The Affordable Housing Levy (AHL) is charged under the Affordable Housing Act, 2024 and collected by KRA. Employees and employers each pay 1.5% of the employee’s gross monthly salary. Enter gross pay to see both shares and the total your employer remits.
How the levy works
KRA’s PAYE guidance says each employee and employer pays the levy at 1.5% of the employee’s gross monthly salary, and the combined amount must be remitted within nine working days after the end of the month in which it falls due. There is no upper limit: on a KES 200,000 salary, the employee pays KES 3,000 and the employer another KES 3,000.
Is the Housing Levy tax deductible?
Yes. KRA lists the amount deducted as Affordable Housing Levy among the deductions allowed in determining taxable employment income. So the employee’s 1.5% reduces the pay on which PAYE is charged. The employer’s matching 1.5% is a cost to the employer and does not come out of your salary.
Examples
| Gross salary (KES) | Employee (KES) | Employer (KES) | Total (KES) |
|---|---|---|---|
| 30,000 | 450 | 450 | 900 |
| 50,000 | 750 | 750 | 1,500 |
| 100,000 | 1,500 | 1,500 | 3,000 |
| 300,000 | 4,500 | 4,500 | 9,000 |
For your full payslip, including PAYE, SHIF and NSSF, use the PAYE calculator.
Frequently asked questions
What is the Housing Levy rate?
1.5% of gross monthly salary from the employee and 1.5% from the employer.
Is there a cap on the Housing Levy?
No. It is a flat 1.5% of gross salary with no maximum.
When must employers remit the levy?
Within nine working days after the end of the month in which the payment is due, according to KRA.
Does the levy reduce my PAYE?
Yes. The employee’s levy is an allowable deduction when computing taxable employment income.
Related: PAYE & net salary calculator · SHIF calculator · NSSF calculator · Housing Levy calculator · Bank loan calculators
Sources
- KRA – Pay As You Earn (PAYE) (checked 13 October 2026)
