The government had backdated the Housing Levy deductions to July 1, 2023, and appointed the Kenya Revenue Authority (KRA) as the collection agent.
This comes after the Court of Appeal overturned an order suspending the implementation of the Finance Act 2023 after Treasury Cabinet Secretary Prof Njuguna Ndung’u argued that the government was losing billions of shillings as a result of the freeze.
In a statement on August 2, 2023, the State Department for Housing and Urban Development said the levy will be payable by the employee and the employer at the rate of 1.5 per cent of the employee’s gross monthly salary as outlined in the Finance Act 2023.
According to the State Department for Housing and Urban Development, the money shall be remitted by the employer not later than nine working days after the end of the month in which the payments are due.
Lands Cabinet Secretary Zachariah Njeru said that KRA will issue a communication advising on the mode of collection.
