🏗️

Kenya Affordable Housing Levy (AHL) Calculator

Calculate the Affordable Housing Levy deduction for both employee and employer, see the impact on your PAYE, and view annual projections.

💰 Finance & TaxFinance Act 2023, Section 84ARarely changes
KES 0KES 500,000

Employee Contribution (1.5%)

KES 1,500

Deducted from your salary

Employer Contribution (1.5%)

KES 1,500

Paid by your employer

Impact on Your Pay

ItemAmount
Gross SalaryKES 100,000
Employee Levy (1.5%)− KES 1,500
PAYE Tax Relief (from levy)+ KES 1,500
Employer Levy (1.5%)KES 1,500
Total to Housing FundKES 3,000

About the Housing Levy

  • •The Affordable Housing Levy (AHL) was introduced by the Finance Act 2023
  • •The Supreme Court of Kenya upheld the levy's constitutionality in November 2023
  • •Both employer and employee each contribute 1.5% of gross salary
  • •The employee's contribution qualifies for tax relief against PAYE
  • •Contributions are remitted through the eCitizen/i-Tax platform by the 9th of the following month
  • •Self-employed persons also contribute 1.5% of their declared income
  • •The levy funds the Affordable Housing Programme aimed at delivering 250,000 housing units

Frequently Asked Questions

What is the Affordable Housing Levy in Kenya?
The Affordable Housing Levy (AHL) is a statutory deduction of 1.5% of gross salary, introduced by the Finance Act 2023. Both employer and employee each contribute 1.5%, totaling 3% of gross salary going to the Affordable Housing Programme.
Is the Housing Levy mandatory?
Yes, it is mandatory for all employed persons. The Supreme Court of Kenya upheld its constitutionality in November 2023. Self-employed persons also contribute 1.5% of their declared income.
Does the Housing Levy reduce my PAYE?
Yes. The employee's 1.5% contribution qualifies as a tax relief against PAYE, which means your net PAYE tax payable is reduced by the levy amount. This makes the effective cost less than the full 1.5%.
When is the Housing Levy remitted?
Employers must remit both employee and employer contributions to KRA through the i-Tax platform by the 9th of the month following the deduction.
What does the Housing Levy fund?
The levy funds the Affordable Housing Programme, which aims to deliver 250,000 affordable housing units across Kenya. Contributors may be eligible for affordable housing allocation.

Related Tools

🧮

PAYE Calculator

Calculate your net salary after PAYE tax, NHIF, NSSF, and Housing Levy deductions. Uses the latest KRA FY 2024/25 tax bands with itemized breakdown.

Finance & Tax
📱

M-Pesa Fees

Calculate exact M-Pesa fees for any transaction type. Includes smart "cheapest threshold" analysis showing when splitting transactions saves money.

Finance & Tax
🏠

Stamp Duty Calculator

Calculate the total cost of transferring property in Kenya including stamp duty, LSK conveyancing fees, registration fees, and other charges.

Finance & Tax
🎓

HELB Calculator

Calculate your HELB loan balance, monthly repayment obligation, total interest owed, and projected repayment completion year based on your loan details.

Finance & Tax