The Housing Levy deductions were retroactively applied to July 1, 2023, and the Kenya Revenue Authority (KRA) was designated as the collection agent.
After Treasury Cabinet Secretary Prof. Njuguna Ndung’u argued that the government was losing billions of shillings as a result of the freeze, the Court of Appeal overturned an order postponing the execution of the Finance Act 2023.
The State Department for Housing and Urban Development stated in a statement on August 2, 2023, that the levy will be paid by both the employee and the employer at the rate of 1.5% of the employee’s gross monthly income as specified in the Finance Act 2023.
The funds must be transferred by the employer not later than nine working days following the end of the month in which the payments are due, according to the State Department for Housing and Urban Development.
Zachariah Njeru, the secretary to the Lands Cabinet, stated that the KRA will publish a communication with guidance on the method of collection.
