Kenya – Enactment of the Affordable Housing Act 2024

On the 26^th of January 2024 the Court of Appeal rejected the government’s appeal to continue collecting the Affordable Housing Levy.  This decision has since been reversed as on the 19^th of March 2024 when the President of Kenya approved the Affordable Housing Act, 2024 into law.

From the above mentioned date, employers are required to remit 1.5% of the employees gross salary for both employee and employer contributions respectively.

Contributions

When the employee spends a part of a day away from his usual place of work, domestic per diem mentioned below is exempt from income tax.

Employee Contributions: 1.5% of the employee’s gross monthly salary.

Employer Contributions: 1.5% of the employee’s gross monthly salary.

Remittance

All contributions are to be made to the Kenya Revenue Authority by the 9^th working day of the following month. Should any person not be in compliance, they shall be liable to a 3% penalty for every month the contributions remain unpaid.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change