Affordable Housing Levy Calculator Kenya
What housing levy do the employee and employer each remit?
Monthly cash pay before deductions. Non-cash benefits are not part of the levy base.
The employee's levy comes off pay before PAYE is worked out.
Employer view
To see the total monthly remittance.
Both sides pay. 1.5% is deducted from the employee and the employer adds 1.5%. The employer remits both to KRA.
No upper limit. Unlike NSSF, the levy applies to the whole salary.
Tax-deductible. Since 27 December 2024 the employee's levy reduces taxable pay. The old 15% housing relief no longer applies.
Housing levy
per month · 2026 rates- Employee per year
- 9,000.00
- Employer per year
- 9,000.00
- Total per year
- 18,000.00
How it's worked out
- Take gross cash pay: basic salary, allowances, overtime and bonus. Non-cash benefits are not part of the base.
- Employee levy is 1.5% of that, deducted from pay.
- Employer levy is another 1.5%, paid on top.
- Remit both to KRA. Multiply by the number of employees for the team total.
- Tax saving: work out PAYE with the employee's levy deducted and again without it. The difference is the tax saved.
Housing levy at common salaries
| Gross salary (KES) | Employee (KES) | Employer (KES) | PAYE saved (KES) |
|---|---|---|---|
| 15,000 | 225.00 | 225.00 | 0.00 |
| 50,000 | 750.00 | 750.00 | 225.00 |
| 100,000 | 1,500.00 | 1,500.00 | 450.00 |
| 250,000 | 3,750.00 | 3,750.00 | 1,125.00 |
| 1,000,000 | 15,000.00 | 15,000.00 | 5,250.00 |
Questions people ask
What is the housing levy rate in 2026?
1.5% of gross salary from the employee plus 1.5% from the employer, 3% in total. There is no upper limit.
Is the housing levy tax-deductible?
Yes. Since 27 December 2024 the employee's 1.5% is deducted from pay before PAYE is calculated. The old 15% affordable housing relief no longer applies.
Who collects the housing levy?
KRA, through the employer. The employer deducts the employee's 1.5%, adds its own 1.5% and remits both. See the statutory deadlines tool for when it is due.
Is there a maximum housing levy?
No. Unlike NSSF, the levy has no ceiling. It is 1.5% of the whole gross salary, so a salary of KES 1,000,000 pays KES 15,000 from each side.
Sources
Rates last checked 13 Sep 2026. Estimates only, not tax or legal advice.