Housing Levy Calculator Kenya (2026) | 1.5% KRA Deduction
Patrick Buyela
Verified by Patrick Buyela, Payroll Expert · Updated March 2026

Housing Levy Calculator Kenya

Calculate your exact Affordable Housing Levy contributions. This free 2026 tool instantly computes both the 1.5% employee deduction and the mandatory 1.5% employer match based squarely on your gross salary.

Employee Earnings
KES

Pro Tip: Under the Affordable Housing Act, the levy is completely uncapped. The 1.5% deduction strictly applies to your total gross monthly earnings without any upper limit.

Housing Levy Breakdown
Base Gross Salary
KES 0
Employee Deduction 1.5% of Gross Salary
- KES 0
Employer Match 1.5% of Gross Salary
+ KES 0
Total KRA Remittance (3.0%)
KES 0
*Remitted to KRA before the 9th of the following month.

Understanding the Housing Levy Rates

Our Housing Levy Calculator operates using the parameters enforced by the Kenya Revenue Authority (KRA) under the Affordable Housing Act. The levy is a mandatory contribution designed to fund affordable housing projects across Kenya.

How the 1.5% Deduction Works

The system is structurally divided into two matching halves. Both the employer and the employee must seamlessly contribute an equal 1.5% of the gross salary.

Levy Component Statutory Rate Calculation Logic
Employee Deduction 1.5% Withheld directly from the employee's gross pay.
Employer Contribution 1.5% Matched directly by the corporate employer.
Total KRA Remittance 3.0% The combined total sent to the KRA portal.

Frequently Asked Questions

Is there a maximum cap on the Housing Levy deduction?
No. Under the legally mandated Affordable Housing Act, the levy is entirely uncapped. The 1.5% deduction applies to your total gross salary regardless of how high your earnings might be.
Does the employer have to match the employee's deduction?
Yes. The law mandates a strict 1-to-1 employer match. Whatever amount is deducted from the employee's gross pay (1.5%) must be perfectly matched by the corporate employer (1.5%) before the final remittance.
Are expatriates and foreign workers mandated to pay the Levy?
Generally, yes. Foreign national employees working under a local Kenyan contract are subject to standard statutory deductions, including the Affordable Housing Levy.
Is the Housing Levy deduction applied before or after PAYE tax?
The Housing Levy is treated as an allowable deduction under KRA guidelines. It is subtracted from the employee's gross pay before the progressive PAYE tax bands are applied.
When is the exact deadline for remitting the Housing Levy?
The total 3.0% statutory remittance must be submitted to the Kenya Revenue Authority before the 9th day of the following month to avoid financial penalties.

Struggling with local statutory compliance?

If managing multiple KRA taxes is draining your internal resources, Two Max Group provides expertly managed outsourcing solutions to eliminate your local compliance risks.

Explore Managed Payroll Services

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