Tax & pay
Affordable Housing Levy explained: who pays 1.5%, and can you get it back?
The Housing Levy takes 1.5% of gross pay, matched by your employer. Here's how it works, whether it's refundable, and how it affects your tax in 2026.
Employees pay 1.5% of gross salary and employers add another 1.5%. Under the Affordable Housing Act 2024 the levy is not refundable. It funds the affordable housing programme, and contributors can apply to buy or rent-to-own a unit.
How much you pay
| Gross / month | Your levy | Employer's levy |
|---|---|---|
| KES 20,000 | KES 300 | KES 300 |
| KES 50,000 | KES 750 | KES 750 |
| KES 100,000 | KES 1,500 | KES 1,500 |
| KES 200,000 | KES 3,000 | KES 3,000 |
Non-salaried people with income pay 1.5% of gross income. Employers remit by the 9th working day after the end of the month, and late payment attracts a 3% penalty per month.
Can I get my Housing Levy back?
Not as cash. An earlier version under the Finance Act 2023 talked about refunds after 15 years or at retirement, but the Affordable Housing Act 2024 that replaced it has no refund mechanism. What you get is eligibility for the Affordable Housing Programme. Separate voluntary savings you make through Boma Yangu can be withdrawn.
How to use it towards a home
- Register on Boma Yangu using your eCitizen account or by dialling *832#.
- Save a deposit, usually 10% of the unit price, through the platform.
- Apply for a unit when projects open, and pay the balance through a mortgage or tenant-purchase plan.
Thinking about buying? Our rent or buy guide shows when owning pays off.
Does the levy reduce tax?
Yes. Since 27 December 2024 it's deducted from your pay before PAYE, replacing the old 15% housing relief.
A short history of the levy
| When | What happened |
|---|---|
| July 2023 | Housing Levy introduced under the Finance Act 2023 |
| November 2023 | The High Court found the original levy unconstitutional |
| March 2024 | The Affordable Housing Act 2024 re-introduced the levy on a new legal basis |
| 27 December 2024 | The levy became deductible before PAYE, replacing the 15% housing relief |
What the levy costs you, after tax
Because the levy now reduces taxable pay, its real cost is lower than 1.5%. On a KES 100,000 salary you pay KES 1,500, but your PAYE falls by about KES 450, so the net cost is about KES 1,050 a month.
Who is eligible for affordable homes?
Kenyans aged 18 and over can register on Boma Yangu. Units are allocated by category, from social housing for lower incomes to affordable and market-rate units, with income bands for each. Priority rules and prices depend on the project, so check each listing.
Should you wait for an affordable unit or buy elsewhere?
Compare the total cost of the unit, the tenant-purchase or mortgage terms, the location and how long you'd stay. Our rent vs buy calculator lets you test any price and mortgage rate against renting.
Frequently asked questions
What is the Housing Levy rate in Kenya?
1.5% of gross salary from the employee and 1.5% from the employer.
Is the Housing Levy refundable?
No. The Affordable Housing Act 2024 does not provide refunds. Contributors can instead apply for affordable housing units.
Is the Housing Levy deducted before tax?
Yes, since 27 December 2024.
How do I register for affordable housing?
On the Boma Yangu platform, through eCitizen or by dialling *832#.
Sources
- Affordable Housing Act 2024
- Grant Thornton Kenya — The Affordable Housing Act 2024
- Bowmans — Tax Laws (Amendment) Act 2024 highlights
Links are for reference only. METRIKA is independent and not affiliated with or endorsed by these organisations.
Last reviewed 1 Oct 2026. METRIKA gives estimates and general information, not financial, tax, legal or immigration advice.