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    Housing Levy Calculator

    Determine mandatory contributions for the 2026 Affordable Housing Programme using the latest 1.5% rate.

    Input Details

    * The Housing Levy is 1.5% of gross salary for both employee and employer.
    * 2026 Update: The employee contribution is now an allowable deduction (pre-tax).

    Updated 1 April 2026
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    Understanding the Housing Levy in 2026

    The Affordable Housing Levy is a mandatory statutory deduction introduced by the Government of Kenya through the Finance Act 2023. This levy is designed to fund the National Housing Development Fund (NHDF), which supports the construction of affordable residential units for Kenyans.

    Contribution Rates and Regulations

    ContributorPercentage RateBasis
    Employee1.5%Gross Monthly Income
    Employer1.5%Employee's Gross Monthly Income

    Key Obligations

    • Employer Duty: It is the legal responsibility of the employer to deduct and remit both the employee and employer portions.
    • Deadline: Contributions must be remitted to the KRA by the 9th day of the following month.
    • Compliance: Late payments attract a penalty of 2% of the unpaid amount for every month or part thereof.

    Direct Benefits

    The levy is not just a tax; it's a social investment. Contributors gain:

    • Priority access to social housing and affordable apartments.
    • Favorable mortgage financing terms through partner institutions.
    • Development of infrastructure in surrounding affordable housing nodes.

    Is the Housing Levy Tax Deductible?

    As of 2026 regulations, the Affordable Housing Levy remains a pre-tax deduction consideration. Always consult with a certified Kenyan tax professional or use our PAYE Calculator to see the full impact on your take-home pay.