In a move to support affordable housing initiatives, the Kenya Revenue Authority (KRA) has initiated the deduction of the affordable housing levy (AHL) from March payslips, effective March 19, 2024.
Under the new directive, all employers are mandated to deduct the AHL from employees’ gross salaries and contribute 1.5 percent of the employee’s gross monthly salary.
This measure aims to expand participation in the housing initiative, addressing concerns raised by a High Court ruling last year regarding the exclusion of informal sector workers.
AHL deductions are due on the 9th working day of the following month. Employers are required to declare the AHL under sheet “M” of the Pay as You Earn (PAYE) return on iTax and make payments through designated KRA agent banks or mobile money platforms.
Non-compliance will result in penalties equivalent to three per cent of the unpaid funds for each month, as stated by the KRA. This step signifies progress in addressing Kenya’s housing deficit and promoting accessible housing solutions for all citizens.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
22nd March, 2024
