NAIROBI, Kenya, Aug 3 – The government has backdated the mandatory contribution towards the Housing Levy proposed in the Finance Act, 2023 to July 1.
This follows the lifting of the orders barring implementation of the Act by the Appellate Court last week.
A public notice by the Ministry says the levy is payable by the employee and employer at a rate of one point five per cent of the employee’s gross monthly salary by the employee, and one point five per cent of the employee’s monthly gross salary by the employer.
This translates to high-income earners of more than Sh500,000 a month being charged tax at 32.5 percent for monies up to Sh800,000, while those above Sh800,000 will be charged 35 percent on the extra cash.
The government has appointed the Kenya Revenue Authority as the collection agent.
