The Affordable Housing Levy on a KSh 50,000 salary is KSh 750 a month, matched by KSh 750 from the employer.
How the Housing Levy works
The Affordable Housing Levy is charged at 1.5% of gross salary on the employee, matched by an equal 1.5% from the employer. Only the employee's 1.5% is deducted from take-home pay; the employer's share doesn't affect your payslip.
Because the employee portion is deducted before PAYE is calculated, it slightly reduces your taxable income alongside your NSSF contribution.
Rates used in this calculator
Affordable Housing Levy
Employee
1.5% of gross pay
Employer
1.5% of gross pay
Deducted before PAYE
Yes
Frequently asked questions
How much is the Affordable Housing Levy?
The Affordable Housing Levy is 1.5% of your gross salary, deducted from your pay. Your employer contributes a matching 1.5%, though only your own 1.5% reduces your take-home pay.
Does the Housing Levy reduce my taxable income?
Yes, the employee portion of the Housing Levy is deducted from your gross salary before PAYE is calculated, which reduces your taxable income and therefore your PAYE liability.
Is the Housing Levy mandatory for all employees?
Yes, it applies to all employees in formal employment in Kenya, deducted automatically through payroll.