Mar 29, 2024 1 min read

Kenya – Enactment of the Affordable Housing Act 2024

On the 26th 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 19th 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.


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.


All contributions are to be made to the Kenya Revenue Authority by the 9th 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

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Kenya – Enactment of the Affordable Housing Act

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