Glossary term
Affordable Housing Levy
The Affordable Housing Levy is a Kenyan statutory deduction of 1.5% of gross monthly salary, matched by a further 1.5% from the employer. It funds the government's affordable housing programme.
Every Kenyan payroll now carries the Affordable Housing Levy. The employee contributes 1.5% of gross pay, the employer adds the same, and the money goes to the government's housing programme.
Updated October 17, 2026 · Glossary
How the levy is calculated
The Affordable Housing Levy is 1.5% of an employee's gross monthly salary, with the employer contributing a matching 1.5%. It is charged on gross pay, so allowances that form part of salary count towards it. For casual site workers, gross pay is the total wages earned that month.
Who pays it
The deduction applies to employees on the payroll, and the employer remits both the employee and the employer shares. It sits alongside PAYE, NSSF and SHIF as a monthly statutory obligation.
Filing the levy
The levy is filed monthly with the other statutory returns, due by the 9th of the following month. Because it is a percentage of gross pay, an accurate wage record is what keeps the levy correct and audit-ready.
Frequently asked questions
How much is the Affordable Housing Levy?
1.5% of gross monthly salary from the employee, plus a matching 1.5% from the employer. It is charged on gross pay, not on taxable pay after other deductions.
Is the housing levy the same as SHIF or NSSF?
No. The housing levy funds affordable housing, SHIF funds health cover and NSSF funds pensions. They are three separate deductions, remitted monthly.
When is the housing levy due?
Along with PAYE, NSSF and SHIF, the housing levy is due by the 9th of the month following the payroll month. Keep wage records and payslips to support the return.
Keep reading
Guides
Affordable Housing Levy Guide
The affordable housing levy explained for construction payroll — 1.5% employee plus 1.5% employer, who it applies to and how to avoid penalties.
Product
Automated Statutory Deductions
FundiPay calculates PAYE, NSSF, SHIF and the Affordable Housing Levy per worker and prepares the returns, keeping site payroll compliant.
Guides
PAYE for Construction Workers
How PAYE works for Kenyan construction crews — tax bands, personal relief, casual daily wages, and the mistakes that trip up site payrolls.