dialling *222#.
The employer’s contribution to the Affordable Housing Levy(AHL) is an allowable deduction under Section 15 of the Income Tax Act.
Resident Individuals, who pay the Levy shall be entitled to the affordable Housing relief. Any person who fails to comply with the directive shall be liable to payment of a penalty equivalent to 3 percent of the unpaid funds for every month if the same remains unpaid.
In its statement,KRA said is committed to ensuring all persons are optimally supported,KRA will continously engage and collaborate with all stakeholders to enhance compliance with the Affordable Housing Levy Provisions.
